Trading the Cable swings via averages

So it goes like this...

Inference on the hour was a div. The div should return price to the EMA so on the 5 min we short the div at the top.

On the 5min it crosses the EMA and finds support (2nd Entry and the bolted down to the target.

There is a perfect ABCD going long on the 15m target 1.2575

Hi Alan

does Price Action and candlestick pattern help to make decision? e.g. when to entry/exit/keep the trade? Can you share what could be interested to us from your experience please?


I actually read through the pdf and this is not being mentioned, so I guess the answer maybe no, but occasionally I see people discussing PA in the thread, thats why I ask.

Failed at the 50% level

Hi Alan,

Quick question. In the charts you posted, on M5 where you mentioned "Exit", what exactly gave you the signal to exit there exactly?

Yep and taken out with a small stop

Then the bugger goes back up without me!

I see what the problem was I went by your post but that was not drawn correctly. That larget one you have looks like it may be on the 30 min...I will check that shortly.

Yes it was there on the 30min. It started with the RSI div, this was followed by the hook and then it ran to the target.

All in all a very messy trade.

Ok, thanks Alan.

Hope that one was correct

Well it pulled back somewhat and then started up again. I re-entered long and it carried on all the way up to the ABCD target of 1.2575 - as indicated in post 4142 some 14 hours ago.

There were several targets some long some short, the one you are referring too was short. The longer term one was on the hour chart for a long.

Correct well done go to the top of the class and give the pencils out

This brings us to moves within moves and the relationships of all the things I have shown. How they fit together nicely and why we don't need any more stuff on our charts. Why news does not interest me at all. The charts just about always telegraphs where price is going and why reading the messages in the language spoken is so important.

Just look, I mean really look at the chart below. The green zone presents us with the primary target. We see price bounce at the 50% level which on the RSI was the top of the triangle and an RSI div.

Lower time frames were giving short signals and at the blue box was the 15 min signal giving us a target of the 4 hour EMA. The bears could not find support below the 1 hour EMA and closed in a bullish RSI div. From there ran all the way to the 1 hour target to close the week.

Now we see the 1 hour is again in a bearish RSI div so we may see gappage short over the weekend.

All or this stuff I have explained in past posts.

Then we get some minor moves where we had no signal on the one hour. These are important too because they are simple retracements but in real time cause us much confusion. For example look at the horizontal levels of the triangle All three levels of AB and C were ZOO points to consider. As is also the target D.

It is not easy learning the language of the charts and to throw in other stuff is certainly not going to help. The best way is to track price for yourself and work out why such actions happened and you will start to spot the reasons for everything. The Light Bulb Will Switch ON.

I have been doing this a long time and still miss stuff, we have to give it our complete attention.

Yes, I can get pretty easy a master to understand the reasons for everything. In hindsight. But I fail like a stupid boy if I want to project recent moves to future outcomes.

In my past life I would have run away already. But for some reason I believe in all this here and keep fighting my war against my blindness.

And if I close my eyes in bed I dream about a structured webinar in levels. Just a dream. Basically I am already humble-happy what I get here. But it is and stays hard. And I stay strong, trying...

Look carefully at the chart and at the A point of the triangle can you see the HOOK.

If so, work out what prompted this retest of the Div?

How would you manage such a trade with your money and your daily objective?

It is not enough to see the signals we have to manage the trade to be winners.

I can't do this for you because we all have different objectives to achieve. Consider Polly's situation having to make $25 for the day. It is about 40 from the A point of the triangle (being the bearish Div) to the expected target of the EMA.

How much must Polly commit to the trade to come out smiling? How could she handle the HOOK?

All of this I have already spoke of, only you can do the work of study.

Look here how I have managed the Polly account. The null days I did not trade because I was sick. So the last two days of the week I make the calculations and trade accordingly to keep Polly on track.

Knowing what to look for is only half the task requiring patience and knowledge, the other half is the money management and the combination of the two results in skill.

Here is the terminal. You see Polly is perfectly on track to make the target for the end of the month without even breaking into a sweat.

I’m looking very happy forward to this new week. Alan, I really beg you, give us this week steady hints on what to look. This would train my view to see the right things at the right time to improve my skills for the future to do it without further hints.

And further, I have still big problems with to put the right stop loss points. I achieved to loose a significant amount in my demo account due to the wrong stop losses. And this is very badly affecting my clear view and confidence.