Trading the Cable swings via averages

It may differ from broker to broker, but your 09;00 chart time is 08:00 GMT on my chart on the Bright charts. On the Night charts your 09:00 line is not to be seen! Anyway, i have a feeling something interesting is coming. Would like to hear how you read the ema's on the Bright chart crossing the 30ema and same time RSI crossing Zero?? Am looking forward!! Have a nice day!!

Looking forward to this, thanks for sharing Alan

You know what, I have been running webinars internationally for over ten years and one of the biggest headaches is that of time. (Don't get me started on clocks)

Just make sure it is 1 hour before the London open, you don't need it on all the charts, just the bright chart will do.

Very good, go to the top of the class and give the pencils out

It's a pleasure, hope you enjoy.

Okay, one hour before LO is 08:00 by me, will change it like that and wait for more info, OR change it as we go fwd!! No big worry with me!! I will follow!! I need 10-15 pips to give me 1% and then try to stay away from the computer!! My most difficult part of trading!! Have a feeling i might get it here, thanks!!

Oh no,no,no not 1%. I am going to show you how to make 1K a day with a 1K account i.e. 100%

Certainly looking forward to more of your lessons to come. Thanks for sharing your knowledge Alan.

Looking forward to your explanation of how you trade!

Thanks Alan, I have subscribed. Interested in finding out more

Hello! Thanks for the post

Is Only applicable to Cable? Cannot this be traded on other pairs?

Well thats not gonna happen but i would be the happiest human on the planet if you proved me wrong lol.

Looks a very complicated system but am subscribed none the less! Cheers Alan

Thank you for sharing! Charts are ready and waiting! Looks great so far!

Subscribed!!

Sorry guys been having PC problems this morning. Should be OK now but if not hang in there.

No you can trade this way on any pair but why would you want to bother making more work for yourself.

The GBP/USD reliable produces 50+ pips which is all we need.

Most things look complicated until you get a handle on them. What was driving a car like when learning.

You have nothing to fear but fear itself.

Numbers are only simple mathematical processes i.e 40 pips x $25 = $1000.

However I will get to the money management in due course.

OK I think that is all the questions answered so far, so today I am going to talk about what to look for on the charts.

It is second nature to me to observe what is going on and I have a bad habit of omitting stuff by crediting people with more that they are perhaps capable of. This is why I ask for questions.

Let's start with the 26EMA.

One can trade with one or more moving averages with whatever periods they choose looking for crossovers or touches and the like. Averages always follow the price action because that is what they are an average of the numbers of periods set. It is also for this reason they are always lagging behind the actual price action. In short this is not a very reliable way to trade and one would need some other device to make sense of the price action to trade it. THIS IS NOT what we are going to do here at all.

Look at the 5 min chart below. Point A is located just where our vertical line is (where we look to trade). Look where point A is on the RSI (fast)

Now do you think even for 1 minute that the average swing at X has any chance at all to drive down to the level of A. Well it could but not yet because this is an oversold situation and it hasn't even broken the swing at S. We could also call this bearish failure. The market will jump on the failure and will begin to test the opposite side... Which it did, level S1.

Our targeted distance is from A to B and for the average swing at X to break the level S1 but this didn't happen because look at the RSI there was divergence between the fast and slow RSI and we CANNOT ignore this so we would close this long trade and begin to take a short trade.

Again the we see a divergence on the RSI at B2, way oversold for the average to make the lower low so again a place to exit and look to go long again. However why would you bother because you have made well over your 50 pips in this case.

Let's continue from B2 we run up to again test the opposite side long. This time price runs into a regular divergence at B3 so DON'T ignore it get out and look to trade short from B3.

Note: Divergence will usually send the price back across the EMA to test the opposite side.

Now this is where it get's a little more interesting. From B3 price crosses the EMA (50 line of the RSI is the same thing) and look at the pivot formed where I say the bears have found support. Note price never gets back to this level and a trend forms taking us down to B4 failing to make S3, over sold and in regular divergence.