Trading the Cable swings via averages

"Lousy 2% profit" ??????????
Compound a 2% dayly profit, on a "lousy" 1000 US account.
After 1 year= 115.888 US
After 2 years=more than 13 million!!!!
Magic of compound (please double check with excell, or here http://compoundaily.com/)
To compound exactly, you would need a Broker like Oanda (market maker btw.) with no fixed lot size.
Also after 1 year, living in Germany like me, half would dissapear on taxes ....so that would slow you down...a bit.

2% a day, consistently, and you should be inviting Warren (Buffett), for lunch soon...and you can pay for it too.

Correct me if I´m wrong

For beginner`s simplicity
Just take any MA break, AFTER a diversion, close on last MA level, or on a MA break (close), against you.

I double checked on 15 minutes, you hit some massive winners here and there...enough to make way more than the small loosers.

Happy weekend everybody.
And gracias NALA!

Lousy, compared to 5% risk taken.

Understand!

I have no idea why we have got onto the subject of compound interest or risk percentages versus profits.

The whole process I have outlined here is to maximise the profit potential whilst limiting the risk as much as possible.

If we get into the subject of % risk V's % reward then the whole structure of the trade changes significantly and I am not going down that road because I know it doesn't work for many reasons which I am not going to get into.

I have outlined a daily target of 1k a day with a 1k start up by compounding the trade to its maximum, controlling the risk to its minimum and rinsing and repeating the exercise repeatedly, that is all there is to it. If we cannot do this everyday then so what, who cares? The point is to keep pushing forwards and accept that some trades are going to be duds but the bigger picture is positive.

We could apply any numbers we like based on the IF variable to produce any outcome we desire but that is pure speculation. For example IF 5% of road accidents are caused by drink drivers then 95% must be caused by those sober jokers so we should all be drunk when driving for safety reasons. Duh!!!!

IF we manage to make our first 1K on day one then the next day the risk % has already halved and if we continue then the risk becomes less but it will always exist to some degree no matter how many times we win the day. At some point you may feel like lifting your game to aim for 2K instead of 1K and depending on whether your account can take it then there is nothing wrong with that at all. I say stay away from IF statements and concentrate on the game in hand by taking the opportunities as they arise and making the most out of them.

IF won't pay the bills, it is our proactive methodology and attitude to taking high probability trades that will ultimately win through and we should not even be considering forecasting our accounts, the actual outcome is the reality.

Well it would be rather difficult to correct the wrongs here because it is totally wrong. You would need to re read the whole thing over again.

Look at the 1 hour and five minute charts and read what we see at the open of todays proceedings.

The 1 hour had an RSI div at a average swing low level. HEADS UP!!!!!!!

The 5 min was also at and average swing low and way down in the basement of the RSI.

OK from what I have told you the Div should return the price to the average or beyond. Look how many pips that is on the 1 hour.

What does this equate to on the 5 min. = A failure of the average to make a LL so it is going to try to make a an average HH. Note there was no divergence on the 5 min, nor does there have to be. The inference is taken from the 1 hour chart (Div at the level) The trade is taken on the 5 min because the RSI is at its extreme low. In all we expect bearish failure so we should be expecting bullish success.

Attachment g

I know this is not our trading time it is just by way of an example of chart reading, putting 2 and 2 together to give us a high probability trade. Can it fail... Of course it can and we get stopped out.

And a tad later we see the 5 min has made the average HH.

Waiting, watching

today's

Would you guys call this a valid divergence? Sorry if I post noob questions

I can't really read this chart. It is not telling me very much.

The RSI is squashed making it difficult, widen it up to 50% of the chart i.e. 50% price chart and 50% RSI.

You have a series of horizontal lines the EMA has crossed, they are no longer required. Whereas the target ones are required.

As for the divergence which I can only just make out because it is squashed, yes it is valid but look at the EMA and decide whether you are trading with the trend or against it. In this case you would be against it so at best this trade would simply be a scalp or a hedge from a previous short. Also consider if this divergence is at a significant level on the 1 hour chart indicating a bounce to the long side.

If we insist on trying to getting started on a 5 min chart without referencing the potential opportunity on the 1 hour we are not going to get very far at all.

Look at the 1 hour chart below....

There was a bearish divergence at A.

1) So what does a divergence do? Answer it takes price across the EMA.
If it doesn't then watch out the market would be strongly bullish.
Now in this case the shorts were stop hunted to clear them out. So at this stage we too are stopped out for no loss if the stop has been moved correctly.

2) Why does price cross the EMA? Answer in this case to find bearish support for a down move.
Do the bears find support? Answer yes... So we are short trading below the average.
This is the stage 2 entry

3) Can we now find additional entries to the short side on the 5 min chart or even the 15 min chart? Answer Gazillions of them.

Stop this fixation with the 5 min chart without taking your cues from the 1 hour chart. By just referring to the 5 min chart only then you are simply looking for quick scalps.

Pulled up on H1 support line 2513 from April last year. Only looked just now lol.

This is what I was looking at in the H1 at that time (ignore the horizontal lines). Wouldn't this be considered a divergence where price happened to cross the EMA as well?

I apologize in advance if this is something very basic.

Yes but it was too early for the European volatility to begin... Remember the timing

Glad you said this because I don't have enough history to go back that far on the 1 hour chart.

Not sure if it will update back dated data, but just in case:

Menu>Tools>Options>Charts>Max bars in .......
You can type in a value higher than the drop down list.

Morning all, took these trades...1

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