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Trading the Cable swings via averages

  • #461
  • Dec 12, 2018 1:53pm Dec 12, 2018 1:53pm
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i have tried to start trades with a trend, now i prefer to follow the trend
  • #462
  • Dec 12, 2018 1:58pm Dec 12, 2018 1:58pm
Quoting Bydyke
{quote} You are making the same mistake as me before I was corrected by Alan. You should compare the price with the slow moving RSI and not with the fast one. With the great result you are now having, tell me another thread that is better than this one
Yestarday I read this entire thread but I still have difficutlies understaing it 100%. Could you be so kind to write the rules? Thanks very much
  • #463
  • Dec 12, 2018 4:54pm Dec 12, 2018 4:54pm
Quoting Nala66
{quote} This is good chart reading Rfs199. The inference from the 1 hour chart shows that the 5 min is not going to make the HH average so look for a minimum target of the 5 min swing low. Great stuff...
Alan, regarding that chart. The 1h chart divergence would mean that the price should cross the EMA to test the other side, right? That would mean HH, no? I'm not following you here, why it wouldnt make HH?

Another question, to identify a regular divergence, you can also use the fast RSI? Or only the slow one?

Thank you for your patience!
  • #464
  • Edited 6:23pm Dec 12, 2018 5:59pm | Edited 6:23pm
Quoting hocius
{quote} Alan, regarding that chart. The 1h chart divergence would mean that the price should cross the EMA to test the other side, right? That would mean HH, no? I'm not following you here, why it wouldnt make HH? Another question, to identify a regular divergence, you can also use the fast RSI? Or only the slow one? Thank you for your patience!
No you are correct the div sends it back across the EMA however they still have to find support to tackle the HH. The support on this occasion was a dodgy Doji.

You see sometimes a div sends it across the EMA but the opposition prevents them finding support and it crosses back again.

A good example is to look at the 4 hour now, div sent it across the EMA but the bears stopped any support forming by crossing back.

As to your second question.

When comparing price to the RSI only use the regular 14 period RSI.

You will find many more signals by using the RSI with itself (my preference) That is to say the Fast RSI is in conflict with the slow one.
  • #465
  • Dec 12, 2018 6:03pm Dec 12, 2018 6:03pm
Quoting jereajali
{image}
Hi jereajali, you may be using the template but you must not have downloaded and plugged in the coloured EMA so your template is not recognising it.
  • #466
  • Dec 12, 2018 6:18pm Dec 12, 2018 6:18pm
Quoting emicovi
{quote} Yestarday I read this entire thread but I still have difficutlies understaing it 100%. Could you be so kind to write the rules? Thanks very much
It is not a question of rules... React to the various elements I have outlined.

We have timing.
Higher time frame inference.
Entry signals
Hedge or exit signals
Targets.
Money management strategy.

The process is the same every single day.
  • #467
  • Dec 12, 2018 6:39pm Dec 12, 2018 6:39pm
Quoting Nala66
{quote} It is not a question of rules... React to the various elements I have outlined. We have timing. Higher time frame inference. Entry signals Hedge or exit signals Targets. Money management strategy. The process is the same every single day.
The only part that it’s unclear to me its the entry signal.
What do I have to compare? Price swings with fast or slow rsi?
  • #468
  • Dec 12, 2018 6:42pm Dec 12, 2018 6:42pm
Quoting jereajali
{image}
See how this type of divergence is not so reliable as it was in div several times before it kicked in to cross the EMA,

Just look how many signals there were on the RSI, here I show some of them however which way is the higher time frame telling us to trade. Should we be buying, selling or hedging. Where does it appear we are heading for, have we got there yet, does it look like a failure is on the cards.

Just taking divergence from the 5 min chart is only a part of the process of analysis.
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  • #469
  • Dec 12, 2018 6:58pm Dec 12, 2018 6:58pm
Quoting emicovi
{quote} The only part that it’s unclear to me its the entry signal. What do I have to compare? Price swings with fast or slow rsi?
OK ..

There are two types of divergence
1) Comparing price action to the 14 period RSI
2) Comparing the 14 period RSI to the 5 period RSI

It doesn't matter which occurs at the specified time suggesting a move in the direction inferred by the higher time frame
  • #470
  • Dec 12, 2018 7:06pm Dec 12, 2018 7:06pm
Quoting jereajali
{quote} It is in the template or it was shared separately cos am using the template. Anyway, i have my little modification i use personally to pick the right spots following the technique though.Have made 50% Profit on my live account since last week from this. Thanks to Nala for making me fall in love to divergence again, though this divergence is reformed
This is the result of trading at the right time for this pair and taking the correct action on the signals.

50% profit on a million dollar account, wow! you are doing great.
  • #471
  • Dec 12, 2018 7:13pm Dec 12, 2018 7:13pm
For some reason we seem to be dwelling on divergence.

The 26 period EMA is the backbone of this.
  • #472
  • Dec 12, 2018 9:08pm Dec 12, 2018 9:08pm
Quoting Nala66
For some reason we seem to be dwelling on divergence. The 26 period EMA is the backbone of this.
Alan

I think that people dwell on divergence because it is the key for entry/exits (i.e. trade management) rather than trying to understand and use all the elements of the overall strategy. The question from emicovi about the "rules" reinforced that.

Maybe a very short summary of timing; higher time frame inference; entry signals; hedge or exit signals; targets and money management would help get the discussion away from trade management only.

Just a thought.
  • #473
  • Dec 12, 2018 10:19pm Dec 12, 2018 10:19pm
Quoting pakeha
{quote} Alan I think that people dwell on divergence because it is the key for entry/exits (i.e. trade management) rather than trying to understand and use all the elements of the overall strategy. The question from emicovi about the "rules" reinforced that. Maybe a very short summary of timing; higher time frame inference; entry signals; hedge or exit signals; targets and money management would help get the discussion away from trade management only. Just a thought.
The entry could be something as simple as well oversold/overbought on the 5 min chart at a average resistance level on the hour.

I am definitely not going to rewrite all the stuff I have already written.
  • #474
  • Dec 12, 2018 11:09pm Dec 12, 2018 11:09pm
Quoting emicovi
{quote} Yestarday I read this entire thread but I still have difficutlies understaing it 100%. Could you be so kind to write the rules? Thanks very much
In this trade yesterday I had 1hr Divergence just behind me and then the 5min Div signals at the 5min Swing low with 3 different entries which I wasn't around for and entered late but still managed 45 pips
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  • #475
  • Dec 12, 2018 11:12pm Dec 12, 2018 11:12pm
My entry was late but because of everything I saw and the position of the RSI's it would more than likely move price away from the ema swing low UP
  • #476
  • Dec 12, 2018 11:29pm Dec 12, 2018 11:29pm
So the 1hr Divergence caused the 5min EMA to move off the previous 5min EMA swing low to go and make a HH again
  • #477
  • Edited 11:58pm Dec 12, 2018 11:45pm | Edited 11:58pm
Quoting Nala66
{quote} The entry could be something as simple as well oversold/overbought on the 5 min chart at a average resistance level on the hour. I am definitely not going to rewrite all the stuff I have already written.
If I get some time I will try and slap something together over the weekend that you could look at before posting.
  • #478
  • Dec 12, 2018 11:54pm Dec 12, 2018 11:54pm
Quoting Riaanvw
{quote} In this trade yesterday I had 1hr Divergence just behind me and then the 5min Div signals at the 5min Swing low with 3 different entries which I wasn't around for and entered late but still managed 45 pips {image}
Just a small point here...

Your 1st entry shown was good with the correct stop.

However I would not have taken that second entry just there because I would have been adding to a losing position.
  • #479
  • Dec 13, 2018 12:00am Dec 13, 2018 12:00am
Are you guys seeing a positive divergence on the H1 currently?
  • #480
  • Dec 13, 2018 12:09am Dec 13, 2018 12:09am
Quoting pakeha
Are you guys seeing a positive divergence on the H1 currently?
What we are seeing is a problem to be resolved on the hour.
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The bear div has not sent price back across the EMA (yet) So the bulls could still be in control?

Are the bulls going to make a HH with the EMA?
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