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Trading the Cable swings via averages

  • #761
  • Dec 21, 2018 6:22am Dec 21, 2018 6:22am
Quoting Bydyke
{quote} Squashing of RSI? This is how I enmeshed the RSI's on my MT4 platform. From the indicator list I uploaded the Relative Strength Index (Gold colour) with period 14. Then from the Indicator List under the Navigator section on the left hand side of the platform, I dragged RSI with period 5 (Dodger blue colour), from there over my trading area. With this, the two RSI are merged. I notice, however, that your fast RSI, ie, my dodger blue-coloured RSI is usually more expansive than my own. I wonder if it has to do with our different time zone....
I am not talking about the settings. I am saying the RSI is squashed making it hard to see. If you had zoomed out a tad and stretched it then it can be seen more clearly like this...
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  • #762
  • Dec 21, 2018 6:45am Dec 21, 2018 6:45am
Hi Alan,

is my Hidden Div correct?
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  • #763
  • Dec 21, 2018 7:46am Dec 21, 2018 7:46am
Quoting mickmack5
Hi Alan, is my Hidden Div correct? {image}
Hi there,
From what I learned from Alan's hidden div, I think your chart showing hidden div
  • #764
  • Dec 21, 2018 8:20am Dec 21, 2018 8:20am
Quoting Bydyke
{quote} Squashing of RSI? This is how I enmeshed the RSI's on my MT4 platform. From the indicator list I uploaded the Relative Strength Index (Gold colour) with period 14. Then from the Indicator List under the Navigator section on the left hand side of the platform, I dragged RSI with period 5 (Dodger blue colour), from there over my trading area. With this, the two RSI are merged. I notice, however, that your fast RSI, ie, my dodger blue-coloured RSI is usually more expansive than my own. I wonder if it has to do with our different time zone....
The more expansive RSI is usually due to
1. the RSI 5 being set to the previous indicator's data, or
2. the fixed minimum/maximum being set to 0 and 100.

Just a thought
  • #765
  • Edited 7:42pm Dec 21, 2018 12:48pm | Edited 7:42pm
Quoting pakeha
{quote} The more expansive RSI is usually due to 1. the RSI 5 being set to the previous indicator's data, or 2. the fixed minimum/maximum being set to 0 and 100. Just a thought

The 0 and 100 set are in place.

The problem I have is with 'previous indicator data.' The RSI box that has 'previous indicator data' is unable to merge with the original RSI, ie, period 14. Once I input, the second RSI, it opens separately below the first one and don't merge. That is why I use the method of drawing the second RSI from the navigator-side indicators to enable me merge the two RSIs
  • #766
  • Edited 4:12pm Dec 21, 2018 1:44pm | Edited 4:12pm
Quoting Bydyke
{quote} The 0 and 100 set are in place. The problem I have is with 'previous indicator data.' The RSI box that has 'previous indicator data' is unable to merge with the original RSI, ie, period 14. Once I input, the second RSI opens separately below the first one and don't merge. That is why I use the method of drawing the second RSI from the navigator-side indicators to enable me merge the two RSIs
ok. Make sure you drag the RSI 5 over top of the RSI 14. Then it should work. If you drag on the main chart then it will open a new indicator window.
  • #767
  • Dec 21, 2018 6:39pm Dec 21, 2018 6:39pm
Quoting Bydyke
That is why I use the method of drawing the second RSI from the navigator-side indicators to enable me merge the two RSIs
I would have thought that's the only way anyone could do it. You can not drag any indi from the Insert Menu. Also if you do not drag the indi over an existing "indi window" you do not get an option to use "previous indicator data".

In my case I use the navigator side panel for both the 14 and 5 RSI.
Good Trading
  • #768
  • Dec 21, 2018 7:28pm Dec 21, 2018 7:28pm
Quoting pakeha
{quote} ok. Make sure you drag the RSI 5 over top of the RSI 14. Then it should work. If you drag on the main chart then it will open a new indicator window.

That's exactly what I did. Thanks a lot. Am thrilled by the kind of friendship we have on this thread
  • #769
  • Dec 21, 2018 7:39pm Dec 21, 2018 7:39pm
Quoting aud
{quote} I would have thought that's the only way anyone could do it. You can not drag any indi from the Insert Menu. Also if you do not drag the indi over an existing "indi window" you do not get an option to use "previous indicator data". In my case I use the navigator side panel for both the 14 and 5 RSI.

I notice that you get the same result if you open the original RSI from the Indicator list and then drag the second RSI from the navigator over it as well as if you do both from the navigator side only.

Thanks too. For me, this is the best thread in FF. I'm yet to see any display of pride, insult and disrespect on this thread but these are very common in other threads.

On this thread, Alan recommends the attainment of 50 pips on a daily basis but from the posts of everybody that has understood the system, making 100 pips daily is a guarantee
  • #770
  • Dec 22, 2018 12:08am Dec 22, 2018 12:08am
Quoting mickmack5
Hi Alan, is my Hidden Div correct? {image}
Let's put it this way...It could well have been.

The problem is that we have to be at the PC to see it in order to determine if the RSI failed to make the HH also. Unlike price with its wicks and tails the RSI holds no history so just by looking backwards we cannot make the determination. This is why they are called hidden.
  • #771
  • Dec 22, 2018 1:05am Dec 22, 2018 1:05am
Quoting Nala66
{quote} Let's put it this way...It could well have been. The problem is that we have to be at the PC to see it in order to determine if the RSI failed to make the HH also. Unlike price with its wicks and tails the RSI holds no history so just by looking backwards we cannot make the determination. This is why they are called hidden.
I think I'm getting a better understanding of this.

In the past I've looked at some of your trades and couldn't work out how you got in so early. You do not wait for a candle to close when drawing divergence, on either the chart or RSI window?
Good Trading
  • #772
  • Dec 22, 2018 2:00am Dec 22, 2018 2:00am
Just a few words about the subject of divergence.

I'm sure everyone is aware of what a regular divergence looks like and by definition it is where...

Bearish 'Price makes the HH but the RSI does not (LH)'
Bullish 'Price makes the LL but the RSI does not (HL)'

Then we start to run into problems in regards to the naming of other forms of divergence.

For example if price makes a LH and the RSI makes a HH it is often referred to as a hidden divergence but there is nothing hidden about this at all. So others refer to it as a reversal but mostly these are continuation signals so this too becomes a tad confusing. You see where I am going with this, trying to find an adjective to cover all and sundry is very difficult without actually inventing one.

In effect any situation where the price is opposite to the indicator a certain type of divergence is formed so we could invent a noun and call it a Poi (price opposite indicator) and these three letters are next to each other on the keypad but backwards. Then we would need to add the terms bullish, bearish or hidden bullish, hidden bearish. Since bulls and bears both start with the letter b we cannot go any further expanding the noun.

Then we have RSI divergence where the fast is compared to the slow and has nothing to do with the price at all, only the measurement of strength and comparing the most recent with the more ancient. Then there is the subject of divergence formed by the price and the EMA which I don't think I have talked about here yet and there are two types of those also.

If you have followed what I have said hear then you probably have a good handle on the subject, if not then you are probably in for a headache, again.

Take a look at this 15 min chart where there are not one but 4 types of divergence. The grey and black bands are 50pips. Let's just read what we see and not what we think.

No 1) Price pushes up slightly past the previous pivot but the RSI does not so it is caught in divergence, snaps back to become a hidden divergence.

No 2) In making this early push it has left the EMA behind not giving in a chance to make the HH as it was way up there on the fast RSI also. This forms an EMA div. Price makes the HH, EMA LH

No3) The common garden variety div where price makes HH but RSI makes LH or flat in this case.

No 4) RSI div where the fast RSI is showing little left in the tank to get any higher.

The upshot of all this is the forced crossing of the EMA with the aim of making the swing low average. In this case it did this even before finding the bear support. Then the bears found support and price runs to the target just to make sure you got out.

These factors repeat time and time again, sure we get it wrong sometimes, that's the price we pay to play.

So something to think about over the holidays...
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  • #773
  • Dec 22, 2018 2:02am Dec 22, 2018 2:02am
Quoting aud
{quote} I think I'm getting a better understanding of this. In the past I've looked at some of your trades and couldn't work out how you got in so early. You do not wait for a candle to close when drawing divergence, on either the chart or RSI window?
Well actually I do wait but I wait at the lower time frame.

Some of the previous post may be a help to you here.
  • #774
  • Dec 22, 2018 1:07pm Dec 22, 2018 1:07pm
Alan

While I understand the concept of bull/bear support, I need some more clarification on how it fits into your strategy.

I understand the significance of the 26MA (the backbone) on the higher (say H1 or 15M) and the lower (say 5M when scalping) timeframes.

I understand the significance of a divergence (all types) on the higher timeframe and then waiting for a similar divergence to happen on the lower timeframe, and knowing that it is eiither with the higher timeframe trend or is counter-trend.

I understand the early entry when the divergence is unfolding on the lower timeframe, the timing of which is after the Frankfurt open (even though on some days moves may start in the 30-60 monutes prior to that).

If for example, the divergence signal is countertrend and price breaks above/below the 26MA, is the "bull or bear support bar" simply a confirmation that price likely will go higher/lower to the swing average target?
  • #775
  • Dec 22, 2018 8:46pm Dec 22, 2018 8:46pm
Quoting Nala66
{quote} Number 2 and 3 were hidden divergences as I explained in the text above. Yes you should always drop to the lower time frame to gain the advantage of these signal. ....
After spotting regular / hidden divergence on H1, if there is no divergence on M5 to place a trade, do you recommend to take the trade after H1 bar close? Or is it better to wait for EMA cross, confirm bear / bull support and then look for M5 divergence for entry? I mean do you prefer missing a trade (if there is no M5 signal) or taking a trade with a bigger risk based on H1 signal?

Merry Christmas,
Regards,
Blackeagle
  • #776
  • Dec 23, 2018 12:04am Dec 23, 2018 12:04am
Quoting pakeha
Alan While I understand the concept of bull/bear support, I need some more clarification on how it fits into your strategy. I understand the significance of the 26MA (the backbone) on the higher (say H1 or 15M) and the lower (say 5M when scalping) timeframes. I understand the significance of a divergence (all types) on the higher timeframe and then waiting for a similar divergence to happen on the lower timeframe, and knowing that it is eiither with the higher timeframe trend or is counter-trend. I understand the early entry when the divergence...
All that was very correct...

When one side finds support then that is a good additional entry point if ewe have not already got enough trades on to make our profit target.
  • #777
  • Dec 23, 2018 12:10am Dec 23, 2018 12:10am
Quoting Blackeagle
{quote} After spotting regular / hidden divergence on H1, if there is no divergence on M5 to place a trade, do you recommend to take the trade after H1 bar close? Or is it better to wait for EMA cross, confirm bear / bull support and then look for M5 divergence for entry? I mean do you prefer missing a trade (if there is no M5 signal) or taking a trade with a bigger risk based on H1 signal? Merry Christmas, Regards, Blackeagle
Once the 1 hour has made its mind up which way to go then it would be a very rare occasion not to find a supporting signal on the lower time frames.

This is not always a divergence, it may just be a matter of being oversold/overbought.

In the new year I will show some examples of additional entry signals..

nd yes sometimes I just cannot see a trade so I wait until I do.
  • #778
  • Dec 23, 2018 3:56am Dec 23, 2018 3:56am
Hi Alan,

a question regarding your MM.

As I understand you start with one trade and add trades once the trade goes into your favor. Then you move the initial trade to BE etc.

My question is, do you add ie. every 10 pips to the trade once it goes into your favor (grid style) or is it based on your reading of the live charts when in a trade?

Also do you put 3 trades on in total or more?

What is your average initial SL on the first trade - 10 pips for example?

Thanks and Happy Christmas.

PS: Thanks for all your time, this thread gets better and better...

PC
Less is more...
  • #779
  • Dec 23, 2018 5:40am Dec 23, 2018 5:40am
Quoting pipcruiser
Hi Alan, a question regarding your MM.
I can't really be too specific about the entries, sometimes there are only two pips between them and other times I have trouble getting the additional trades on.

I can't say whether the market is going to have a choppy start or sharp spike. So I try to determine what the likely target is and then try to get my trades all on at least 40 pips away from the target in order to have any hope of achieving the fiscal result. It is difficult to get three trades on sometimes let alone more. The point is to keep pushing for the result even if it fails to make the full amount.

Remember the trades go on at the rate of 1/6th 2/6th and 3/6th totalling 6/6th which is all in. Keeping the stop as tight as we can as we progress so our risk is kept to a minimum whilst we are pushing for the maximum return. Sure we are going to get stopped out and lose a little but this is well offset by the winners and getting multiple winners in a row makes those losers look like peanuts. Besides which a winning trade may be left to run on a tad more and pick up any losses made previously.

To ask what is the average stop is like asking how long is a piece of string, it is what it is. If the stop is too large then the lot size would have to be reduced or one may even pass on the trade, it is not compulsory to take a trade, we want probability on our side but we still don't want to risk too much. When a trade is going wrong simply close and await the next bus. The 108 trade is usually reliable in its push but we must always be prepared for those that are unstable.

We have to respond to what the market offers so we cannot set specific rules.
  • #780
  • Edited 9:20pm Dec 23, 2018 9:03pm | Edited 9:20pm
I'm just waking up to notice that PA had already done 40 pips from the day's gap. So, there's no waiting for line 108 today for action stations. May today, Christmas eve, be full of volatility.

At present, I am seeing as follows:
H1: Regular div - bearish
M30: Regular div - bearish
M15: Regular div and Alan's div - both bearish

Possible targets:
2765 - Average swing hi
2754 - Average swing lo
2721 - Average swing lo
2587 - Average swing lo
2534 - Average swing lo

We keep our fingers crossed
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