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Trading the Cable swings via averages

  • #1,321
  • Jan 25, 2019 1:34am Jan 25, 2019 1:34am
Bullish 5m divergence for the hedge in the screenshot Alan.
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  • #1,322
  • Jan 25, 2019 1:36am Jan 25, 2019 1:36am
Did you manage to get all three stages in before bearish support Alan?
  • #1,323
  • Jan 25, 2019 2:10am Jan 25, 2019 2:10am
Quoting davidmaree
Did you manage to get all three stages in before bearish support Alan?
I am only using a single entry of 1.8 lots ($25) just now and I added another short to get the job done. All out now.

That was just lucky price did not get back far enough to stop me out.
  • #1,324
  • Jan 25, 2019 2:12am Jan 25, 2019 2:12am
David I only use the 3 stage entry to make my first 1K after that I have enough risk money to go at it with just the one entry.
  • #1,325
  • Jan 25, 2019 2:17am Jan 25, 2019 2:17am
Quoting Nala66
David I only use the 3 stage entry to make my first 1K after that I have enough risk money to go at it with just the one entry.
Understood, thank you Alan.
  • #1,326
  • Jan 25, 2019 2:25am Jan 25, 2019 2:25am
Alan, the first trade is more or less obvious. The 2nd one mentioned was after the 5min 26ema rejection?
The exit was just profit target or 1h 26ema?
  • #1,327
  • Jan 25, 2019 2:56am Jan 25, 2019 2:56am
Quoting forex_dimi
Alan, the first trade is more or less obvious. The 2nd one mentioned was after the 5min 26ema rejection? The exit was just profit target or 1h 26ema?
OK you got the first as being obvious and that was a divergence..

A divergence will usually return the price to the EMA so we have a distance we can measure very simply. On the 1 hour it was something like 45/50 pips or so. Now we ask can we make our profit from that? If yes then we know exactly by simple calculation what we need to do for lot sizes,

It may not always go directly from A to B so we have to be prepared to hedge the trade for whatever time that requires to protect the profit. We then watch for it returning to the path and pocket our hedge profit so now the actual target for us has been reduced by that hedged profit.
  • #1,328
  • Jan 25, 2019 2:59am Jan 25, 2019 2:59am
That is why I missed the hedge because I was expecting the 1 hour to run to the EMA which it di.
  • #1,329
  • Jan 25, 2019 3:01am Jan 25, 2019 3:01am
Quoting Nala66
{quote} OK you got the first as being obvious and that was a divergence.. A divergence will usually return the price to the EMA so we have a distance we can measure very simply. On the 1 hour it was something like 45/50 pips or so. Now we ask can we make our profit from that? If yes then we know exactly by simple calculation what we need to do for lot sizes, It may not always go directly from A to B so we have to be prepared to hedge the trade for whatever time that requires to protect the profit. We then watch for it returning to the path and pocket...
And please remember, not all hedges turned into profit. Some will cost as lost trades and there are no way to avoid all lost hedges but just trade as market tells.
  • #1,330
  • Jan 25, 2019 3:18am Jan 25, 2019 3:18am
I know you have answered such questions a lot in the past (but unfortunately I learn by examples). I think the first trade might have been in the 1st rectangle. Would you consider a 2nd one on the next rectangle? In that one do we have a hidden divergence?
In the 2nd picture was this long valid? Was it divergence or was trying to find a trade?
(don't care about the outcome, at this point want to understand the theory)
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  • #1,331
  • Jan 25, 2019 3:20am Jan 25, 2019 3:20am
Quoting quangvision
{quote} And please remember, not all hedges turned into profit. Some will cost as lost trades and there are no way to avoid all lost hedges but just trade as market tells.
This is true however you have several options when this happens...
1) You can add the loss to your pip target.. or
2) You can add another lot to pay for it and close this when you have covered the loss.

I guess the best thing is to have a just in case plan always in your head so you are ready to react if needed.
  • #1,332
  • Jan 25, 2019 3:39am Jan 25, 2019 3:39am
Quoting forex_dimi
I know you have answered such questions a lot in the past (but unfortunately I learn by examples). I think the first trade might have been in the 1st rectangle. Would you consider a 2nd one on the next rectangle? In that one do we have a hidden divergence? In the 2nd picture was this long valid? Was it divergence or was trying to find a trade? (don't care about the outcome, at this point want to understand the theory) {image} {image}
Most of what you say here is correct however the first entry is the div itself.

Normally I would try to get the three trades on in ten pips but this moved so fast there was no chance to do it.

That is ok though because we can still adjust the trade to make the correct profit target by adding an extra trade and you are correct with the HD an option for an extra trade.
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  • #1,333
  • Jan 25, 2019 3:41am Jan 25, 2019 3:41am
Notice in the above charts how the 2 and 3 entries are when the fast RSI forms a peak under the slow RSI
  • #1,334
  • Jan 25, 2019 3:52am Jan 25, 2019 3:52am
The 1st entry was the break of the green bar?
Was trying to understand the 3rd till you mentioned the peaks under. The 2nd 3rd entries are the green bar or the red ones after them (like 2 bar test mentioned in the past)?
Sorry for such questions, but 1st want to create the mechanism in my head.
  • #1,335
  • Jan 25, 2019 3:53am Jan 25, 2019 3:53am
hi,
Has the 108 bar thing been discontinued?
For me, I interpreted it as not to trade before 9AM UK-time.
I haven't noticed 108 being used recently.
  • #1,336
  • Jan 25, 2019 3:54am Jan 25, 2019 3:54am
Quoting forex_dimi
I know you have answered such questions a lot in the past (but unfortunately I learn by examples). I think the first trade might have been in the 1st rectangle. Would you consider a 2nd one on the next rectangle? In that one do we have a hidden divergence? In the 2nd picture was this long valid? Was it divergence or was trying to find a trade? (don't care about the outcome, at this point want to understand the theory) {image} {image}
I see from the second chart that it appears you have taken the bullish divergence as your trade whereas this should have been a hedge to the short trade. The reason is that if the div fails because there is no inference from the 1 hour then that bullish div is going to wear a lower low, which it did.
  • #1,337
  • Jan 25, 2019 3:59am Jan 25, 2019 3:59am
Quoting obiwandax
hi, Has the 108 bar thing been discontinued? For me, I interpreted it as not to trade before 9AM UK-time. I haven't noticed 108 being used recently.
Not at all look back at post 1318 and you will see them there or if I post the 5 min here you will also see them. Remember this is the approximate time to start.
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  • #1,338
  • Jan 25, 2019 4:05am Jan 25, 2019 4:05am
Quoting Nala66
{quote} I see from the second chart that it appears you have taken the bullish divergence as your trade whereas this should have been a hedge to the short trade. The reason is that if the div fails because there is no inference from the 1 hour then that bullish div is going to wear a lower low, which it did.
The trade was purely for testing my understanding to the divergences. With your answer you made clearer the hedging mechanism you are pursuing
  • #1,339
  • Jan 25, 2019 4:08am Jan 25, 2019 4:08am
Quoting forex_dimi
{quote} The trade was purely for testing my understanding to the divergences. With your answer you made clearer the hedging mechanism you are pursuing
That's OK as long as you understand the process.
  • #1,340
  • Jan 25, 2019 4:10am Jan 25, 2019 4:10am
OK lets do a little test of all you guys to see if you understand the difference between and EMA and an SMA and how this affects what I term the impulse bar.

Anyone like to take a stab at it.
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