The measured target on the 1 hour is 3268 so once we get out of this range then that is probably where the GBP is heading.
Trading the Cable swings via averages
- #1,463
- Jan 30, 2019 2:48am Jan 30, 2019 2:48am
{quote} A text book trade... Well done
I am getting better at taking inference from the H1, that seems to be the most important aspect for me to adhere to.
In fact, most days I do not even look at the M5 and M1 before I see something on the H1 and H4. That has helped me to get better entries.
Cheers
- #1,464
- Jan 30, 2019 3:17am Jan 30, 2019 3:17am
- Joined Mar 2016 | Status: Trader | 6,382 Posts
{quote} Thanks Alan! I am getting better at taking inference from the H1, that seems to be the most important aspect for me to adhere to. In fact, most days I do not even look at the M5 and M1 before I see something on the H1 and H4. That has helped me to get better entries. Cheers
{quote} As I say I wouldn't worry too much about the 4 hour because the wicks alone can be lots of pips. {image}
Your screenshot was taken when market already moved. But back to when things were happening, how can you know H1 bar at 10:00 would be closed as an upbar?
Because if bar H1 closed as a downbar then spotted HD would be invalid. Please help me explain. THANKS
- #1,472
- Jan 30, 2019 6:04am Jan 30, 2019 6:04am
- Joined Mar 2016 | Status: Trader | 6,382 Posts
{quote} Hi Alan, Your screenshot was taken when market already moved. But back to when things were happening, how can you know H1 bar at 10:00 would be closed as an upbar? Because if bar H1 closed as a downbar then spotted HD would be invalid. Please help me explain. THANKS
- #1,473
- Jan 30, 2019 6:54am Jan 30, 2019 6:54am
- Joined Mar 2016 | Status: Trader | 6,382 Posts
{quote} Hi Alan, I spoted some RSI div in that chart. I'd like to ask you what would you do in each case: Bullish RSI div: we are long so we keep the trade Bullish RSI div: right after our short hedge. Would you close the hedge? Bearish RSI div: we are long, so we short hedge? Bullish RSI div: we close short hedge? Bearish RSI div: we are long. We short hedge here? If you hedge here and you dont put a stop loss up, it could eat a lot of profits since the price keeps going up. So what do we do in these cases? Edit: My biggest concern and worry here...
Lets take your first one... W e are currently long, have hedge and taken another long and removed the hedge when we run into that 1st div you have drawn.
This is a continuation bull div we could have taken another long but would we had had enough money to so? (maybe) But I am not looking for more longs I need to get the protective hedge on. ( This chart is showing how hedging works. )
Anyway we get to the short signal and then take the hedge trade which locks everything up again. This short should take the price back to the EMA but as you rightly point out there was a bull div. This is a problem but our trade is all locked up anyway so not a real worry and besides that the fast RSI is still below the slow which is actually another sell signal.
Finally price does get back to the EMA and runs into another bullish divergence so another long is taken and the hedge short is closed all stops move up to compensate. Now this div is actually two, it is a RSI div and a continuation div. This sends the price up to where you have the third div.
This is definitely a worry because we have hit the previous div target and run into a short one. At this point I would have just moved all the stops to the EMA level because this div should reach that But as luck would have it this div did not reach the EMA so now I am just trailing the stops along the EMA line.
The 4th was is in my direction so nothing to worry about. The 5th one never made it back to the EMA so no stop out.
Finally we get to the top with the RSI way up the top with a div showing so might as well close there.
OK that explains the moves but they are only there to show how to track and trade with hedges over this 11 hour period.
I would have been out on the very first long for my 40 pips.
If I had missed this trade then the first hedge would have been my trade and that second long would have been the hedge. It would have stopped out the short and then gone on to make my 40+ pips because of the measured move, about 60 pips.
It doesn't matter which trade we take we simply stay in the game long enough to make our 40 pips and if we have to hedge then we do so.
P.S. Phew!
{quote} When the bar pushed down it ran into divergence so the market jumps on it and pushes it back so it becomes a hidden divergence, you can't see it anymore it is hidden and the dis send the price back to the EMA so of course this ends up as a bull bar.
I bet there are other times bar pushed down then run into div so market jumps on it and pushes it up, you entry then it plumps back down hit your stop lost right on that same H1 bar. At close, it finishes as a down bar and of course when you come back you will not see it as HD because that is a down bar.
So Alan, don't you see there are such cases and we have to accept the losses? Or you still persist all cases finish as won trades?
Thanks
- #1,479
- Jan 30, 2019 7:49pm Jan 30, 2019 7:49pm
- Joined Mar 2016 | Status: Trader | 6,382 Posts
{quote} Hi Alan, I bet there are other times bar pushed down then run into div so market jumps on it and pushes it up, you entry then it plumps back down hit your stop lost right on that same H1 bar. At close, it finishes as a down bar and of course when you come back you will not see it as HD because that is a down bar. So Alan, don't you see there are such cases and we have to accept the losses? Or you still persist all cases finish as won trades? Thanks
