{quote} Yes that is correct. This locks up the profit. I then took another long trade below and remove the hedge as it past it so I was then hedged at the very bottom. The hedge is now off on the touch of the EMA
Ignored
Thanks, i actually placed a hedge on the first touch ( there was no div then) because of that 5min level and then closed and added the 2 sells. It was after this that I was watching the Bull div form. I noticed that the price fell further,
At what point would you of applied the hedge? the reason I ask as price kept falling below the 5 min level as the div was holding, or would you of placed the hedge straight away anyway confident it would return to the ema
Edit: actually maybe it doesn't matter because the trade was in profit, I would just be suspending the trade
life is a reflection of what we allow ourselves to see
{quote} Thanks, i actually placed a hedge on the first touch ( there was no div then) because of that 5min level and then closed and added the 2 sells. It was after this that I was watching the Bull div form. I noticed that the price fell further, At what point would you of applied the hedge? the reason I ask as price kept falling below the 5 min level as the div was holding, or would you of placed the hedge straight away anyway confident it would return to the ema Edit: actually maybe it doesn't matter because the trade was in profit, I would...
Ignored
That is a nice way to put it....
OK the next div was also bullish and easily made the ten pips, in fact I took 26 and I am done for the day.
{quote} Well what can I say I have shown numerous examples now of the various types of divergence. The trick is to find them where we expect them to be as the charts below clearly show. On the left 5min I have the EMA showing me where the swings are. The X symbol leads the EMA telling me to look for the divergence that may turn it around. The horizontal lines on the swings are the levels to be broken. When the average fails one side it tests the opposite side (which can also fail) The 5 min chart on the right shows me two types of divergence at...
Trading the Cable swings via averages
