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Trading the Cable swings via averages

  • #1,721
  • Feb 11, 2019 4:37am Feb 11, 2019 4:37am
Quoting russian30
{quote} I took this divergence. {image}
Right after that div, there's a bearish RSI div
Attached Image
  • #1,722
  • Feb 11, 2019 4:37am Feb 11, 2019 4:37am
I thought it was the next valid signal to trade as I missed the initial HD because I wasn't at my PC.
  • #1,723
  • Feb 11, 2019 4:44am Feb 11, 2019 4:44am
Quoting russian30
I thought it was the next valid signal to trade as I missed the initial HD because I wasn't at my PC.
Even after that, you had more bearish signals. But I think the main problem here is you didn't look at the HT and what it is doing...
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  • #1,724
  • Feb 11, 2019 4:46am Feb 11, 2019 4:46am
Quoting hocius
{quote} Even after that, you had more bearish signals. But I think the main problem here is you didn't look at the HT and what it is doing... {image}
I see! Thanks.
  • #1,725
  • Feb 11, 2019 5:20am Feb 11, 2019 5:20am
Quoting russian30
I thought it was the next valid signal to trade as I missed the initial HD because I wasn't at my PC.
Hi, a friendly suggestion; never take a trade based on M5 time frame alone.
The backbone of this method is to take inference from a higher time frame.

As per the chart below, at the time of news, we were trading below the H1 ema.
Additionally we were trading below previous average low of 2928. And clearly the market was trying to reach the H4 level 2880 (as Alan pointed out in a post earlier today) and H1 level 2877.
And the third clue, the massive bearish bar (blue arrow).
These were 3 solid reasons to be short.

The only time you should take counter trend trades based on divergence on M5 is when price is at a former major level, preferably from a higher time frame.
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  • #1,726
  • Feb 11, 2019 5:22am Feb 11, 2019 5:22am
Quoting fxmars
{quote} Hi, a friendly suggestion; never take a trade based on M5 time frame alone. The backbone of this method is to take inference from a higher time frame. As per the chart below, at the time of news, we were trading below the H1 ema. Additionally we were trading below previous average low of 2928. And clearly the market was trying to reach the H4 level 2880 (as Alan pointed out in a post earlier today) and H1 level 2877. And the third clue, the massive bearish bar (blue arrow). These were 3 solid reasons to be short. The only time you should...
Thanks for the reply. This is great info for me. Many thanks.
  • #1,727
  • Feb 11, 2019 5:26am Feb 11, 2019 5:26am
I have lost all sense of what the market is doing.
  • #1,728
  • Feb 11, 2019 5:43am Feb 11, 2019 5:43am
On the 1 hour the bulls look like they are trying to stop the EMA for a double bottom.
  • #1,729
  • Feb 11, 2019 5:45am Feb 11, 2019 5:45am
Quoting russian30
{quote} Thanks for the reply. This is great info for me. Many thanks.
Did you move your stops to lock in some profit
  • #1,730
  • Feb 11, 2019 5:52am Feb 11, 2019 5:52am
The bulls have taken out the 5 min bear support with their bull support now being tested
  • #1,731
  • Feb 11, 2019 6:05am Feb 11, 2019 6:05am
Quoting Nala66
{quote} Did you move your stops to lock in some profit
I did. Just above breakeven.
  • #1,732
  • Feb 11, 2019 6:11am Feb 11, 2019 6:11am
So I'm guessing today would be classed as choppy?
  • #1,733
  • Feb 11, 2019 7:13am Feb 11, 2019 7:13am
Quoting russian30
So I'm guessing today would be classed as choppy?
Definitely
  • #1,734
  • Feb 11, 2019 4:40pm Feb 11, 2019 4:40pm
Well I awake to find the 1 hour made it at last. Good job else I would have been a liar hey!
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  • #1,735
  • Feb 11, 2019 4:43pm Feb 11, 2019 4:43pm
On the 4 hour too...
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  • #1,736
  • Edited 6:48pm Feb 11, 2019 6:10pm | Edited 6:48pm
Well done again Alan. As for the 4H, bullish regular divergence formed overnight (at your previous D point). Target for this one is around 3215.


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  • #1,737
  • Edited 8:41pm Feb 11, 2019 7:35pm | Edited 8:41pm
Quoting davidmaree
Well done again Alan. As for the 4H, bullish regular divergence formed overnight (at your previous D point). Target for this one is around 3215. {image}
David that large ABCD is drawn wrongly, there is no BC line on the RSI.

What you do have is a regular bullish divergence (the lower of the lines drawn on the RSI) which I would expect to fail because the EMA is trying to make the LL of that previous swing.
  • #1,738
  • Feb 11, 2019 9:00pm Feb 11, 2019 9:00pm
Quoting Nala66
{quote} David that large ABCD is drawn wrongly, there is no BC line on the RSI. What you do have is a regular bullish divergence (the lower of the lines drawn on the RSI) which I would expect to fail because the EMA is trying to make the LL of that previous swing.
Alan, when you say no BC line, that is because it cut through the RSI lows in the rectangle?

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  • #1,739
  • Feb 12, 2019 12:11am Feb 12, 2019 12:11am
Quoting davidmaree
{quote} Alan, when you say no BC line, that is because it cut through the RSI lows in the rectangle? {image}
Yes, we can't just make the lines fit.
  • #1,740
  • Feb 12, 2019 12:47am Feb 12, 2019 12:47am
Alan,
What do you think if this hidden divergence in H1 is gonna play the major role today ....
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