Trading the Cable swings via averages

Quoting simon.says

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Hey guys, So one of the issues I often run into is picking the “wrong” divergence. I am sure many of you know the feeling of following the signals and take on positions either short or long as the divergence is signinaling, only to see that price continues to push in the same direction. To me, it looks like the ones who have gotten a better grasp of this strategy have been able to work out ways to deal with this. Attached is a picture showing regular divergences (orange) and rsi divergences (red). As you can see, from the time the first divergence...

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Quoting davidmaree

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{quote} This is a good question Simon and absolutely 2-bar tests are good for entries. However, an important lesson for me was to accept losses as well. Alan's method is especially forgiving of these because of the insane reward for getting it right. Throw in the additional pips that hedges give and you can pay for several stop outs very quickly. Other useful spots for entries in this type of PA is previous high/low swings of the average and also ABCD 50% levels or D points (see Alan's post https://www.forexfactory.com/showthr...9#post11991329...

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Quoting russian30

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Morning all, I have a question. When drawing an ABCD pattern from a continuation divergence on the 1hr is is correct to derive the pattern from any type of divergence? i.e would the following image qualify? or should we only use a chart price and rsi based divergence to derive the pattern. Thanks. {image}

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Quoting mikeeating

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Is this HD? {image}

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Quoting mikeeating

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Is this HD? {image}

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Quoting davidmaree

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{quote} Mike, in the attached a pivot was formed where the yellow trendline begins. Price then dips and comes back to that level so on that bullish candle labeled "check here for HD" if at any time (no need to wait for close) price was higher than the pivot of interest while RSI was lower that is an HD. In this case it ended up being a regular divergence as price rose slightly higher. I believe this would've been an HD but I missed it and entered after regular divergence. {image}

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