Attachments: Trading the Cable swings via averages

Trading the Cable swings via averages

#2,081
Feb 25, 2019 5:35pm Feb 25, 2019 5:35pm

Nala66
Joined Mar 2016 | Status: Trader | 6,378 Posts

I know all this seems complicated and it is at first but getting your head around these equilibrium swings will pay you dividends if you pay attention to them.

There is only so much money being traded although it may be trillions it only changes hands from one to the other and back again. Any new money printed does not affect the total sum because it is such a tiny percentage.

Most of this movement is hidden from the average trader as price tends to cover it up with its swings causing noise. Price may stretch it out over long periods again hiding the stuff we are interested in.

Here is a section of the 1 hour chart, see how many of you can pick the signal from it.

I am talking about the continuation div not the simple bear div at the top

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#2,082
Edited 7:02pm Feb 25, 2019 6:12pm | Edited 7:02pm

davidmaree
| Joined Apr 2017 | Status: Trader | 201 Posts

Quoting Nala66

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I know all this seems complicated and it is at first but getting your head around these equilibrium swings will pay you dividends if you pay attention to them. There is only so much money being traded although it may be trillions it only changes hands from one to the other and back again. Any new money printed does not affect the total sum because it is such a tiny percentage. Most of this movement is hidden from the average trader as price tends to cover it up with its swings causing noise. Price may stretch it out over long periods again hiding...

Ignored

Alan, bit of a mess chart-wise but I had 2 in this time (labeled 1 and 2). "x" was not needed/considered as 2 had not played out yet while "y" was divergent before the pivot but "cut through" on RSI before forming the eventual price pivot.

Edit: Just read your post about moves within moves so if I understand correctly "x" should've been considered.

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#2,083
Edited 7:53pm Feb 25, 2019 7:13pm | Edited 7:53pm

Bydyke
| Joined Sep 2009 | Status: Trader | 1,252 Posts

Our bull support has just been confirmed on M5. Am beginning to think 3147 might be too hot for the bears to handle; 3184 might be it

#2,084
Feb 25, 2019 9:21pm Feb 25, 2019 9:21pm

Nala66
Joined Mar 2016 | Status: Trader | 6,378 Posts

Take your pick

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#2,085
Feb 25, 2019 9:25pm Feb 25, 2019 9:25pm

russian30
Joined Oct 2013 | Status: Trader | 290 Posts

Quoting Nala66

Disliked

I know all this seems complicated and it is at first but getting your head around these equilibrium swings will pay you dividends if you pay attention to them. There is only so much money being traded although it may be trillions it only changes hands from one to the other and back again. Any new money printed does not affect the total sum because it is such a tiny percentage. Most of this movement is hidden from the average trader as price tends to cover it up with its swings causing noise. Price may stretch it out over long periods again hiding...

Ignored

Here's my attempt

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#2,086
Feb 25, 2019 9:50pm Feb 25, 2019 9:50pm

Nala66
Joined Mar 2016 | Status: Trader | 6,378 Posts

Quoting russian30

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{quote} Here's my attempt {image}

Ignored

Thanks for having a go.. You are however wrong, Have another try remembering to watch the pivot C is attacking.

Most people draw it like you have because it looks very pretty and seems to fit the hindsight. That is why I chose this one deliberately.

#2,087
Feb 25, 2019 10:35pm Feb 25, 2019 10:35pm

russian30
Joined Oct 2013 | Status: Trader | 290 Posts

To be honest I'm not sure what you mean by attacking the pivot but I will give it a go.

My reasoning behind drawing the setup like this is that the high I have used for point A is the next high that would be attacked by price at the close of the Div. Is that what you mean by attacking the pivot?

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#2,088
Feb 25, 2019 10:44pm Feb 25, 2019 10:44pm

simon.says
| Joined Nov 2018 | Status: Trader | 88 Posts

I'll give it a try

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#2,089
Feb 25, 2019 11:06pm Feb 25, 2019 11:06pm

simon.says
| Joined Nov 2018 | Status: Trader | 88 Posts

Quoting russian30

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To be honest I'm not sure what you mean by attacking the pivot but I will give it a go. My reasoning behind drawing the setup like this is that the high I have used for point A is the next high that would be attacked by price at the close of the Div. Is that what you mean by attacking the pivot? {image}

Ignored

Hey, I will try to give you an answer.

In the attached photo I have marked three different pivots. When you are drawing your ABC triangles you have to make sure that you are not jumping over one to make the line "fit". So using the photo as an illustration, if we begin looking at the top, then our line has to be matched with number 1, not number 2 or 3. If you are drawing it from number 1, then number 2 would be correct and so on.

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#2,090
Feb 25, 2019 11:37pm Feb 25, 2019 11:37pm

mikeeating
| Joined May 2018 | Status: Trader | 648 Posts

here is my guess

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life is a reflection of what we allow ourselves to see

#2,091
Feb 25, 2019 11:40pm Feb 25, 2019 11:40pm

forex_dimi
| Joined Mar 2010 | Status: Trader | 294 Posts

Would this ABCD fit the rule?
(forget divergences etc, just testing if picked the right A,B)
or the 2nd one?

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#2,092
Feb 25, 2019 11:50pm Feb 25, 2019 11:50pm

forex_dimi
| Joined Mar 2010 | Status: Trader | 294 Posts

or maybe this one too?
(I know it is annoying but ABCD correct drawing is essential to this system)

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#2,093
Feb 25, 2019 11:51pm Feb 25, 2019 11:51pm

mikeeating
| Joined May 2018 | Status: Trader | 648 Posts

Quoting simon.says

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I'll give it a try {image}

Ignored

would you of drawn the middle "yellow one" first and after that failed to break the lower "D" you would of the drawn/formed the larger "pink" one for level for the upward move?

life is a reflection of what we allow ourselves to see

#2,094
Feb 25, 2019 11:54pm Feb 25, 2019 11:54pm

mikeeating
| Joined May 2018 | Status: Trader | 648 Posts

Are these formations important because once a "ABC" forms and price starts to move " towards the lower or upper 50% or higher D then there is a high probability that it will go for them, therefore presenting a lower risk trade?

life is a reflection of what we allow ourselves to see

#2,095
Feb 26, 2019 12:03am Feb 26, 2019 12:03am

forex_dimi
| Joined Mar 2010 | Status: Trader | 294 Posts

And Alan I have also a question about the 2 bar test.
In the following picture I believe there is a divergence. (don't want to trade this, just to test the 2 bar test). Is this drawn correctly?

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#2,096
Feb 26, 2019 12:08am Feb 26, 2019 12:08am

Nala66
Joined Mar 2016 | Status: Trader | 6,378 Posts

Quoting simon.says

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I'll give it a try {image}

Ignored

This is correct...

It is not a choice we make to select the pivot, that is decided for us so there is no ambiguity choosing pivots. Sometimes C is not even a pivot as price just rockets to the target.

Once that low broke below the previous lows it was left in divergence with the very next low (the tiny one)

#2,097
Feb 26, 2019 12:12am Feb 26, 2019 12:12am

Nala66
Joined Mar 2016 | Status: Trader | 6,378 Posts

Quoting forex_dimi

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And Alan I have also a question about the 2 bar test. In the following picture I believe there is a divergence. (don't want to trade this, just to test the 2 bar test). Is this drawn correctly? {image}

Ignored

That is correct, so you have your entry and your stop is above the high and your target would be to cross the EMA where you may spot a continuation divergence sending price higher than the original divergence or they might find support and head south.

#2,098
Feb 26, 2019 12:18am Feb 26, 2019 12:18am