Trading the Cable swings via averages

Hi Alan, do you still scalp entries when it's like this or sit on the side? always hard to judge when ema is with price

2 bullish divs on the 5 min

I try to but I keep my stops on the move as tight as possible

What's your opinion on this H1, Alan if I may ask?

The bears have just tested the Bull support on the hour, failed so far

This is probably a brokers dream market, I am 3 pips to the good but my broker would be about 6 for me doing it.

First Friday tomorrow so maybe the market is dead as it awaits the NFP and stuff.

Im not sure. May be waiting for ECB. Now, if any NFP is very slow.

Scalping mode right now.
I noticed that all 5 regular divergences worked out during this euro session.
1 and 2 are small continuation plays.
3, 4 and 5 are countertrend trades back to the ema (or hedges).

This may have a chance

Another choppy morning! tomorrow will likely be the same before NFP.

When you can find some time, Alan, can you please comment on this problem I face?
My bias was short because of the H4 (bears found support) and H1 with a 1.3111 target (post #2304).
So I should get in a sell.

But I stumble on pos.div in the M15.


At 12:30 my chart time, pos.div. is also to be found in the M5 (price touched the EMA after that).

This makes me hesitating and I passed on the trade.
Maybe I should have to get in before, but the chop would have been killing.

Can you say anything that helps me understanding...?

Seems I learned at least something

OK Jazz.

The first thing I did yesterday was to take a look at the daily chart to note where the average was and that was 3070.

Then I put a white horizontal line on the 1 hour chart at this level 3070. This gives me an idea of where the daily is heading.

Now I need to watch the 1 hour chart to see if there is anything to take me there and as you rightly pointed out there was indeed a continuation div some several hours before our vertical time period upon which we can form our ABCD.

Please note there is a difference between an ABCD and a AB = CD. The former is a triangle base on a continuation divergence and the latter is a lightning bolt based on a 50% retracement.

So you were correct in assuming you should be all the time short as your primary trade and signals to the long side should only be scalps or hedges to the shorts.

Let me put all this in a visual form on the hourly chart and then I will continue.

OK so from the above chart we can see what is potentially going on here.

a) Price has stopped at the daily average (white line)

b) The ABCD (Orange) has completed

c) We have an AB = CD (Aqua) suggesting we are going to break the daily average a tad.

d) The AB = CD has a plus or minus value in relation to the 50% level.

e) If we look at the + value we see price is heading for the green average swing low.

The result of this is our bias is still to the short side. So later today we would be looking for short signals as trade and long signals as scalps or hedges.

Now during the course of all this we are only looking for our slice of the action so we can quit work for the day and this short went well beyond that so on the hour a hedge wouldn't have been needed. However the hour chart is where we are taking our inference from, we trade this at the 5 minute level looking to buy and sell signals there.

Which brings me to ZOO points or Zones Of Opportunity which I will continue with.

ZOO points.

There are literally dozens of these to be looked at but let's just look at a few, namely any of the A, B, C, D points on the 1 hour chart.

Let's even boil it down just to the Aqua AB = CD. The same process is acted on whatever the ZOO point is.

Beginning with A what do we see? First off it was also the C point of a continuation div. This tells us nothing more than where to put our stop, a couple of pips above A but we need to get a signal to trade on the 5 min.

So what do we see and plot there... Exactly the same process forming more A, B. C. D's

Our A ZOO point on the hour chart produced our A point on the 5 min chart and you should find these points on the 5 min chart produce results on the 1 min chart but not for trades hey! maybe just to pinpoint an entry to keep the stop very tight. This 5 min produced over 20 pips counting the central hedge. However we still have our southern bias on the hour chart and may not yet have reached our daily target so we may hedge again at D and look for a retracement a 50% of AD and so on...

The trades, the signals, the procedures, the targeting, the hedging and so on are all the same.

One just has to pay strict attention to what is happening and respond accordingly with your plan of action until the goal is reached.

Then quit for the day because this is full metal jacket work and you will start to burn out, lose concentration and lose money.

Let me here a Amen

Amen
That's a clear process you described in full length. I am working on wiring my brain this way. Again thanks a lot for all time and effort in educating.
Let me get ready now for the day.
Success to all!

Amen!

The M15 has a neg.div. pointing to 1.3055
which is the top of the zone on Alan's lightning bolt in post #2314