{image} Price stopped exactly there
Trading the Cable swings via averages
- #2,484
- Mar 20, 2019 7:53pm Mar 20, 2019 7:53pm
- Joined Mar 2016 | Status: Trader | 6,382 Posts
Hi guys, Alan, this is a great system and way of "thinking", mmm sorry cold execution trading
I believe there is a difference between a system and being systematic. The former implies a hard and fast approach that could be coded to form a robot. The latter looks at all the variables that are constantly changing and thereby ridiculously difficult to code across all the time frames to boot.
By initially defining each element with words on the chart one learns to identify the possible ZOO points where trades can be taken with a tentative approach allowing for the fact we could be wrong. This is why the trade has staggered entries, we add to our position as confidence increases that we are correct. In respect of this all trades begin as scalps, progress to loaded trades and (if they don't reach our MM target) are hedged for insurance.
If we look at the 5 min chart below you will see that a 10 pip stop is plenty to take the initial tentative trade.
Look at the magenta lines that take the inference from the 1 hour chart.
Hi Alan,
I have something unclear about how to select which BC to draw AB=CD patterns and rule to invalidate them.
I attach here my chart on H1 with some AB=CD.
All I drew with rule to define BC as attacking pivot and pivot to attack. But not sure how to invalidate them to find another AB=CD to represent up-to-date situation.
Your idea needed, thanks Alan
I have something unclear about how to select which BC to draw AB=CD patterns and rule to invalidate them.
I attach here my chart on H1 with some AB=CD.
All I drew with rule to define BC as attacking pivot and pivot to attack. But not sure how to invalidate them to find another AB=CD to represent up-to-date situation.
Your idea needed, thanks Alan
- #2,487
- Mar 20, 2019 11:51pm Mar 20, 2019 11:51pm
- Joined Mar 2016 | Status: Trader | 6,382 Posts
Hi Alan, I have something unclear about how to select which BC to draw AB=CD patterns and rule to invalidate them. I attach here my chart on H1 with some AB=CD. All I drew with rule to define BC as attacking pivot and pivot to attack. But not sure how to invalidate them to find another AB=CD to represent up-to-date situation. Your idea needed, thanks Alan
An AB = CD is when we take for example the swing low of price followed by the swing high of price forming AB. Then we look for a 50% retrace of this AB to find C to be able now to form the lightning bolt AB = CD
Here is one on the 1m chart
{quote} I have no idea at all what you are trying to show on your chart. An AB = CD is when we take for example the swing low of price followed by the swing high of price forming AB. Then we look for a 50% retrace of this AB to find C to be able now to form the lightning bolt AB = CD
I am sorry not make my question clear for you.
Actually I am asking about ABCD pattern. The rule is to define BC as attacking pivot and pivot to be attacked.
But as I see at one time you can find several BC matching above rule so you may have several ABCD on your chart at the same time (like my posted chart).
That's why I am asking if we have any rule to apply one and remove other. And which rule to consider one ABCD pattern was outdated and should be removed.
Thanks
- #2,490
- Mar 21, 2019 12:13am Mar 21, 2019 12:13am
- Joined Mar 2016 | Status: Trader | 6,382 Posts
{quote} Hi Alan, I am sorry not make my question clear for you. Actually I am asking about ABCD pattern. The rule is to define BC as attacking pivot and pivot to be attacked. But as I see at one time you can find several BC matching above rule so you may have several ABCD on your chart at the same time (like my posted chart). That's why I am asking if we have any rule to apply one and remove other. And which rule to consider one ABCD pattern was outdated and should be removed. Thanks
