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Trading the Cable swings via averages

  • #2,661
  • Apr 3, 2019 2:23am Apr 3, 2019 2:23am
and were the bull div on M5 and M15 the reason for entering? Thx
  • #2,662
  • Apr 3, 2019 2:24am Apr 3, 2019 2:24am
Just that I didn't take a Long because of divergence within the RSI's on H1
Trading S/R with PA only. No indicators anymore!
  • #2,663
  • Apr 3, 2019 2:25am Apr 3, 2019 2:25am
Personally I don't touch cable this period since brexit news are more important than anything. One comment and destroys analysis. I know Alan wont agree to that comment.
In the graph Alan posted above1.32 - 1.3220 lvl could be touched. (with such news even much larger targets could be achieved)
Alan posted again when I was writing
  • #2,664
  • Apr 3, 2019 2:34am Apr 3, 2019 2:34am
Quoting Jazz1964
Just that I didn't take a Long because of divergence within the RSI's on H1
I also had doubts Jazz and so didn't trade the long either. Nothing wrong with that as we learn with every day that goes by.

However, in hindsight and on my chart, the 4H did find bullish support with the 04h00 4H bar completion, and several 1H bearish div's before this occurrence had struggled/failed so should have been bullish for the trade. A good signal on the 5 min seems to have been at 8h45.
  • #2,665
  • Apr 3, 2019 2:54am Apr 3, 2019 2:54am
Quoting davidmaree
{quote} I also had doubts Jazz and so didn't trade the long either. Nothing wrong with that as we learn with every day that goes by. However, in hindsight and on my chart, the 4H did find bullish support with the 04h00 4H bar completion, and several 1H bearish div's before this occurrence had struggled/failed so should have been bullish for the trade. A good signal on the 5 min seems to have been at 8h45.
Yes, it was that 8:45 on M5 that gave a micro-tiny divergence within the indicators. and later on the bulls finding support.
Nice observations and thoughts on H4 (No bull support on my chart) and H1, good thinking.
Trading S/R with PA only. No indicators anymore!
  • #2,666
  • Apr 3, 2019 2:58am Apr 3, 2019 2:58am
Quoting huskyboy
and were the bull div on M5 and M15 the reason for entering? Thx
I am not trying to be rude here but I will put this in larger print...

1) At the appropriate time
2) Ask are we trading above or below the average.
3) If above, have the bulls found support
4) If yes, then we are long until the market says short.
  • #2,667
  • Apr 3, 2019 3:15am Apr 3, 2019 3:15am
Referring to my post 2647 yesterday. On the 60m chart I put up a scenario showing the price at 50% of a potential short target. The market fooled me initially because going long it had already passed the 50% but appeared to have failed. Today we have seen it go up to eventually hit the original long target. Lesson to be learned? Be very cautious at 50% target points.
  • #2,668
  • Apr 3, 2019 3:25am Apr 3, 2019 3:25am
Alan I have a question in the morning trade. As mentioned this period I dont trade cable, but I am looking it just not to loose the "touch". As others mentioned I was looking also the short option (just before the yellow vertical line - is Frankfurt open), because of the divergence, but market didn't give the opportunity to take it. The long option would have been the rejection of the EMA in the rectangle?
Was it another clue (in 5min chart) to take the long?
Attached Image (click to enlarge)
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  • #2,669
  • Apr 3, 2019 4:02am Apr 3, 2019 4:02am
Quoting forex_dimi
Alan I have a question in the morning trade. As mentioned this period I dont trade cable, but I am looking it just not to loose the "touch". As others mentioned I was looking also the short option (just before the yellow vertical line - is Frankfurt open), because of the divergence, but market didn't give the opportunity to take it. The long option would have been the rejection of the EMA in the rectangle? Was it another clue (in 5min chart) to take the long? {image}
It was full of clues. I keep repeating to you guys watch the average and compare it to the previous average. Don't compare price to average.
You just need to know if we are trading above the average or below it from a position of support,

See below the average is making HH's and HL's on the higher time frames price is trading above the average for the inference.
The bears tested the bull support a couple of time during the day but failed.
At our timeline we had a knot in the cotton so the bottoms of the rectangle were the buy points.
Attached Image (click to enlarge)
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  • #2,670
  • Apr 3, 2019 4:11am Apr 3, 2019 4:11am
I hope everyone got there 40 pips from the 5m div short.
Attached Image (click to enlarge)
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  • #2,671
  • Apr 3, 2019 4:20am Apr 3, 2019 4:20am
Quoting Nala66
I hope everyone got there 40 pips from the 5m div short. {image}
Even said won't trade, took from the divergence 20pips - real trade- (had target at around 40, but when I saw market stall at 60-64 lvl exited)

(That is more or less the trades I prefer. Leave London open to move the market and then looking for the counter trade)
  • #2,672
  • Apr 3, 2019 4:34am Apr 3, 2019 4:34am
Hi Alan,
You traded those two trades, one up and one down all the way until your targets hit without any hedge placed?
I saw bearish RSI div on way up.
Attached Image (click to enlarge)
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  • #2,673
  • Apr 3, 2019 4:40am Apr 3, 2019 4:40am
Quoting forex_dimi
{quote} Even said won't trade, took from the divergence 20pips - real trade- (had target at around 40, but when I saw market stall at 60-64 lvl exited) (That is more or less the trades I prefer. Leave London open to move the market and then looking for the counter trade)
well, from long term experience I can tell you that doesn't work.
I have the idea Alan's trading methodology is worthwhile to adopt
Trading S/R with PA only. No indicators anymore!
  • #2,674
  • Apr 3, 2019 4:44am Apr 3, 2019 4:44am
Quoting Jazz1964
{quote} well, from long term experience I can tell you that doesn't work. I have the idea Alan's trading methodology is worthwhile to adopt
I know (a lot of times London can fool you and have great continuations), that is why I am here, to improve my trades and that is the reason for asking the same questions over and over (in order to fully understand it.
  • #2,675
  • Apr 3, 2019 4:49am Apr 3, 2019 4:49am
Have also question if ABCD patterns exist in the charts below. (in the 1st one the divergence is clear, just asking for the ABCD pattern if it is correctly drawn.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: gbpusd-m5-international-capital-markets-2.png Size: 162 KB
  • #2,676
  • Apr 3, 2019 4:55am Apr 3, 2019 4:55am
there were 3 divergences in the target zone, how do we know which to enter?
Attached Image (click to enlarge)
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  • #2,677
  • Apr 3, 2019 5:05am Apr 3, 2019 5:05am
Quoting forex_dimi
{quote} I know (a lot of times London can fool you and have great continuations), that is why I am here, to improve my trades and that is the reason for asking the same questions over and over (in order to fully understand it.
That's very good. I wanted to take out your reserve to trust the method.
Yes GBP can possibly bring harm when it spikes over the stop. let's assume 500 pips... that's a few weeks trading profits. For me no problem, I don't trade overleveraged.
Trading S/R with PA only. No indicators anymore!
  • #2,678
  • Apr 3, 2019 5:15am Apr 3, 2019 5:15am
Quoting Jazz1964
{quote} That's very good. I wanted to take out your reserve to trust the method. Yes GBP can possibly bring harm when it spikes over the stop. let's assume 500 pips... that's a few weeks trading profits. For me no problem, I don't trade overleveraged.
I used to trade all gbp pairs (not together ) and I am used to (mentally) to big sl's. This method have small sl and good RR, but I think you must be able to draw correctly ABCD patterns (think they are very important here).
I must admit that I haven't fully understand this mechanism, that is why till now I am trying to work only with basic divergencies.
  • #2,679
  • Apr 3, 2019 6:12am Apr 3, 2019 6:12am
Quoting quangvision
Hi Alan, You traded those two trades, one up and one down all the way until your targets hit without any hedge placed? I saw bearish RSI div on way up. {image}
No, I only traded the long. Not that short I was done and dusted, not greedy.

As for the hedge. Yes there was an RSI div but I didn't see it or needed too. My trade was at BE + 1 pip with the TP at 40. I either get it all or get stopped out and walk away from the trade to let it do its thing.

The point of hedging is to double the account so we have money to play with, market money.

As I have explained in the Money Management. Start with what you want to be making daily i.e. $1000. Double that, then continue to make the 1K per day.

For me the entries are 1.8 lots which equates to $25 a pip. Times this by 40 and that becomes my 1K.
  • #2,680
  • Apr 3, 2019 6:20am Apr 3, 2019 6:20am
Quoting huskyboy
there were 3 divergences in the target zone, how do we know which to enter?{image}
All of them.
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