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Trading the Cable swings via averages

  • #3,081
  • May 16, 2019 1:32am May 16, 2019 1:32am
Testing lower 26EMA on H4 at 29287
  • #3,082
  • May 16, 2019 8:23am May 16, 2019 8:23am
Is this a valid setup?
Price got in H1 ema target with divergences.
M5 also had clear divergences. (RSI + Price)
2bar test.
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  • #3,083
  • May 16, 2019 10:04am May 16, 2019 10:04am
Quoting witowito
Is this a valid setup? Price got in H1 ema target with divergences. M5 also had clear divergences. (RSI + Price) 2bar test. {image} {image}
Okey i took couple of longs today wich fail. Probably cause i dont have the understanding yet of the way u read price and indicators at EMA...
I still reading the whole thread looking to get a deep understanding of the knowledge u are sharing. I have found at post 1360 one example wich could explain why my longs today wasnt valid...
Correct me if im wrong please.
This is today chart where u can see many divergeces in m5 when price was at h1 target EMA (red line)
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There was also h1 divergences at that point so i was expecting price to visit at least 26EMA(i attached pic in the post above)



POST 1360
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The thing is most of trades that i saw u took they started with both RSI or at least the Slow one in the other side of waterline at least for first entry...and then once the trade unfolds it cross the waterline
how can we reconize when is valid or not the divergence?

Or am i taking as a valid H1 EMA level comparing price to average?
Im a bit lost here i hope u understand my question.
Thnks
  • #3,084
  • May 16, 2019 8:47pm May 16, 2019 8:47pm
Quoting witowito
{quote} Okey i took couple of longs today wich fail. Probably cause i dont have the understanding yet of the way u read price and indicators at EMA... I still reading the whole thread looking to get a deep understanding of the knowledge u are sharing. I have found at post 1360 one example wich could explain why my longs today wasnt valid... Correct me if im wrong please. This is today chart where u can see many divergeces in m5 when price was at h1 target EMA (red line){image} There was also h1 divergences at that point so i was expecting price...
Yes I understand your question.

With a divergence we expect a return to the EMA and to even cross it and find support.

In this case you are looking at bullish divergences going against the trend so in effect these are either scalps (which can turn into trades) or hedges to protect the short entries..

When the divergence fails to cross the EMA you should expect a lower low.
When the bulls fail to find support expect a lower low.
When the bulls cannot hold onto the support expect a lower low.

Your assumptions were correct to go long but this is risky because it is against the trend so at best it is a scalp or a hedge.

You will be far better off not trying to fight the market and go with the signals that aim to continue the trending direction this is the most likely way to extract your profit and much more quickly if done at the right time (108).

Clearly you can see the 1 hour is trading below the average and on the 5 min chart there were many signals to take the shorts...not longs.

On the 5 min chart you posted with a green box on the RSI. The contents of this box were all shorts so I am at a loss to understand why you were long.

It is a common mistake to take a divergence and expect a good result when only 1 or 2 pips are there to be taken. This is why we have a three stage entry so we risk little. When trading below to EMA on the 1H look for the short entries on the 5 min it is the safer option.
  • #3,085
  • May 16, 2019 9:02pm May 16, 2019 9:02pm
It is a simple process.

Look below the 1 hour price is below the EMA dragging the EMA towards a lower swing low.

We see a signal both on the 1 minute and the 5 minute charts to say go short. Both of these also gave the indication to close i.e. 1M was a regular bull div and the 5M was an RSI bull div.
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  • #3,086
  • May 17, 2019 1:09am May 17, 2019 1:09am
Quoting Nala66
{quote} Yes I understand your question. With a divergence we expect a return to the EMA and to even cross it and find support. In this case you are looking at bullish divergences going against the trend so in effect these are either scalps (which can turn into trades) or hedges to protect the short entries.. When the divergence fails to cross the EMA you should expect a lower low. When the bulls fail to find support expect a lower low. When the bulls cannot hold onto the support expect a lower low. Your assumptions were correct to go long but this...
Thnks for the answer.

So the Idea is: Respect the main trend and better dont figh it maybe just hedge if I was already in a trade or look for quick scalp moving fast to BE.
I take notes and continue studing.
Cheers
  • #3,087
  • May 17, 2019 2:22am May 17, 2019 2:22am
Quoting witowito
{quote} Thnks for the answer. So the Idea is: Respect the main trend and better dont figh it maybe just hedge if I was already in a trade or look for quick scalp moving fast to BE. I take notes and continue studing. Cheers
Yep, all moves are preceded with some form of signal. we have to determine whether it is worth our trading it or not.
  • #3,088
  • May 17, 2019 2:24am May 17, 2019 2:24am
The 4 hour looks like it is attempting a lower average low
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  • #3,089
  • May 17, 2019 3:51am May 17, 2019 3:51am
Hey Alan are you working tonight? do you have a target ?
life is a reflection of what we allow ourselves to see
  • #3,090
  • May 17, 2019 4:01am May 17, 2019 4:01am
Quoting mikeeating
Hey Alan are you working tonight? do you have a target ?
Just observing tonight. I don't see much happening at all.

Looking at the hour chart I would be expecting price to hit those lower average levels.
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  • #3,091
  • May 17, 2019 4:06am May 17, 2019 4:06am
Quoting Nala66
{quote} Just observing tonight. I don't see much happening at all. Looking at the hour chart I would be expecting price to hit those lower average levels. {image}
its been a good week, in the NY session anyway
life is a reflection of what we allow ourselves to see
  • #3,092
  • May 17, 2019 4:14am May 17, 2019 4:14am
Yes but I am very tired because of it...I need a break.

This 1 hour has probably got better numbers than my drawing
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  • #3,093
  • May 17, 2019 4:26am May 17, 2019 4:26am
Quoting Nala66
Yes but I am very tired because of it...I need a break. This 1 hour has probably got better numbers than my drawing {image}
I definitely need to buy a new set up so I get the screen size for the deeper levels.

have good weekend, Maybe some fishing instead of trading next week
life is a reflection of what we allow ourselves to see
  • #3,094
  • May 17, 2019 4:35am May 17, 2019 4:35am
Quoting mikeeating
{quote} I definitely need to buy a new set up so I get the screen size for the deeper levels. have good weekend, Maybe some fishing instead of trading next week
I wish but her in doors insist I do some work around the house and garden and that is the only exercise I get.

The 4H is nearly there.
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  • #3,095
  • May 17, 2019 4:40am May 17, 2019 4:40am
Quoting Nala66
{quote} I wish but her in doors insist I do some work around the house and garden and that is the only exercise I get. The 4H is nearly there. {image}
If i dont remember bad I think I have read u advicing people to remove EMA pivot after being broken right?
Is there any reasson why u keep them?
Thnks
  • #3,096
  • May 17, 2019 5:00am May 17, 2019 5:00am
Quoting witowito
{quote} If i dont remember bad I think I have read u advicing people to remove EMA pivot after being broken right? Is there any reasson why u keep them? Thnks
That is not me keeping them it is in the programming to just stop it extending when broken.

On my hand drawn charts I remove them
  • #3,097
  • May 17, 2019 5:11am May 17, 2019 5:11am
Quoting Nala66
{quote} That is not me keeping them it is in the programming to just stop it extending when broken. On my hand drawn charts I remove them
Oh sorry i did not notice that
Thnks for the aclaration.
  • #3,098
  • Edited 9:46am May 17, 2019 8:45am | Edited 9:46am
Playing some hindsight practicing ABCD pattern i found this ones... are they valid?
And also a question I have. whats the diference between ABCD and AB=CD ¿??
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  • #3,099
  • May 18, 2019 4:14am May 18, 2019 4:14am
GBPUSD 1 Day / 1 mn

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  • #3,100
  • May 18, 2019 4:23am May 18, 2019 4:23am
GBPUSD 3 Months / 60 mn
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