Trading the Cable swings via averages

Quoting luckyvictor

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{quote} still going through your 'notes' let say on H1 the price is below 26EMA for a long while, is there a point that where we may stop shorting and to go long to avoid/catch the potential reversal? Is it only done by trying? i.e. putting a hedge long trade and it then turns into our main trade and we close our initial short trade? Also, why do you pick 26 for the EMA? is there any market psychological/behaviour reason? or 26 is just the best match for GBPUSD? Thanks for your sharing

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Quoting luckyvictor

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{quote} Hopefully you can correct my thinking. So in the attached, I have used two red arrows to show the entries, they are valid entries as far as RSI is concerned, after seeing RSI has made a U turn, it is likely to buy at the end (the high) of these candles and see a retracement of its own candle length. How should keep my stop loss as tight as possible, or I enter at better price?

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Quoting Nala66

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{quote} Look at the 1 hour chart carefully and you tell me what you see in the area I have circled {image}

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Quoting Nala66

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The next question about the 26EMA. If you observe the RSI 50% level you will find it is exactly the same as the 26 period EMA. So if we see the bulls or bears finding support above or below the EMA we will also have that same support above or below the RSI 50% level.

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Quoting Nala66

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{quote} There is no attached

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Quoting Nala66

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Well that was exciting hey!. {image}

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Quoting luckyvictor

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{quote} So the bulls has initiated their attack to the North, does it mean that for the next few hours, as long as the price is not below the 26EMA, we should primary trade for buy signal, and only treat the short signal as hedge, unless the short signal appears near the history average swing high? I may have worry that I would be chasing high/low, and when I finally wait for a pull back, it is actually when/where the trend starts to reverse

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Quoting Nala66

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{quote} Yes currently the bulls are looking for support on the 1 hour chart. All the price swings on the 1 hour are ZOO points with respective entries on the 5 minute chart {image}

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Quoting luckyvictor

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{quote} What is Zoo point please? I might have missed the post or not yet reached that post

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Quoting witowito

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{quote} There is way to go yet but step by step i am understanding better and better the mechanics... About measured moves u can take a look at the pdf and read it couple of times(page87), u will understand it, its easy. Pdf has helped me a lot to deeply understand everything, i read the whole thread and the Pdf couple of times so concepts are good enough in my mind, just need to put them im practice to act like a robot and remove my feelings or thoughts. just trade what I see.

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Quoting Nala66

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{quote} ZOO= Zone Of Opportunity

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Quoting luckyvictor

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{quote} Where may I find the PDF please? Just recently dive into this thread

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Quoting huskyboy

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{quote} post 2760

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Quoting luckyvictor

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{quote} Thanks. Actually is it right to say that you only trade the divergence (at least for the primary trade) which also means you are catching a change of trend?

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Quoting Nala66

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Here is the 5min chart showing the flow of indicators I use. Beginning at X we have an RSI div so the long is taken expecting to make the EMA, it does and we win. At the EMA the con/div is formed to give us the triangle abc and our target D. This is a short to D and we win. At 2 we have a bull div and it fails to make the EMA we are long so we get stopped out and lose. At 3 we have a bull div which does take us to the 5 min EMA and then onto the 15 min ema but does not find support so we close for the win at 4. At 4 we have a possible con/div but...

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