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Trading the Cable swings via averages

  • #3,821
  • Jun 28, 2019 6:36am Jun 28, 2019 6:36am
Just took 1 trade today.... Great week, Thanks again Alan for this awesome thread...
have a great weekend, ill show some entries on the upcoming trades, as my MT4 is giving me troubles today
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  • #3,822
  • Jun 28, 2019 6:56am Jun 28, 2019 6:56am
Quoting Nala66
Where is the 5 min going? Guess! {image}
I actually short the market before this impulse jump, where the price cluster, there was a rsi div I believe. Obviously got stop out.

Did I actually act correctly? Or it should not be the place the hedge the long?
  • #3,823
  • Jun 28, 2019 7:22am Jun 28, 2019 7:22am
Quoting huskyboy
Jaz, great trades you made. Would you mind sharing your tpl? Thx
Here you go
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File Type: zip Trading the Cable swings via Averages.zip   32 KB | 698 downloads
Trading S/R with PA only. No indicators anymore!
  • #3,824
  • Jun 28, 2019 10:06am Jun 28, 2019 10:06am
Quoting luckyvictor
{quote} I actually short the market before this impulse jump, where the price cluster, there was a rsi div I believe. Obviously got stop out. Did I actually act correctly? Or it should not be the place the hedge the long?
Can you post a picture of that trade?
Trading S/R with PA only. No indicators anymore!
  • #3,825
  • Jun 28, 2019 1:30pm Jun 28, 2019 1:30pm
Quoting Nala66
{quote} How many times do I have to say immediately. I am watching and seeing this looks like it is going to close in a div...waiting, waiting YES! CLICK I am in
Thanks Alan, crystal clear now

Cheers
  • #3,826
  • Jun 28, 2019 1:45pm Jun 28, 2019 1:45pm
Quoting Jazz1964
{quote} Can you post a picture of that trade?
Sure, I should have done it, and later I took another one, and failed again.

Reason for my actions:
1. H1 fast RSI is above 80, so i drill down to M5 to look for bear div opportunity.
2. M5 did show bear div, so hedge the long.

I guess the first one did return to EMA, and stop right at the 26EMA at M5, but the second one failed.

I mean I don't mind it stopped out, as long as I act right.

And I know probably it is too late to trade in the day anyway, i.e. target profit has been pocketed, but all these are learning experience for me.
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  • #3,827
  • Jun 28, 2019 3:48pm Jun 28, 2019 3:48pm
Quoting luckyvictor
{quote} Sure, I should have done it, and later I took another one, and failed again. Reason for my actions: 1. H1 fast RSI is above 80, so i drill down to M5 to look for bear div opportunity. 2. M5 did show bear div, so hedge the long. I guess the first one did return to EMA, and stop right at the 26EMA at M5, but the second one failed. I mean I don't mind it stopped out, as long as I act right. And I know probably it is too late to trade in the day anyway, i.e. target profit has been pocketed, but all these are learning experience for me. {image}...
Here are some notes on your picture
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Trading S/R with PA only. No indicators anymore!
  • #3,828
  • Jun 28, 2019 4:54pm Jun 28, 2019 4:54pm
Quoting Jazz1964
{quote} Here are some notes on your picture {image}
Jazz, appreciate for your note!!

Please allow me to have some questions

1. Why that point is H1 ZOO? is it a previous swing high/low?
2. You said my red line is penetrated by the green RSI 14, so if it is penetrated, it can not be used for making div decision?
3. I have actually "corrected" my red line on price and RSI to show my 'believed' bear div, so based on the above, it is penetrated, so is not valid, is it correct?

and some side questions if you dont mind
1. Would you trade on smartphone? is there any good app (either platform app or broker app) on iphone/android? I found that MT4 app is very limited.
2. Is there any way to get instant notification of reply on this thread? I can not find forexfactory on Tapatalk. I am just very in to thread (method) and I am learning something new (closer to the core) of this method every day! so attached to it.
3. If you dont mind, may I ask which broker do you use please?

Many many many thanks for your sharing! have a good weekend!
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  • #3,829
  • Jun 28, 2019 6:17pm Jun 28, 2019 6:17pm
Quoting luckyvictor
{quote} Sure, I should have done it, and later I took another one, and failed again. Reason for my actions: 1. H1 fast RSI is above 80, so i drill down to M5 to look for bear div opportunity. 2. M5 did show bear div, so hedge the long. I guess the first one did return to EMA, and stop right at the 26EMA at M5, but the second one failed. I mean I don't mind it stopped out, as long as I act right. And I know probably it is too late to trade in the day anyway, i.e. target profit has been pocketed, but all these are learning experience for me. {image}...
I fail to understand why you insist on looking for shorts when you are clearly trading above the average. You should be looking for longs of which you have none at all displayed on your chart.
  • #3,830
  • Jun 28, 2019 11:47pm Jun 28, 2019 11:47pm
Quoting luckyvictor
{quote} Jazz, appreciate for your note!! Please allow me to have some questions 1. Why that point is H1 ZOO? is it a previous swing high/low? 2. You said my red line is penetrated by the green RSI 14, so if it is penetrated, it can not be used for making div decision? 3. I have actually "corrected" my red line on price and RSI to show my 'believed' bear div, so based on the above, it is penetrated, so is not valid, is it correct? and some side questions if you dont mind 1. Would you trade on smartphone? is there any good app (either platform app...
From your post #3822, I understand you were long, and you are aware the target was reached. But here we talk about how to hedge.

On your new picture, I see in your first circle you draw the lines below the price in a rising market. That's wrong, it should be drawn on Close prices at the upside, just like the RSI line. I get the idea that you have to work on knowledge before you can start to push the button.

1. Why that point is H1 ZOO? is it a previous swing high/low? It's the high of the first bear support below the EMA.
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2. You said my red line is penetrated by the green RSI 14, so if it is penetrated, it can not be used for making div decision? Correct.
3. I have actually "corrected" my red line on price and RSI to show my 'believed' bear div, so based on the above, it is penetrated, so is not valid, is it correct? I don't see a correct drawn bear div on your corrected chart. The RSI you draw is penetrated thus not valid.

Trading this from a smartphone, that's not possible, you never can see the details IMHO. I wonder if you understand how focused you need to be. One computer screen is not enough for me since I want to see the white charts and the black charts. I rather would have three screens.
I have no idea about FF instant mssgs when a new reply is added.
I trade with ICMarkets. They are just good enough for me.
Trading S/R with PA only. No indicators anymore!
  • #3,831
  • Jun 29, 2019 1:32am Jun 29, 2019 1:32am
Quoting Nala66
{quote} I fail to understand why you insist on looking for shorts when you are clearly trading above the average. You should be looking for longs of which you have none at all displayed on your chart.
Thanks for questioning me.

This is because in early London time, price was still below 26EMA on H1 and as time passes, it hovered just around the 26EMA.

Also,i think I failed to see a clear bull div clearly at that time, although I might have seen it now.
  • #3,832
  • Jun 29, 2019 1:45am Jun 29, 2019 1:45am
Quoting Jazz1964
{quote} From your post #3822, I understand you were long, and you are aware the target was reached. But here we talk about how to hedge. On your new picture, I see in your first circle you draw the lines below the price in a rising market. That's wrong, it should be drawn on Close prices at the upside, just like the RSI line. I get the idea that you have to work on knowledge before you can start to push the button. 1. Why that point is H1 ZOO? is it a previous swing high/low? It's the high of the first bear support below the EMA. {image} 2. You...
Thanks for correcting me, I think I missed out this key characteristic, "when the RSI is penetrated, it can not be used for making div decision".

The reason I asked the trading platform is, I don't usually have time to see in front of the computer to do this trading, I previously asked whether this can be done in higher TF, obviously yes, but not that effective, and has to have a bigger stop. Just wondering whether i can find a way to trade it while i work in office.

Thanks for this community, people are really helpful, hopefully the post of my questions and help others as well, learn from my mistakes.

Wish a good weekend for everyone.
  • #3,833
  • Jun 29, 2019 2:22am Jun 29, 2019 2:22am
I thought these guides my be of interest to some. They were copied from another thread that Alan posted a while back before he started this thread. They are simplistic and nothing has changed. If you can understand these then you may have a better chance and a reason to make an entry.

1) Compare average to average, not price to average

2) If the RSI is at the top most or lowest most and the average has a long way to go then it will likely fail and turn around.

3) Once the average breaks a previous level then it will likely turn to test the opposite

4) is the same as 3 except price fails to break higher/lower

5) When travelling above an average we are trending up and should be looking for further long entries.

6) Opposite of 5.

7) Watch for divergence once these levels are reached often a tell tale of a turn around.

8) Get the stop to at least BE so you can relax and watch the trade unfold.
  • #3,834
  • Jun 29, 2019 6:35am Jun 29, 2019 6:35am
Quoting MrMagnet
I thought these guides my be of interest to some. They were copied from another thread that Alan posted a while back before he started this thread. They are simplistic and nothing has changed. If you can understand these then you may have a better chance and a reason to make an entry. 1) Compare average to average, not price to average 2) If the RSI is at the top most or lowest most and the average has a long way to go then it will likely fail and turn around. 3) Once the average breaks a previous level then it will likely turn to test the opposite...
Thanks for these summary.

I am confused of 3 and 4, should it mean if the average break the previous level, it may travel in the same direction, otherwise if it fails to break the previous level, meaning not able to make HH or LL on terms of average, it will turn around and make HH or LL in the opposite direction
  • #3,835
  • Jun 29, 2019 9:03pm Jun 29, 2019 9:03pm
Quoting luckyvictor
{quote} Thanks for these summary. I am confused of 3 and 4, should it mean if the average break the previous level, it may travel in the same direction,
It can but not always. Refer to 7.

Quoting luckyvictor
{quote}
otherwise if it fails to break the previous level, meaning not able to make HH or LL on terms of average, it will turn around and make HH or LL in the opposite direction
It can but not always. Refer to 7.
  • #3,836
  • Edited 9:38pm Jun 30, 2019 7:32pm | Edited 9:38pm
Alan, I was wondering... Given we enter a trade the instant we notice divergence, how do we avoid entering too early? I've borrowed one of your charts below which shows an earlier valid divergence entrance that would have been stopped out. Can we avoid this sort of situation?

Cheers

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  • #3,837
  • Jun 30, 2019 10:11pm Jun 30, 2019 10:11pm
Quoting k1w1
Alan, I was wondering... Given we enter a trade the instant we notice divergence, how do we avoid entering too early? I've borrowed one of your charts below which shows an earlier valid divergence entrance that would have been stopped out. Can we avoid this sort of situation? Cheers {image}
You can't really avoid these situations if you just trade from the 5 min chart without a ZOO point on the higher time frame.

We want to give ourselves a higher probability.

Check to see if the second one was at such a level on the higher time frame.
  • #3,838
  • Jun 30, 2019 10:37pm Jun 30, 2019 10:37pm
Good day all, the market started to move earlier than I did.
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Trading S/R with PA only. No indicators anymore!
  • #3,839
  • Jun 30, 2019 10:45pm Jun 30, 2019 10:45pm
Quoting Jazz1964
Good day all, the market started to move earlier than I did. {image}
Yes a bit early so maybe nothing in this. Plenty more signals to come as we start day one of the new fiscal year.
  • #3,840
  • Jun 30, 2019 10:52pm Jun 30, 2019 10:52pm
I am starting with $500
Target $25 a day minimum x 20 days
Three entries $1, $2 and $3

Have set up my diary to log the trades and the reasons for taking them.

The 108 bar for me is 3:30pm

So all systems are go for gold....
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