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Trading the Cable swings via averages

  • #4,301
  • Jul 24, 2019 11:35am Jul 24, 2019 11:35am
Quoting witowito
{quote} I think from what i see and read that there is an AB=CD pattern wich is a retracment of 50% +- a box... so u aim for that target... No Div need it in this scenario from what i remember from PDF {image}
I think I can understand your statement, but back to what Alan said originally, At C or just after that point we have a short signal in the form of RSI div, seems like there is a form of div, but I don't think I see it, and I want to get it right
  • #4,302
  • Jul 24, 2019 6:57pm Jul 24, 2019 6:57pm
Quoting luckyvictor
{quote} I think I can understand your statement, but back to what Alan said originally, At C or just after that point we have a short signal in the form of RSI div, seems like there is a form of div, but I don't think I see it, and I want to get it right
Which post are you talking about with the C?
  • #4,303
  • Jul 24, 2019 7:36pm Jul 24, 2019 7:36pm
Quoting witowito
{quote} I think from what i see and read that there is an AB=CD pattern wich is a retracment of 50% +- a box... so u aim for that target... No Div need it in this scenario from what i remember from PDF {image}
Plenty of signals on this chart. I have added in yellow.

AB = CD
ABCD
Directional divs to get in.
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  • #4,304
  • Jul 24, 2019 8:47pm Jul 24, 2019 8:47pm
I'm going out for the day and don't know when I will be back so here is a 1H chart for study.

You should be able to work out where the signals and targets are. The signals would all create ZOO points for trading considerations.

At the present this chart is in the process of forming an AB = CD and if it does break long then it will make the HH and drag the EMA to a swing HH also.

Note how I use the Quartile tool to find these AB = CD's.

If traded the entry is at the 50% with a stop at the 25% the target being 4 Quartiles making it a 1:4 risk/reward.
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  • #4,305
  • Jul 25, 2019 12:48am Jul 25, 2019 12:48am
OK for those still struggling with the ABCD triangle.

Clearly you should be able to see when the price closed above the EMA it was higher than all those pivots in the shaded box so A is the next pivot we look at.

Drawing a line from A to C and then comparing this line with the line drawn on the RSI for the same points we have the conflict we are looking for. A is on the underside of the average but C is on the topside. I keep saying that C does not have to be a pivot.

Now the next time a similar thing happens with the red line X to Y at the target point of the ABCD. This is just a regular bearish divergence to attempt to take price back to the EMA, which it did.

If price can cross and find support then we have a downward situation. If it cannot find bear support then the chances are high that it will make the HH than the divergence. To plot just how high we can use the AB = CD to give us a target.

So we have two types of divs looking very similar except for the difference being the EMA, opposite sides = ABCD, same side = regular divergence.
  • #4,306
  • Jul 25, 2019 3:34am Jul 25, 2019 3:34am
Quoting Nala66
{quote} Which post are you talking about with the C?
This C in here, and your original quote, and I struggle to see this RSI div, basically I don't know between which point I draw the line to reveal this div

At C or just after that point we have a short signal in the form of RSI div.
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  • #4,307
  • Jul 25, 2019 4:03am Jul 25, 2019 4:03am
Quoting luckyvictor
{quote} This C in here, and your original quote, and I struggle to see this RSI div, basically I don't know between which point I draw the line to reveal this div At C or just after that point we have a short signal in the form of RSI div. {image}
Yep gotcha.

The C on his drawing was in the wrong place, it should be like this...
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  • #4,308
  • Jul 25, 2019 4:33am Jul 25, 2019 4:33am
Quoting Nala66
{quote} Yep gotcha. The C on his drawing was in the wrong place, it should be like this... {image}
Now I see, thanks for the clarification.

Sorry that if I seem to chase on this, just don't want to keep silence and pretend that I understand it if I actually don't.
  • #4,309
  • Jul 25, 2019 4:48am Jul 25, 2019 4:48am
Quoting luckyvictor
{quote} Now I see, thanks for the clarification. Sorry that if I seem to chase on this, just don't want to keep silence and pretend that I understand it if I actually don't.
And that is the correct thing to do because I am shocking at reading minds.
  • #4,310
  • Jul 25, 2019 4:49am Jul 25, 2019 4:49am
Has anyone got any idea why this is sitting on the 50% retracement from yesterday. Flat as a tack
  • #4,311
  • Jul 25, 2019 5:17am Jul 25, 2019 5:17am
Quoting Nala66
Has anyone got any idea why this is sitting on the 50% retracement from yesterday. Flat as a tack
Big ECB statement around lunchtime, not sure if people sitting on their hands till then ?
  • #4,312
  • Jul 25, 2019 5:24am Jul 25, 2019 5:24am
Quoting des_b
{quote} Big ECB statement around lunchtime, not sure if people sitting on their hands till then ?
Trouble is I can't see any setups other than the possible AB =CD on the hout
  • #4,313
  • Jul 25, 2019 5:28am Jul 25, 2019 5:28am
That is interesting with the plus and minus. The plus takes it to a 1.618
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  • #4,314
  • Jul 27, 2019 11:25am Jul 27, 2019 11:25am
Can anybody please take a look and tell me if these abcd patterns are drawn correctly on my chart.
This is GBPUSD 4H chart.
TIA
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  • #4,315
  • Jul 28, 2019 2:56am Jul 28, 2019 2:56am
Quoting haris1211
Can anybody please take a look and tell me if these abcd patterns are drawn correctly on my chart. This is GBPUSD 4H chart. TIA {image}
Because you are using candles and not bars and you do not have the 1 period SMA to show the pivots it is difficult to read your charts.

All I can do is show mine.

The blue ABCD drawn here is one I wouldn't have regarded as an ABCD because both pivots A and C were on the same side of the EMA so I would have just regarded it as divergence. However it does appear to have travelled all the way to the D target.
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  • #4,316
  • Jul 29, 2019 1:39am Jul 29, 2019 1:39am
Quoting Nala66
{quote} Because you are using candles and not bars and you do not have the 1 period SMA to show the pivots it is difficult to read your charts. All I can do is show mine. The blue ABCD drawn here is one I wouldn't have regarded as an ABCD because both pivots A and C were on the same side of the EMA so I would have just regarded it as divergence. However it does appear to have travelled all the way to the D target. {image}
It's scary how accurate that pattern is... You could easily specialise in trading only ABCDs and do very nicely indeed.
  • #4,317
  • Jul 29, 2019 2:14am Jul 29, 2019 2:14am
Quoting k1w1
{quote} It's scary how accurate that pattern is... You could easily specialise in trading only ABCDs and do very nicely indeed.
Alan, regarding the third (smallest) triangle, what exactly is the C point? It doesn't seem to be a pivot or the close of the bar, and I don't think there was a con div on the RSI at that point?

Cheers
  • #4,318
  • Jul 29, 2019 2:50am Jul 29, 2019 2:50am
Quoting k1w1
{quote} Alan, regarding the third (smallest) triangle, what exactly is the C point? It doesn't seem to be a pivot or the close of the bar, and I don't think there was a con div on the RSI at that point? Cheers
That is the same thing i'm confused about.
  • #4,319
  • Jul 29, 2019 3:29am Jul 29, 2019 3:29am
Quoting k1w1
{quote} Alan, regarding the third (smallest) triangle, what exactly is the C point? It doesn't seem to be a pivot or the close of the bar, and I don't think there was a con div on the RSI at that point? Cheers
I have just moved all the colours out of the way so we can see the bar more clearly. I can't remember this since it was a while back it could have been weekend gappage. I don't know what happened there.
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  • #4,320
  • Jul 29, 2019 3:32am Jul 29, 2019 3:32am
With just a couple of days left in the month I am eying this. There is still about 500 pips to go.
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