Trading the Cable swings via averages | Page 218 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

GBP/USD

Similar Threads

Identifying Market Swings - Medium and Long Term Trading 619 replies

Trading With Moving Averages 72 replies

Moving Averages Zone Trading 10 replies

HELP! GMMA (Guppy's Multi-Moving Averages) Trading Mehod 3 replies

Via indicator: trading xxxyyy via zzz 0 replies

Attachments: Trading the Cable swings via averages
Exit Attachments

Trading the Cable swings via averages

  • #4,341
  • Jul 31, 2019 6:15am Jul 31, 2019 6:15am
Quoting Nala66
{quote} Because in real time you would not have known there was going to be a next one and this one was in divergence.
Hi Alan

I can understand why huskyboy had the question.

so equally, why do you take that bar at C and not the one before?

I think it is also in divergence.

Many thanks
  • #4,342
  • Jul 31, 2019 6:31am Jul 31, 2019 6:31am
Quoting luckyvictor
{quote} Hi Alan I can understand why huskyboy had the question. so equally, why do you take that bar at C and not the one before? I think it is also in divergence. Many thanks
You just answered your own question. Think about what you said here.

I keep telling you there is a difference between a divergence and an ABCD divergence.

Can you not see that one straddles the EMA and the other doesn't.

There was also divergence at the B point sending price back to the EMA. This was met by the div you are speaking of which failed to make a LL.

Look at this 1H chart there are short divergence's all over the show but they are not ABCD's because the A an C pivots are all on the same under side of the EMA.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 42 KB
  • #4,343
  • Jul 31, 2019 7:33am Jul 31, 2019 7:33am
Quoting Nala66
{quote} You just answered your own question. Think about what you said here. I keep telling you there is a difference between a divergence and an ABCD divergence. Can you not see that one straddles the EMA and the other doesn't. There was also divergence at the B point sending price back to the EMA. This was met by the div you are speaking of which failed to make a LL. Look at this 1H chart there are short divergence's all over the show but they are not ABCD's because the A an C pivots are all on the same under side of the EMA. {image}
Understand, let me repeat it in my own word.

In this scenario, we had observed a top (A) in the history, and this top is under EMA, when the market opens and trading happens, we see a bar (C) that closes above the EMA, but at this point of time, the price is still lower than A, whereas RSI is already higher than the time at A, therefore we can search for the lowest RSI point between the time A to C to identify B, and draw our ABCD div. And of course, at this time, we don't know whether C is the best point to draw the ABCD div, as the next bar may also close below A (attacking A) and above EMA and RSI is still higher than A, and if it does happen, we can update our old ABCD div drawing.
  • #4,344
  • Jul 31, 2019 8:31am Jul 31, 2019 8:31am
It doesn't get more accurate than this.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 45 KB
  • #4,345
  • Jul 31, 2019 8:34am Jul 31, 2019 8:34am
Quoting luckyvictor
{quote} Understand, let me repeat it in my own word. In this scenario, we had observed a top (A) in the history, and this top is under EMA, when the market opens and trading happens, we see a bar (C) that closes above the EMA, but at this point of time, the price is still lower than A, whereas RSI is already higher than the time at A, therefore we can search for the lowest RSI point between the time A to C to identify B, and draw our ABCD div. And of course, at this time, we don't know whether C is the best point to draw the ABCD div, as the next...
Well at last you got it...Well done.

If that next move is still in the same div with A then a range is made for price to aim for. I usually take the lowest target to be on the safe side.
  • #4,346
  • Jul 31, 2019 8:38am Jul 31, 2019 8:38am
Now look at the 1H and see how much freedom of movement the bulls have created.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 45 KB
  • #4,347
  • Jul 31, 2019 8:40am Jul 31, 2019 8:40am
The bulls can now set a high RSI level to hide behind from all those previous pivots. No longer will we have a line of sight to them.
  • #4,348
  • Jul 31, 2019 9:21am Jul 31, 2019 9:21am
Now I can clean up the 15M chart as being completed..
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 67 KB
  • #4,349
  • Jul 31, 2019 1:10pm Jul 31, 2019 1:10pm
Can we consider this one as a valid ABCD after price has completed first ABCD target you showed in your last post.
Attached Image (click to enlarge)
Click to Enlarge Name: abcd.PNG Size: 66 KB
  • #4,350
  • Jul 31, 2019 7:19pm Jul 31, 2019 7:19pm
Quoting haris1211
Can we consider this one as a valid ABCD after price has completed first ABCD target you showed in your last post. {image}
Nope... We cannot just chop through data like that on your RSI. The line has to have a clear line of sight.
  • #4,351
  • Jul 31, 2019 8:00pm Jul 31, 2019 8:00pm
Here on the 30 min chart one has just completed in the short direction.

Things to note are...

A was a bear divergence, a good ZOO point to consider.

This was followed by the HOOK which in this case was a hidden divergence.

C was right on the EMA when it ran into divergence with B. Completing the ABCD

Price paused at the 50% level which is regarded as the quite time of the market.

The start of the Asian session completed the journey.

Thing to consider... Because C was exactly on the EMA we would have to consider this may have just been a regular div and thus no particular target level.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 51 KB
  • #4,352
  • Aug 1, 2019 2:07am Aug 1, 2019 2:07am
Do we only trade once we have an ABCD target?
  • #4,353
  • Aug 1, 2019 3:44am Aug 1, 2019 3:44am
I could only figure this ABCD out on 5 min chart.
Attached Image (click to enlarge)
Click to Enlarge Name: abcd1.PNG Size: 59 KB
  • #4,354
  • Aug 1, 2019 4:13am Aug 1, 2019 4:13am
Quoting Nala66
Now look at the 1H and see how much freedom of movement the bulls have created. {image}
Alan, could you please explain this chart a bit further? I'm not sure I've seen you post on this before.

It looks like you use a trendline on the RSI to establish a target for price?

Cheers
  • #4,355
  • Aug 1, 2019 5:05am Aug 1, 2019 5:05am
Quoting haris1211
I could only figure this ABCD out on 5 min chart. {image}
Well done it just hit your short target

See not that hard UH!
  • #4,356
  • Aug 1, 2019 5:06am Aug 1, 2019 5:06am
Quoting k1w1
{quote} Alan, could you please explain this chart a bit further? I'm not sure I've seen you post on this before. It looks like you use a trendline on the RSI to establish a target for price? Cheers
I was just showing how high the RSI could climb without running into divergence of those earlier pivots.
  • #4,357
  • Aug 1, 2019 5:09am Aug 1, 2019 5:09am
Quoting haris1211
Do we only trade once we have an ABCD target?
Not at all, they are just one of several ways to plot a target price.

We need to have
Timing
Entry
Stop
Target
To constitute a trade situation.
  • #4,358
  • Aug 1, 2019 5:19am Aug 1, 2019 5:19am
Right, this is my take on this 60m chart. (Apologies to Alan for not having a one period RSI)

The black lines on the price and 14 RSI gave me a set up which meandered about somewhat first coming down to 50% of the lower pink box, fooling me into going long to just past 50% of the upper pink box. Price eventually came back and has just hit my original target being the bottom of the lower pink box.

The blue lines on the price and 14 RSI have given me a further set up to take the price down to the bottom of the yellow box.

The green lines have given me a further target lower down in the shape of an ABCD. Notice A and C are on opposite sides of the 26 EMA.

Remember this is my take, not Alan's. Let's see what he makes of it?
Attached Image (click to enlarge)
Click to Enlarge Name: GU 1.8.19.jpg Size: 552 KB
  • #4,359
  • Aug 1, 2019 5:30am Aug 1, 2019 5:30am
Here you go
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 244 KB
  • #4,360
  • Aug 1, 2019 5:48am Aug 1, 2019 5:48am
Quoting Nala66
Here you go {image}
what is the significance of this pivot and actually why is it a pivot please?
2 traders viewing now