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Trading the Cable swings via averages

  • #4,421
  • Aug 22, 2019 11:33am Aug 22, 2019 11:33am
Hi Alan,
Some questions hopefully to get answers:
1/ What is "hook" bar? How to use it to get extra trades on?
2/ Why ABCD div where two pivots on the same side of EMA (or RSI) not used to plot D targets but only considered as bullish/bearish divs? How can we trade with those ABCD divs?
Thanks
  • #4,422
  • Aug 22, 2019 1:08pm Aug 22, 2019 1:08pm
Quoting Trade.Time
{quote} Hi blessedchuck I suggest you re-read post #4412 "I can't make any sense of your charts" Why? 1/- "Dark blue on black", solution - choose better contrasting colours. 2/- High low EMA's, solution - use ema's/sma's of the closing price. 3/- "Zoomed too far out", solution - zoom in. Some people will be reading this thread with large monitors, some with laptops, some with tablets and some just on their phones. The clearer and easier the charts are to read, the better for everyone. David
ok. thanks for explaining something so simple. i trade on a black background. but i will draw my divs in white and try to enlarge the chart.
  • #4,423
  • Aug 23, 2019 2:06am Aug 23, 2019 2:06am
Attached Image (click to enlarge)
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is this illegal to draw? Targetting ema. I dont see anything on H1
  • #4,424
  • Aug 23, 2019 2:35am Aug 23, 2019 2:35am
Quoting quangvision
Hi Alan, Some questions hopefully to get answers: 1/ What is "hook" bar? How to use it to get extra trades on? 2/ Why ABCD div where two pivots on the same side of EMA (or RSI) not used to plot D targets but only considered as bullish/bearish divs? How can we trade with those ABCD divs? Thanks
G'day

A hook is simply a retest of the div level. Often we may enter on the div and then try to get more lots on aiming to make the EMA but we get caught by the hook retest and this scares us out of the trade. Only then does it perform as we expected bummer hey!

It is only that I don't trust them when they are on the same side, sometimes they make the target other times they shoot way through it. You can still trade them using the ZOO points and trade the lower timeframe then.

All the time look for the inference on the higher time frame, look for the possible target level then trade the lower time frame in the direction you feel the inference is telling you. Even this is dangerous so we put the odds in our favour by testing the waters with a small trade and build on this with additional trades as we become more confident the trade is moving as planned.

In this fashion we are always aiming to put the odds highly in our favour for a large win with the minimum of risk.
  • #4,425
  • Aug 23, 2019 2:47am Aug 23, 2019 2:47am
Quoting huskyboy
{image} is this illegal to draw? Targetting ema. I dont see anything on H1
I would say so but then your 4 hour looks a lot different from mine.

I took that yesterday was an impulse bar the take the average up to the last swing high and today it has reached that. (yellow X)
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  • #4,426
  • Aug 23, 2019 2:51am Aug 23, 2019 2:51am
Attached Image (click to enlarge)
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H1 now
  • #4,427
  • Aug 23, 2019 3:10am Aug 23, 2019 3:10am
stil not clear for me what price is going to do? Below ema from H1 and lower, no bear support H1 yet, struggling around C where M5 just made a bullish divergence, so up towards ema? And now bear RSI/RSI.
  • #4,428
  • Aug 23, 2019 3:15am Aug 23, 2019 3:15am
Quoting huskyboy
{image} H1 now
Hi Huskyboy,
Do you have any tool to draw ABCD?
Btw I don't see any clear signal to trade on yet, of course ZOO points are similar yours on H1.
  • #4,429
  • Aug 23, 2019 3:21am Aug 23, 2019 3:21am
Quoting quangvision
{quote} Hi Huskyboy, Do you have any tool to draw ABCD? Btw I don't see any clear signal to trade on yet, of course ZOO points are similar yours on H1.
just the regular from MT4, triangle and trendlines
  • #4,430
  • Aug 23, 2019 6:32am Aug 23, 2019 6:32am
i can't trade this, afterwards yes, for real no -2. On it ema H1 and C from chart above
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  • #4,431
  • Aug 23, 2019 6:40am Aug 23, 2019 6:40am
Quoting huskyboy
i can't trade this, afterwards yes, for real no -2. On it ema H1 and C from chart above {image}
Yep looks like a Flat Friday again.
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  • #4,432
  • Edited 10:19am Aug 23, 2019 10:04am | Edited 10:19am
I hope I got this post right. the 1H chart here is showing bearish div at the 5m avg of 2272. And the 5m avg is reaching the swing high of 2251.
Attached Image
  • #4,433
  • Aug 24, 2019 3:50am Aug 24, 2019 3:50am
Quoting blessedchuck
I hope I got this post right. the 1H chart here is showing bearish div at the 5m avg of 2272. And the 5m avg is reaching the swing high of 2251. {image}
Not sure without seeing the M5 chart as well, and also not sure exactly what you are trying to tell us?

As I see it, on your H1 chart, the 26 ema has gone up, paused and now looks like it wants to continue up [the next swing high of the average is a long way up so nothing there to discourage it]. The price is above the ema so these 2 points suggest we should be looking to buy on M5. However, as you pointed out, there is an RSI divergence which could take us back to the ema so we can also be alert for sell signals on M5.

What happened?

When we check M5 there was an RSI divergence sell signal just after the hourly bar's close but it is very small - only 3 bars long [Alan, are we supposed to pay attention to such a short time signal? I guess 3 bars on a weekly or daily chart might mean something but a 5 minute?].
The M5 divergence took us back to the M5 ema, then gave a hook, then had another try but it didn't do much after that, so it ended up more of a scalp trade. On the H1 it didn't reach the ema. Instead, it resumed its upward journey.

A few bars further, on the M5 we had a couple of RSI buy divergences which could have given 40 pips profit.

Also, I notice that all this is happening about 108 bars AFTER bar 108! Perhaps that's the only time you are able to trade?
[But don't pay too much attention to me, I'm still reading my way through the thread, trying to get a clear picture of the overall process]
David
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  • #4,434
  • Aug 24, 2019 10:11am Aug 24, 2019 10:11am
Quoting Trade.Time
{quote} Not sure without seeing the M5 chart as well, and also not sure exactly what you are trying to tell us? As I see it, on your H1 chart, the 26 ema has gone up, paused and now looks like it wants to continue up [the next swing high of the average is a long way up so nothing there to discourage it]. The price is above the ema so these 2 points suggest we should be looking to buy on M5. However, as you pointed out, there is an RSI divergence which could take us back to the ema so we can also be alert for sell signals on M5. What happened? When...
thanks for analysis
  • #4,435
  • Aug 26, 2019 2:07am Aug 26, 2019 2:07am
Quoting blessedchuck
I hope I got this post right. the 1H chart here is showing bearish div at the 5m avg of 2272. And the 5m avg is reaching the swing high of 2251. {image}
You are not paying any attention to the start time.. The signal for the day was long, The second divergence you had is for you to close and quit for the day.
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  • #4,436
  • Aug 26, 2019 3:06am Aug 26, 2019 3:06am
Quoting Nala66
{quote} You are not paying any attention to the start time.. The signal for the day was long, The second divergence you had is for you to close and quit for the day. {image}
thanks
  • #4,437
  • Aug 26, 2019 3:31am Aug 26, 2019 3:31am
Attached Image (click to enlarge)
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Seeing this on M30, bear RSI/RSI M5 around ema H1 was entry; i was late at desk and my entry was even a bit later
  • #4,438
  • Aug 26, 2019 9:29am Aug 26, 2019 9:29am
Quoting blessedchuck
{quote} thanks
Same old same old...
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  • #4,439
  • Aug 26, 2019 9:44am Aug 26, 2019 9:44am
If the bears can break through A then a nice move down is expected as it attempts to drag the averages to a LL
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  • #4,440
  • Aug 26, 2019 4:25pm Aug 26, 2019 4:25pm
Quoting Nala66
{quote} Same old same old... {image}
Hi Alan, it's interesting that price turned around in between the upper 50% and 100% ABCD levels. In other words, it passed the 50% level but never made it the full distance. Is that unusual?

Question: Was the H1 inference bearish because of the regular bearish div about 12 hours earlier? (i.e. It was still sending price back to the EMA?)

Just checking I'm understanding things correctly.

Cheers
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