Trading the Cable swings via averages

Quoting 00PIP

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New to this thread, I've started reading through from the beginning. Does anyone have any tips, or is there anywhere in the thread where the method as a whole is summarised? I'm finding it hard to synthesise the bits I've picked up on into a complete whole.

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Quoting bridgstarr

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Hi I got it very wrong today and hoping you can help. On H1 in Asian session there was divergence, but price didn't make it across EMA, so I was expecting price to go down. On m5 I waited until EMA had moved out of the range, then took a short based on bearish support at point 1. After that it all went wrong. At point 2 I saw there was hidden divergence on M5, so could have hedged. However I still don't really have confidence with HD. But either way the points at 3, 4 and 5 would all have been places where I would have taken the hedge off (in reality...

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Quoting Dubtrader

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{quote} Here's what I have done so far, currently in a scalp short which I just closed no. 7 The only thing I have done differently really is to close entries 1 and 2 when we hit the HD, but it was also the same time we hit the H4 EMA. So a strong contender for a bounce IMHO and that's why I closed. The rest are just scalps. Price action is weak, plenty of HD's around. But yeah they need practice, well worth it though when you get the hang of them. {image}

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Quoting bridgstarr

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{quote} Looks like you've nailed it. Would you mind explaining a couple of things to me to help my understanding? At number three on your chart, you took a long scalp, but there was a divergence three bars later, but you held the trade, and price then resumed up - what was the rationale for ignoring the first divergence? At number four you got in then looks like you got out on the first divergence, but on number 5, I could draw a divergence for each pivot low (which would have caused me to close the trade), but you rode them out and took it further...

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Quoting bridgstarr

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Hi I got it very wrong today and hoping you can help. On H1 in Asian session there was divergence, but price didn't make it across EMA, so I was expecting price to go down. On m5 I waited until EMA had moved out of the range, then took a short based on bearish support at point 1. After that it all went wrong. At point 2 I saw there was hidden divergence on M5, so could have hedged. However I still don't really have confidence with HD. But either way the points at 3, 4 and 5 would all have been places where I would have taken the hedge off (in reality...

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Quoting Nala66

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Here is the 5 min drawn up. When we placed our entry we also set our stop. This entry was followed by two bear divs of no interest to us because had we taken them we would be adding to a losing trade. Later we find our 2nd entry and we are slightly in profit. It is important to see that this 2nd one is a div stopping the EMA making the HH. It does and then the bulls find support for our 3rd short entry and price runs to the target making the average LL. At the target D we get a bull div to take us back to the EMA but it failed to cross so expect...

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Quoting Nala66

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Here is the 5 min drawn up. When we placed our entry we also set our stop. This entry was followed by two bear divs of no interest to us because had we taken them we would be adding to a losing trade. Later we find our 2nd entry and we are slightly in profit. It is important to see that this 2nd one is a div stopping the EMA making the HH. It does and then the bulls find support for our 3rd short entry and price runs to the target making the average LL. At the target D we get a bull div to take us back to the EMA but it failed to cross so expect...

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Quoting bridgstarr

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{quote} Hi Alan I've been looking at the chart with the benefit of hindsight and I'm still struggling a bit. I can't convince myself that if the same thing happened again I wouldn't trade it something like the attached. At point 1 there is bearish divergence and everything else was pointing down, so i might short it there, getting stopped out before point 2 Re-enter at point 2 Add to the position at point 3 - my chart has the fast staying below the slow rsi. This entry will get stopped out Add to the position at point 4 due to RSI divergence. This...

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Quoting 00PIP

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Hi - what is a "Zoo point", and do you guys use a metatrader tool to draw the ABCD fork-looking thing? Thanks.

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Quoting Nala66

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{quote} This would be fine if we were to be trading the 5 min chart and making entries at the 1 min level. However this can lead to very quick trading with little profit. Look here at the 1 hour chart for direction... At upper target D there was a bearish div, a Zoo point to be traded at the 5 min level. This was followed by one heck of a battle common to the time of day. However our stop would have remained intact and we would have the 2nd entry at the bear support which then took us to the D2 target. Just because the signal starts on a particular...

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Quoting Nala66

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{quote} This would be fine if we were to be trading the 5 min chart and making entries at the 1 min level. However this can lead to very quick trading with little profit. Look here at the 1 hour chart for direction... At upper target D there was a bearish div, a Zoo point to be traded at the 5 min level. This was followed by one heck of a battle common to the time of day. However our stop would have remained intact and we would have the 2nd entry at the bear support which then took us to the D2 target. Just because the signal starts on a particular...

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