Trading the Cable swings via averages

Ok better clear up a few more things here.

For me a scalp is just 1 pip of profit which I call break even.

A hedge is a trade placed equal to the sum total of all the lots I am hedging so it is normally of far greater size than a scalp.

All trades begin as scalps, it is the progression that makes the difference. A scalp may or may not turn into a trade. The money management takes care of this..

Let me assume here that everything is done wrong and the trader is trying to profit from the longs. i.e.. the Bull Divs below the EMA.

1) Is a bull div and a long is entered. The expectation is to cross the EMA and the bulls to find support. As price approaches the EMA we move our stop to BE + 1 and 4 hours later we are stopped out.

2) Again a bull div, same expectation, same result stopped out for BE + 1

3) Again a bull div and a complete and utter loss.

4) Again a bull div but we have no entry because we are still losing number 3. Never add to losing trades.

5) Again a bull div and it was threatened by the hook but we are ok so far. When price approaches the EMA about X we move our stop to BE + 1 The rest is history as the trade takes off.

This is a winning situation even though we did everything arse upards by not taking the shorts This is why we have a money management plan in place.

I hope that covers any questions but if not fire away.

Hi Alan,
Just to say thanks for going to all this effort, very appreciated
Cheers...Des

Currently we are in limbo with the 1 hour. We have a signal but nothing happening just yet other than bouncing off the C point.

My hope is that you can follow what I have written. I know there is a lot to swallow but if it was easy we would all be rich hey!

Hi Alan

If I show you my thought processes, perhaps you could let me know where I might make improvements.

At position 1: M5 divergence at the right time, worth a punt.
2: Bull support? add to the position?
3: Bear RSI divergence M5, also divergence on H1. This caused me some confusion - wasn't sure whether to hedge, or whether H1 divergence signalled the end of the trade. I lost a few pips on the following few bars while I made up (and changed) my mind
4: Price touched H1 EMA, but didn't go below go below, in my head I'm thinking maybe the H1 div isn't going to send price lower
5: two HD divs on M5 made reconsider and I went short
6,7,8,9: hedges on and off
10: stopped out

When I saw the H1 Div at 3 should I have closed the long trade and then entered short on the M5 div/ m5 HD?
Was there something on higher timeframe telling me the short trade was likely to end? I didn't see it
Anything else I've missed?

As ever, comments gratefully received

Well I started a little later than you beginning by shorting from the tops as shown below.

If you look at that short (ending) relative to what was happening on the 1 hour you would or should have seen it was smack on the C point and in div on the 5 min.

Now I closed and quit there but really I should have not quit but either hedged or reset to go long.

Here we go south again...like a YoYo

Still stuck in this 1H range as I head off to bed...

On the 1H I see we are still stuck in the range between C and the 50% levels. HOWEVER something has changed here in the past couple of hours.

The bulls have found support and survived a test by the bears indicating we have bullish strength for the time being at least. Need to watch the European open today for clues.

Grrrr and what happens is the very next bar takes out the support.... Still a hopeless situation.

The problem I see here is that on the 4 hour price is trading below the C point but on the hour it is trading above he C point..

I am waiting for the situation to resolve itself.

Alan do you trade this situation?

No because I cannot pick the target yet but with a break I may be able to

What worries me is we could get a huge impulse bar in either direction and I would not like to be on the wrong side of it.

Better to just watch telly and wait for better times.

I need to learn this lesson - I always worry that I might miss the huge impulse bar and end up trading everything (and losing)

Look here at my 5 min chart... Heaps of targets but all so tiny

well its certainly out of the range, hopefully it stays out

It must have been waiting for me to go to bed.

any idea's about direction for now?