Trading the Cable swings via averages

Well I wasn't trading yesterday but this morning I see price on the 1 hour has finally reached its target after setting up on Monday and only completing on Friday.

This is a long time to execute a setup making one wonder if the market is in a slow down for the time of year.

We are now awaiting a new setup on the hour chart. Note how price closed for the week exactly on the target.

Price is now sitting exactly on the 4 hour 50% level to D.

Bit iffy to determine if it will push across or retrace back a little. Good ZOO point to keep an eye on.

On the 1 hour we see a rejection of the bear div so it looks like price is heading for the average swing high at 2947.. This would mean a cross on the 4 hour so maybe a push to the 3001 D target is on the cards.

Sorry I have the wrong price on that 4 hour chart above.

It should look like this below...

Had a bad start this morning. My Mt4 Terminal froze up, had to keep shutting it down. Eventually after repeated problems had to remove all the charts and load them up again. Took one short on the way up because of bearish div on M15 got stopped out. Waited until we hit the target on H4 and then shorted for 25 pips.

Currently watching the M30 where a bearish div is forming. I will probably take that as a scalp short.

Well it's been a while since we had a signal on the 1 hour and look what happens... Price ranges between the two 50% levels.

The general trend is up so I would be looking to take the longs for a continuation

And for what is relatively a long time the D2 is hit...

It would appear now that the market has slowed to a crawl. Already 10 hours in and this move has only completed about 8 pips.

It is taking far to long to make targets for my liking indicating lack of market interest for the time of year...

Much better when we are moving at a pip per minute rather than a pip per hour.

The AB =CD took it to the average swing low which was also the daily R2 pivot...Nice trade..

Phew! Glad I went to bed because I would have expected more of a pull back towards the EMA which didn't happen.

It now looks like a holding position as we wait for the EMA to catch up and make the LL..

The blue AB = CD's on the left are where I was explaining to someone how I spot and measure them, thought I would leave them on for you all.

These are very common swings of sentiment that balance equally and very nicely. They are so common that between the two triangle ABCD there are two more AB = CDs, see if you can spot them.

Hi Alan, what is the criteria for making an A and B point with the AB+CD measurement? And at what point would you say the C point has retraced too far and has failed?

This is a good question for a change...

A and B are simple the swings we do not know yet if they are to be AB = CD.

So we watch for the pull back approaching but not crossing the 50 %.

We look for the entry there and our stop is the other side of the 50% i.e. very tight.

Here on this 1 hour chart there are two green ones with a possible magenta one setting up but now that has turned into an ABCD triangle

So now we are left with this...

The EMA failed to make the LL so we would expect an attack on the HH now. (1 hour)

hi Nala66, what number is GU going to go to?

Well we would be expecting a test of the 2934 so if that is the case we look for long entries on the 5 min chart.

If price breaks below the C point then we would be considering short entries to 2817

Sorry I missed a level at 2919

See if I put in all the signals how complex it gets with all the lines.

What we have here is an ABCD and two AB = CD's

I have moved the target lines a tad so you can see where the targets are hit from the 50% levels.

Note how tight the stops are, I count a breach of the 50% level a dud so I am out quickly in that case. For these AB = CD the stop remains in place until the target is hit.

To get in at these 50% levels drop to the 5 min chart and look to go long there, you will be surprised at how tight you can get these stops making the risk/reward well worth the effort.

So the 1 hour sets up the ZOO point and the 5 min provides the entry. The stop is just below the 50% and the target is AB = CD.

These are very common moves where the sentiment has swung 100% from C (50%)

Finally we get to this latest signal (Blue) which is a work in progress that I am not in on because I was in bed. They just keep coming along we either get stopped out early or we make the target eventually.

Thanks for pointing them out, that answers a few questions I had. I didn't realise there were so many of them.

I just go home so I have not traded today.

I see the market gave us another ABCD