Trading the Cable swings via averages

It may well go all the way back to 3167 but I am done and can relax.

There is still no bear support on the hour

I would be watching for price on the 5 min to get back across the EMA and find support.

So here is the order flow...

Just after bar 108 we see price dip below the EMA (5min) and we take a chance with our first entry that it is not going to get back, in other words find bear support.

They found this support now we are faced with the dreaded hook which tested the support but could not break it. 2nd entry placed and stops tightened a tad.

Price moves in our favour so stops go to break even.

Now trying to work out where it is going I see the 50% on the hour is almost the same as the EMA swing low on the 5. Not a bad target 40 pips.

Once it had made a small pull back and the past the origin down of that pull back the stops lock in 50% of the profit and we await the result of our effort.

Any questions?

Hi Alan,
Can I ask a quick question about moving to BE, in the initial trade it move nearly 10 pips to the good, reversed back where you added a second trade and then move to hit the target, my question is what stopped you moving to BE after a 8-10 pip move in your direction. I find I am getting stopped out a lot but don't yet have the confidence to give the trade space to breath and nearly always move to BE after 5 or 6 pips to the good. Is there anything which I am missing on the charts which could help me get this sorted

Cheers...Des

I rarely do unless it bolts and I can't get the second trade on. It did that yesterday.

The thing with the initial stop is that it is a risk we are prepared to take if we move it too early then we are no longer accepting that risk and as I have often spoken of that darned hook will get you.

You should expect the hook on every trade even though it doesn't always happen.

Once you do get that second trade on then yes tighten up because this is not about how much we win but how much we could lose.

I did have some stats I could show you Des but I have lost them.

Thanks Alan,

will try to accept the risk/reward on each trade a bit better to help me wait (until after the hook or a significant positive move ) before moving to BE

Cheers...Des

Well Des your first entry is small potatoes compared to the potential rewards especially when we can see a larger target and can get our three entries on.

If we look here at what the averages are doing. We can see on the daily price has leapt ahead so it needs to hold off a tad to let the EMA catch up a bit.

On the hour we should expect a bit of chop now.

The best strategy I have ever seen, but I have very much to learn. Thank you so for your work and patience

Why only two entries in this case?

Helmut

See now on the 5 min the bulls have found support and the bears are fighting like Billy O to break it

And they did so the bulls will have to try again and so will the bears.... We have a war going on here so stay out of it.

We can draw in our ABCD on the 5m and then look at the levels on the 1 min for possible entries

Drawing the targets on the 1 min we see so far it is ranging between the 50% levels

I am not trying to second guess the charts, I am just reading what they are saying to me.

Normally I would expect price to hit the target by the time of the NFP so it has some 45min left to do it.

The current low of the day was both an (exact!) EMA swing low on M5 and M15.
I had those levels as a ZOO, also because it was around Wednesday's highs.
so I decided to take a Long there which did well. Back to H1 and M15 EMA's.



Let's see what happens next. H1 is interesting now, will Bears survive or will Bulls give continuation of the uptrend?

Yes Jazz that is why I said it could bounce right back up.

Well that was exciting, I took 10 pips off the bounce

Catch ya on Monday guys...Good night from him