Trading the Cable swings via averages

same situation as yesterday, same ABCD H1 in play, and 3003 seems to be holding for the moment, bull div on lower tfs

going for 29892??

Hi Jazz, were you able to catch that bullish move? Would like to see your trades. I couldn't find proper Zoo's today.

Here was the ZOO...

Hi Kevin,
Sorry, I was off and could not respond to what I read on my phone.

I did not want to do anything around 108 bar because of that flat H1 EMA I had no guts, altogether with the upcoming interest rate News, I wondered if there would be any move during the morning session. Meaning I had my ZOO's further away.

Ow, also that Daily support line from MrMagnet was interesting.


Here are my entries on M5.

That first Long was soso but it is easy to keep the loss tight.

I also had initially a bit of trouble to find good ZOO's, firstly I marked up too many levels but erased several ones.
Look at the ABCD being filled on the H1 chart!

Sorry I don't know why I marked the 5 min with a HD of course it was just a regular bull div.

That didn't even appear to me and i make that same error once in a while.

Filled in divergence at the bear resistance levels... So we look to go long to the much bigger target of 3080 being the next average swing level.

So the ABCD is filled on both sides. However the long option was by far the better option.

Now if the average is to hit the 3080 level then price should hit the 3121 level.

A question we should be asking is if we are just looking for small trades or do we want to catch the much larger ones.

it is raining, I can finally have a wash after months of that dry stuff. Now if only I could remember where I put the soap?

Just started raining here. Took the car out of the shed and parked it in the driveway. One less job I have to do this weekend

GD all!! Even if we are above the 1h avg, should we look for bearish setups around the next avg swing? (box in the chart)

End of week and end of month I wouldn't be expecting too much. A 1 hour div may give you a lower time frame short

It now depends on how high the average is going to swing because there are some good targets up there.

Thanks Alan, it's been a while but it's great to be back on this beautiful thread. I see it has grown a lot at there are some new things

Hi Aleix, nice to have you back.

Jazz and Alan, Thank you very much. I see what I was missing now. Got to focus more on finding these Zoo's.

Price in the ZOO+ H1 bearish div + M5 bearish RSI div

Just reviewing a few trades from the week and wondering how others would have played them, appreciate any feedback. Bullish div in H1, M30, M15, and M5 at that moment. Entered first buy at 1 (missed the previous div), added another buy through a bull div in M1 a few candles later.

I decided to hedge at 2. A few questions, (1) Given such a small distance between price and 26MA, should I have done so? (2) Another thing I struggle with is once I'm in that short hedge trade, at what point do I exit? After entry, next 5 minute candle moves against me but closes as a continued bear div, stop loss not hit so still in. Next candle also closes as bear div at 3 but is getting close to our 10 pip stop loss and eventually does get to -15 pips on next candle. (2a) Do I exit my hedge at any point there? (2b) Do I reset the stop loss for initial hedge and move it because of new div at 4? (2c) Do I exit initial hedge and enter new hedge at most recent div at 4?

I ended up just making another entry at 4 which I realize is not part of the rules, and realize I shouldn't add to losers, but I didn't have a plan and I struggled in the moment thinking through what to do. Leads to second set of question. I like the idea of not thinking while trading and just reacting to what the charts tell us as Alan speaks about but I'm finding that particularly hard to do. In this situation, you can see I where I moved my stop losses for the buys. (3) Given the bull divs at 4 and 5, should I have used these as signals to move the stop losses back as if div 4 or 5 were new buy trades? (4) Should I at the same time unhedge the initial buy trades at 4 or 5? (5) Or should I have just moved the hedge to BE? At the time I was also THINKING that given price is below the 1HR ema that I should be favoring shorts and because of that I wasn't able to really "accept" and just react to what the M5 charts were doing on the long side. Because of that I was hesitant in getting out of my sell orders and held on probably too long. I hope this was not too confusing, and again, appreciate any feedback.

I have made a mess of your charts for you to consider.

When below on the 1 hour we should be looking for shorts yes, but, all things come to an end and the div you have is going to send price back to the EMA so if the distance is worth it why not take it?

You haven't put the average swing levels on any charts here, I know not why since this is a major point of the whole system.

It is a combination of all the elements I have described that enable me to read the chart events. We cannot just use 50% of the alphabet to decipher a book.

I am glad this came up because it helps me to explain why hedging is important to build the trade to maximise the profits in a very safe manner.

On the 5 min chart we see at the top a div where the 3rd hedge was taken. This was the swing average of the 1 hour so we would be expecting a short there being a 1 hour ZOO point.

So if the price is going to swing down again there is little point in holding onto the 3 long positions we have tied up in the trend up.

Our third hedge has moved into profit so we can close the longs and place a stop to protect the hedge

Now the hedge has become the primary trade and we have all our money tied up in it SAFELY. We still have some money left because we made a profit from the previous two hedges and have made a tidy profit from the 3 long entries.

The 3rd hedge moves down and makes up any shortfall for our profit target. We can keep this up indefinitely if we wish, constantly hedging from one direction to the other and can even increase the value of the hedges with the profits collected along the way.

We see on the hour the direction did change and we are at the top of the tree with a bucketful of money short. We can add to this both from profits realised and the equity built into the current winnings..

These short trades would become spread out again and would then be grouped together again with a long hedge at the bottom and as long as you can keep your eyes open you can continue with this.

ABCD H1; price can make bear support here