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Trading the Cable swings via averages

  • #5,601
  • Feb 8, 2020 4:03am Feb 8, 2020 4:03am
Quoting MrMagnet
{quote} When we look back in hindsight we all see the zoo and the divergence that was the exact point where the market turned. {image} {image}
Hi MM

Sorry been away a couple of days.

Looking at your charts here and see you are doing exactly the opposite of what you should be doing.

The trend is down so why look for bull signals it is the bear signals you should be interested in and yet you have none of them marked.

We only look for the bull signal when we a possible ZOO point on the hour chart. We can see on the hour chart that the bears are still continuing to pull down the EMA so there are no longs to even consider.

You will always get lots of bull divs on the 5 min when the 1 hour is trending down. These are not what you look for, look for the continuation divs with your test lines on top not below as you have them.
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  • #5,602
  • Feb 8, 2020 9:24am Feb 8, 2020 9:24am
Quoting Nala66
{quote} Hi MM Sorry been away a couple of days. Looking at your charts here and see you are doing exactly the opposite of what you should be doing. The trend is down so why look for bull signals it is the bear signals you should be interested in and yet you have none of them marked. We only look for the bull signal when we a possible ZOO point on the hour chart. We can see on the hour chart that the bears are still continuing to pull down the EMA so there are no longs to even consider. You will always get lots of bull divs on the 5 min when...
Hi Alan, wouldn't the first bull div considered to be at a ZOO point - 1.2947?

Now on the second bull div, it seems that there are enough pips between price and the 26 ema. Why in some example do we take counter trend divs such as this and in this case we should not?

Thanks again.
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  • #5,603
  • Feb 8, 2020 12:38pm Feb 8, 2020 12:38pm
Quoting asoriga
{quote} Hi Alan, wouldn't the first bull div considered to be at a ZOO point - 1.2947? Now on the second bull div, it seems that there are enough pips between price and the 26 ema. Why in some example do we take counter trend divs such as this and in this case we should not? Thanks again. {image}
so agree let there be a bullish H1 divergence (the first one), so from that point on we are searching on the M5 to find a bullish setup ( we are not purely entering on the H1 divergences only but from that point on we are looking on the M5 to get us in the direction the H1 is indicating and in this case a scalp long since we are below the EMA) but did the M5 provided an entry? Don't think so.

Now on the second bullish H1 divergence the M5 provided an entry so we could have entered that one targetting the H1 EMA (but only a scalp).
  • #5,604
  • Feb 8, 2020 4:03pm Feb 8, 2020 4:03pm
Quoting Nala66
{quote} Hi MM Sorry been away a couple of days. Looking at your charts here and see you are doing exactly the opposite of what you should be doing. The trend is down so why look for bull signals it is the bear signals you should be interested in and yet you have none of them marked. We only look for the bull signal when we a possible ZOO point on the hour chart. We can see on the hour chart that the bears are still continuing to pull down the EMA so there are no longs to even consider. You will always get lots of bull divs on the 5 min when the...
I know it's the wrong way and I did give an example in post 5585 of which divergences to take. Just trying to help in your absence Maybe you could go back over Asoriga questions during the week and further explain to him the probabilities of why divergences fail against the main flow of the market.

Would those entries not be valid if I was short in the market and wanted to hedge considering it being the end of trade on Friday?
  • #5,605
  • Feb 8, 2020 7:36pm Feb 8, 2020 7:36pm
Quoting huskyboy
{quote} so agree let there be a bullish H1 divergence (the first one), so from that point on we are searching on the M5 to find a bullish setup ( we are not purely entering on the H1 divergences only but from that point on we are looking on the M5 to get us in the direction the H1 is indicating and in this case a scalp long since we are below the EMA) but did the M5 provided an entry? Don't think so. Now on the second bullish H1 divergence the M5 provided an entry so we could have entered that one targetting the H1 EMA (but only a scalp).
Also to add to this, suppose we did take the trade.

We would have lost almost immediately by being stopped out. This would have been a small stop out and only on a first entry so the loss would be tiny also.

That is precisely why we have stops in the first place. This allows us to get out with little damage so we can get back in in the correct direction and not only recoup our money but make a profit also. We would be looking at the EMA now making this level because the price has passed it. If the EMA is to make this level then the price will be making for the next level.
  • #5,606
  • Feb 8, 2020 10:34pm Feb 8, 2020 10:34pm
Quoting Nala66
I will try to answer questions power cuts permitting.
I am quite late finding this thread. I have a problem with the current price line. I cannot get it without the grid. I delete the grid and price line goes with it. The other thing, although I have done it before, I cannot get the 5 RSI to go on the 14. I don't get the option to apply it to "previous indicator's data'. What am I doing wrong?
All you touch and all you see, is all your life will ever be.
  • #5,607
  • Feb 9, 2020 4:00am Feb 9, 2020 4:00am
Quoting Loftboy
{quote} I am quite late finding this thread. I have a problem with the current price line. I cannot get it without the grid. I delete the grid and price line goes with it. The other thing, although I have done it before, I cannot get the 5 RSI to go on the 14. I don't get the option to apply it to "previous indicator's data'. What am I doing wrong?
that's an old quote from Alan?

search in the eclipse on top and you will find there "ready to use" templates.
  • #5,608
  • Feb 10, 2020 3:50am Feb 10, 2020 3:50am
Did everyone get paid?????
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  • #5,609
  • Feb 10, 2020 3:57am Feb 10, 2020 3:57am
5 min chart looks like this now...
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  • #5,610
  • Feb 10, 2020 3:58am Feb 10, 2020 3:58am
Can it make another 30 pips??????????
  • #5,611
  • Edited 4:36am Feb 10, 2020 4:05am | Edited 4:36am
Quoting Nala66
Did everyone get paid????? {image}
I only got this but was in and out my desk, arrows should have been my entries, H1 HD for the bull side
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  • #5,612
  • Feb 10, 2020 5:37am Feb 10, 2020 5:37am
Quoting huskyboy
{quote} I only got this but was in and out my desk, arrows should have been my entries, H1 HD for the bull side {image}
Gee how did you survive not being stopped out!

Profit target hit now 40 pips.
  • #5,613
  • Feb 10, 2020 7:46am Feb 10, 2020 7:46am
That is as good as I can get it...
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  • #5,614
  • Feb 10, 2020 1:18pm Feb 10, 2020 1:18pm
Quoting Nala66
That is as good as I can get it... {image}
That is great. Also H1 EMA level there.in divergence. In a downtrend.
Trading S/R with PA only. No indicators anymore!
  • #5,615
  • Feb 10, 2020 7:12pm Feb 10, 2020 7:12pm
Quoting Nala66
{quote} Looking at your charts here and see you are doing exactly the opposite of what you should be doing. The trend is down so why look for bull signals it is the bear signals you should be interested in and yet you have none of them marked. We only look for the bull signal when we a possible ZOO point on the hour chart. {image}
Why do we take the most recent bull div but not the previous two, what is the difference? What is the ZOO point in the 1HR chart for the most recent div? Also, I'm still not clear if the first of the three bull div's should be considered as being at a ZOO point (1.2947). Thanks.
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  • #5,616
  • Feb 10, 2020 11:51pm Feb 10, 2020 11:51pm
Quoting asoriga
{quote} Why do we take the most recent bull div but not the previous two, what is the difference? What is the ZOO point in the 1HR chart for the most recent div? Also, I'm still not clear if the first of the three bull div's should be considered as being at a ZOO point (1.2947). Thanks. {image}
This has already been answered, howver...

Who said we would not have taken the previous two. Most likely we would have.

But recall the reaction of divs, they send the price back up to the EMA to look for support on the opposite side. If they fail then the price will make a LL than the div. Therefor to prevent a significant loss we place a stop below the div until we can get it to B/even.

You have three shown.
The 1st one failed quickly so you get stopped out.
The second had a hook retest before moving to the EMA but couldn't find support on the opposite side...A lower low is coming
The third managed the cross, found support and ran to the average swing level.

Being stopped out for a small sum is nothing compared to the rward. Once the direction is given by the hour chart the multiple entries can be made in the direction via the lower time frames.

The process is simple. NEVER add to a losing trade, always COMPOUND a winning trade. This alone puts the mathematics highly in your favour for being successful.
  • #5,617
  • Feb 11, 2020 12:18am Feb 11, 2020 12:18am
If we are going to specialise in divergences then we have to consider beforehand what our options are.

Suppose the diagram below is a 1 hour chart and we manage to go short via the lower time frames.

As price approached the 1 hour EMA we may have seen trouble on the lower time frame so we could simple hedge and wait and see.

If price does indeed fail the 1 hour EMA then it is going to make a HH than the div level.

Alternatively if we don't hedge and just get stopped out we can recoup any losses with the HH
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It is not for me to tell you how to manage your trades, you have to do a little thinking also.
  • #5,618
  • Feb 11, 2020 12:33am Feb 11, 2020 12:33am
If the EMA on this 1 hour chart is going to swing up to pass the 2942 swing then price will attempt to make the 3033.

We have a possible AB = CD to start it on its way.
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  • #5,619
  • Feb 11, 2020 2:41am Feb 11, 2020 2:41am
This is hopeless, 3 wins and two losses thus far to be $1 in front.
  • #5,620
  • Feb 11, 2020 3:41am Feb 11, 2020 3:41am
Ha that is funny... I put a pending buy stop on top of the range with a 20 pip TP. Come back to the PC and I have been paid.
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