Trading the Cable swings via averages

I think I pass this question to Alan since he is not only the creator of the unique system but also a ***** educator.

Btw, I am very glad this thread has been well focused to the initial system only.

There we go it exactly hit the 2955+ but I was done and dusted ages ago.

The thing to note here was that the one hour had to make the pull back to find bear support below the EMA.

Its all about breaking the EMA swing levels Kevin. When the EMA breaks below one level price tends to make the next level.

I thought that was well understood by now.

And now we are seeing (but no signal other than the original)

The thing that can stop it is a divergence on this one hour chart.

Is this not a bull RSI div and a regular bull div on the 1hr right on a ZOO point?

Hi Alan et al,

As requested an option to display Target Prices etc, In addition I have modified the Indicator to allow the indicator to analyse as many bars back as you want (please be careful of resources as I cannot guarantee the efficiency of the code)

Cheers...Des

Looking well ahead, is this a valid AB=CD on the 240m chart to consider ?

So, Alan showed the sideways stuff and his hands where blue from sitting on it.
Then we get a breakout, we should trade that direction.
I hope the trade you showed was not the only one you did.
From a breakout we should trade the continuation especially cos we had bear support.
If you want to trade the div's which you show, be sure to see them as a scalp into the M5 EMA. Initially not more than that. And the risk is low because it is the first position.
Looks like you didn't see the bear div forming which is a good Short setup on M5. Price even didn't reach the EMA, if it doesn't, be sure to close your Long position.
Good you had the Stop not big, but could have been tighter.

Zank you again!
Hope you find some time to trade too, in between the coding!

It's a huge one you discovered

i was searching it on a H1 chart, sorry Jazz, sorry Des. Great work Des

Jazz, do you mark all the EMA swings in the same color? And do you place them on different charts, like H1 swings on the M5 chart? Thx

Yes all same color, that does't bite.
I only draw them on their own chart.
I have 5 charts next to eachother and watch m5 m15 h1 closely

Yes it is, I have that one on my 1H chart with a target down at 2700 but there is no way I would be in a trade for that period of time. There will be plenty of trades both up and down before it gets there, if indeed it does so.

What I do is I put a horizontal Blue line at the target level and write in the description box what it is for. I.e. Long term AB = CD. So when I mouse over the line I can read what it is for rather than trying to remember.

If you look back on the 1 hour chart you will see it started with a bear div 2020:01:11 2300 chart time and now we can measure it to be about 500 pips for the whole move.

I also make a note of this in my diary trading notes, hand hard copy written.

Edit … I have an even larger one targeting 2600

The whole concept of locating these AB = CD's is interesting to say the least because they do form levels we can look at in the future.

Remember we are dealing with the sentiment swings from one hand to the other forming equal distances of movement which to me is very logical.

To cut that sentence short I just call them 'Equilibrium Swings'.

Both the AB = CD and the ABCD are based on this very same concept.

However if life was that simple we would all be rich because during the battles we often see price action battling in the wrong direction and this tends to disguise the movements within the noise of battle.

We often see the market moving but cannot see the current reason why, it just appears to be random. However longer time moves are in progress and if we haven't made a past reference of them then they will remain mysterious.

Now perhaps you see why I trade just one pair. There is such a lot of work involved plotting and recording events on the different charts. To trade more than one pair it would become a team effort to get all the work done, a pointless position for an individual to put themselves in.

To get the charts all up to date I find it best to work it out at the weekend when there are no distractions due to price movements. This is where a diary comes in handy so if stuff is lost there is always the hard copy to fall back on to replace these important levels. I would write something like "level xxxx ref page xx' so I can find what I am looking for quite quickly.

On top of all this there are the EMA swings which let us know something is afoot and on a daily basis we can plot our money targets in the correct directions. The longer the time of the signal the more we are going to experience up and down movements within that period but the main impetus is always going to be unidirectional.

I find it all very interesting and trying to work out the concepts contained within the movements and then forming rules for the relationships of these concepts encompasses the whole field of study a trader should be involved with.

This is far removed from wave theory or fib theory or any of these theoretical concepts, it is all about Equilibrium Swings which to me is logic.

Hi guys im going to start drawing these and practicing ABCD and AB=CD moves on my chart which tool are you using to draw them ?

PS such great info in this thread keep it up.

Des have kindly given us a tool for the ABCD's, check his last post 5766 above.

do you mean the target prices ? it does not draw the ABCD like you guys are doing tho.


i was looking for the one in the second screen shot.

I think you mean AB = CD this is different from ABCD

No we don't have a tool for those it is draw manually to incorporate the plus or minus factor as below...