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Trading the Cable swings via averages

  • #6,381
  • May 22, 2020 7:35am May 22, 2020 7:35am
Quoting Andy1501
{quote} Thank you! I took a very modest 10 pips at the London open. I was gonna look for another short entry due to the bull support being taken out but it seems like it's overextended for today. Any thoughts?
I have no idea what this means.

The question should be "Has it reached your expected target?"
  • #6,382
  • May 22, 2020 11:28am May 22, 2020 11:28am
Quoting Nala66
{quote} I have no idea what this means. The question should be "Has it reached your expected target?"

An expected target should be within the reasonable boundaries of a daily range . It is unlikely markets can maintain the same momentum beyond the average daily range, so I tend to implement that consideration into my trading . But then again, my system varies slightly , I was just curious how you would have approached it . Since you were expecting a breakout , I assumed you were not in a position so a target would be out of question . I just think there's a lot of scenarios that are not discussed on the thread , which may lead some to treat this as a rigid system (one that doesn't adapt to different market conditions ) and think they will make money that way . In trading A+B isn't always equal to C because if it was , we'd all be rich beyond belief by now.

Cheers
  • #6,383
  • May 23, 2020 9:47pm May 23, 2020 9:47pm
Quoting Andy1501
{quote} In trading A+B isn't always equal to C because if it was , we'd all be rich beyond belief by now. Cheers
I think you are completely missing the point here.
  • #6,384
  • May 25, 2020 4:27am May 25, 2020 4:27am
I saw nothing on Friday and thus far nothing today.

The usual thing to follow these flat spots is a big break but which way and when remains in balance.

Looking at the huge weekly chart we see the bears are holding to make the EMA LL.
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  • #6,385
  • May 25, 2020 4:30am May 25, 2020 4:30am
bank holiday in UK today
  • #6,386
  • May 26, 2020 4:03am May 26, 2020 4:03am
Anybody got on that train this morning?
  • #6,387
  • May 27, 2020 7:35am May 27, 2020 7:35am
Quoting Del62a
Anybody got on that train this morning?
Yes first trade 1.2370 a Zoo point, 2nd added trade sell 1.23115 taken on the one minuet chart divergence and bear support.
TP 1.22954 at the pivot with bull divergence on the 5 minuet.
But i am back on demo account now, until i can perfect Alans method.
  • #6,388
  • May 29, 2020 6:36pm May 29, 2020 6:36pm
Hello, I am on page 23 and reading, hope I did not lose the opportunity to learn.
MTN
  • #6,389
  • May 29, 2020 8:41pm May 29, 2020 8:41pm
Sorry guys been a tad busy to post this week..

Here for your diary of events I have drawn up the 1 hour chart for you.

Notes are...
a)Over the last three days neither side has FOUND support
b)The price action has mainly been responding to either Hidden or regular divergence.
c) The swing highs of the averages have been the price targets and we see a failure of the swing lows.
d) Currently if the bears FIND support then the average 2406 looks like being targeted.
e) The various levels have provided plenty of ZOO point opportunities

The colour key to this chart is
RED=previous average swing high
GREEN= previous average swing low
MAGENTA= bull or bear support and as such becoming bull or bear resistance.
BLUE=Some form of divergence
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  • #6,390
  • May 30, 2020 12:11am May 30, 2020 12:11am
Hi Alan

Thanks for the last post.

I have been trying to work out bull and bear support according to your teachings.

Am I wrong to consider line 1 and 2 as bull support and 3 as bear support which were taken out ?

Regards

Del
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  • #6,391
  • May 30, 2020 4:11am May 30, 2020 4:11am
Quoting Nala66
Sorry guys been a tad busy to post this week.. Here for your diary of events I have drawn up the 1 hour chart for you. Notes are... a)Over the last three days neither side has FOUND support b)The price action has mainly been responding to either Hidden or regular divergence. c) The swing highs of the averages have been the price targets and we see a failure of the swing lows. d) Currently if the bears FIND support then the average 2406 looks like being targeted. e) The various levels have provided plenty of ZOO point opportunities The colour key...

Alan

re: d) : Do you mean Bull support ?
  • #6,392
  • May 30, 2020 5:20am May 30, 2020 5:20am
Quoting Del62a
Hi Alan Thanks for the last post. I have been trying to work out bull and bear support according to your teachings. Am I wrong to consider line 1 and 2 as bull support and 3 as bear support which were taken out ? Regards Del {image}
No the 1 and 2 you speak of are the swing highs of the EMA which become the targets for price once the price finds support.
  • #6,393
  • May 30, 2020 5:21am May 30, 2020 5:21am
Quoting Del62a
{quote} Alan re: d) : Do you mean Bull support ?
No Red is the average swing high
  • #6,394
  • May 30, 2020 6:38pm May 30, 2020 6:38pm
Quoting Del62a
Hi Alan Thanks for the last post. I have been trying to work out bull and bear support according to your teachings. Am I wrong to consider line 1 and 2 as bull support and 3 as bear support which were taken out ? Regards Del {image}
Hey Del62a, fwiw, I believe, from my Alan thread studies, the bull and bear support is established when price crosses the EMA then forms a pullback/pivot and then continues in the direction of the crossover to make new higher high or new lower low. However in this pullback/pivot formation, no part of the price should recross the EMA or (in mirroring price) should/will any part of the RSI recross the 50% line.

If you check the detail in a zoomed-in view of Alans chart showing those bull and bear support levels, you can see the relationship between these factors that validate the support lines drawn in those locations.

Regarding Alans point d, I think your query was about whether Alan meant to write "if the BULLS (not bears) FIND support...then 2406 may be targeted" and not about the definition of the 2406 red line? I also thought should read bulls - and better check I am not missing a point here? If I have missed anything, I'd be very grateful to be corrected from more experienced members. Cheers...Paul. :-)
  • #6,395
  • May 30, 2020 7:55pm May 30, 2020 7:55pm
Quoting Paulnz57
{quote} Hey Del62a, fwiw, I believe, from my Alan thread studies, the bull and bear support is established when price crosses the EMA then forms a pullback/pivot and then continues in the direction of the crossover to make new higher high or new lower low. However in this pullback/pivot formation, no part of the price should recross the EMA or (in mirroring price) should/will any part of the RSI recross the 50% line. If you check the detail in a zoomed-in view of Alans chart showing those bull and bear support levels, you can see the relationship...
Correct... I stand corrected here I meant the bulls not bears.
  • #6,396
  • May 31, 2020 2:58am May 31, 2020 2:58am
Quoting Paulnz57
{quote} Hey Del62a, fwiw, I believe, from my Alan thread studies, the bull and bear support is established when price crosses the EMA then forms a pullback/pivot and then continues in the direction of the crossover to make new higher high or new lower low. However in this pullback/pivot formation, no part of the price should recross the EMA or (in mirroring price) should/will any part of the RSI recross the 50% line. If you check the detail in a zoomed-in view of Alans chart showing those bull and bear support levels, you can see the relationship...
Thanks for the feedback
  • #6,397
  • Jun 1, 2020 4:30pm Jun 1, 2020 4:30pm
Quoting Nala66
This is what I am looking at... {image}
Hi Alan, why do you draw the green line between these two points please? The are quite far apart in this 5m time frame.

I don't wait understand why do you use this particular point (the left one, above the time label 18 May 19:05) as a reference to decide your entry point on the right.

Do you actually search backward for a point that can form a hidden divergence during trading?
  • #6,398
  • Jun 1, 2020 11:06pm Jun 1, 2020 11:06pm
Quoting luckyvictor
{quote} Hi Alan, why do you draw the green line between these two points please? The are quite far apart in this 5m time frame. I don't wait understand why do you use this particular point (the left one, above the time label 18 May 19:05) as a reference to decide your entry point on the right. Do you actually search backward for a point that can form a hidden divergence during trading?
I don't draw a Green line between TWO points! The green line is a right to left projection from a swing low of the average as is the red projection a swing high of the average. Once price fails is one direction it turns to test the opposite direction.

This is at the 1 hour level so we can where we have plenty of movement to make our profit and can zero in on this movement at the 5 minute level via the pull backs for entries in the right direction.

For hidden divergence of course I have to search backwards else how else could I find it. I am always sliding the blue line measuring and looking for these divs. Once I spot them I drop to the 5 min for trading purposes. Not just for HD's but any kind of div.

As an example look at the 1 hour chart below... A bear div forms at a previous bear support(resistance)(red arrow) This is an invitation to short the market, your hope would be that price can make it back to the EMA, if it doesn't then it is going to make a HH so you would get stopped out for BE +1 or you make your profit target and close the winner. If on the 5 min chart you see the bulls climb and find support then you would not wait to get stopped out on the hour would you?
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  • #6,399
  • Jun 2, 2020 7:48pm Jun 2, 2020 7:48pm
Watching this level carefully there is a huge gap to the next level 2948
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  • #6,400
  • Jun 2, 2020 10:22pm Jun 2, 2020 10:22pm
I just have to say it. The density of knowledge in this thread is amazing.
MTN
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