Trading the Cable swings via averages

That is a pretty big question...

I look at all the chart up to the monthly but the higher the time frame the less I need to look at it. But each day I look to remind myself of the possibilities of shall we call them bias moves. In other words if the monthly is both trending and currently moving upwards that is then a bias to consider long options. BUT a lot of things can happen during a month so I would refer to this as being a weak bias and this would equally apply to the weekly chart from a day to day perspective.

Now being aware of the above I drop to the one hour chart which is clearly showing me a few days of detail in respect to what is currently going on and that is what I am interested in for my trading purpose. So looking at the 1 hour chart I left intact from yesterday I begin to make some observations.....

Now I see price has almost moved to where I expected it to go i.e. the EMA and now I would be taking notice of the lower time frames for selling signals.

However I cannot assume price will actually turn south here But if it crosses the 1minute EMA I would be taking the chance with a tentative entry.

As we observe the 1 minute chart we see the EMA's are trying to align to the long side so patience here is required, Price is currently approaching the 1 hour EMA.


It is currently in divergence so a tentative short trade would be applied hoping for price to break the EMA if it doesn't then a HH will probably result so we get the stop to BE just in case.

Notice on the 1 minute the EMA has not made a LL all day only HH's so we have to be careful considering a short.

Now while all this is going on we also see bearish divs on the 5 min and the 15min so we may be on a winner or we may just get stopped out, it matters little because the tentative trade was small and we are not likely to lose much.

We still have an hour or so for the London open so plenty of time yet to make our decision.

So now we have a tentative trade working the stop just above the high and we are hoping for the start of a trade.

This is tough just here because we are hoping the bulls can't make another EMA HH but they could easily do that.

We need to be considering our next entry so we place a pending order below the EMA swing low which will then get picked up if we are right.

Stopped out so also close the pending order and await the next setup.= -4 pips

Sometimes we get lucky with these early starts and sometimes we don't.

Just shorted again on the 1 min div at the 1 hour EMA.

Pending order short in place

A big question with a bigger answer. Just wow!

Can't thank you enough, this is so insightful.

So far so good two pending orders and the tentative in now moving the stops to limit losses.

All my stops just closed for exactly BE. With my 4 pip loss back of course

Phew glad I was stopped out

Now if on the hour the price closes above the EMA then I would be thinking in terms of longs. A closing cross would form an ABCD

Now if I was paying more attention I should have hedged the short three trades with 1 long one . The shorts would have been stopped out and the hedge would be very profitable with the stop now in profit for a few pips hoping for more and this would now be the primary trade.
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Would be hoping for the 3825 as per the 1 hour ABCD

Lock in about ten pips profit for the hedge, requiring another 30.

The thing to understand is how we build a position and then hedge tock everything up. If the hedge take off we are winners if it doesn't we can simply close all for the profit we trapped.

There is nothing wrong with adding further buying positions to the hedge as long as the stops are moved accordingly. This would also shorted our profit target level so we could finish earlier.

Hopefully price will move up more before it decides to make a pullback for a bull support.

I will end there for any questions

Hello Alan, can you show this ABCD you are targeting at 3825

Yes but now the hedge is stopped out for ten pips and the 1 hour is looking short again targeting the 3713

So the 1 min should look something like this so far..