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Trading the Cable swings via averages

  • #6,941
  • Apr 28, 2021 10:53pm Apr 28, 2021 10:53pm
Quoting Nala66
Talk about YoYo trading yesterday was a blast for profits but one had to be on the ball keeping a close eye on the moves. Divergence kept stopping and reversing the action. I didn't hedge at all but just kept up with the changes until I reached my daily PT. Below is the mess my charts made. What is missing is the 15 min chart where price shot from the Daily S! to the Daily R! where it again ran into div. I have included this below. {image} {image}
Hi Master, what are the parameters of these EMAs?
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Thank you very much
Jewel
  • #6,942
  • Apr 28, 2021 11:01pm Apr 28, 2021 11:01pm
Quoting Thankyoualan
{quote} thank you alan. my today trade: I do the three entries above with a tight sl. Currently I have pocketed 1000 dollars with a capital of 1000 dolllar. H1: I discovered h1 has a function of zoo. I'll take a break and continue the European session open. TF 5 entry: I'll take a break and continue the European session open {image} {image}
congratulation to you
  • #6,943
  • Apr 29, 2021 12:03am Apr 29, 2021 12:03am
Quoting Nala66
{quote} Not sure what you are asking here. We were only talking about a two bar test of a divergence. This is done rather than a trend line which is most often very late.
yes i was also asking about two bar test ,can you simplify this please one one example of both sides not two much lines, Thank you for patience
  • #6,944
  • Apr 29, 2021 1:43am Apr 29, 2021 1:43am
Quoting yahya11
{quote} Thank you so much for sharing I really appreciate your effort
A few days ago, Alan answered this question. You can refer to here

https://www.forexfactory.com/thread/...8#post13514018

Happy trading
  • #6,945
  • Apr 29, 2021 3:49am Apr 29, 2021 3:49am
We have a nice bear HD start of the day on the hour chart with a corresponding bear div on the 5 min.
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  • #6,946
  • Apr 29, 2021 3:55am Apr 29, 2021 3:55am
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  • #6,947
  • Apr 29, 2021 4:26am Apr 29, 2021 4:26am
Quoting Nala66
{image}
Exactly same as mine , your colour choice is awesome , can you please share your template with us
  • #6,948
  • Apr 29, 2021 4:35am Apr 29, 2021 4:35am
Quoting yahya11
{quote} Exactly same as mine , your colour choice is awesome , can you please share your template with us
Not much of a colour choice:-

The background is white.
Both up and down bars are Black
  • #6,949
  • Apr 29, 2021 11:10am Apr 29, 2021 11:10am
Quoting Nala66
{quote} Not much of a colour choice:- The background is white. Both up and down bars are Black
yes i actually set this , thank you for answer , you are my mentor
  • #6,950
  • May 3, 2021 9:35pm May 3, 2021 9:35pm
Good morning Alan, look at picture below there is a regular bullish divergence at bar 108 you can see green lines but after few bars there was another regular divergence this bearish I was confused that which one will work. After 40 pipes above there were abearish regular divergence I put a sell trade here and we were trading below the EMA on 1hour but goes wrong and price went up long long about 40 pips more
My question is that how can we find this divergence is good or bad for trade
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And in second picture there is a bulish divergence but price going to south they are still divergence as you can see in blue line but no effect on price they are going to down. So how can we identified the good divergence pleas help i lose so much tomorrow while there was a good chance to collect plenty of pips
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  • #6,951
  • May 4, 2021 12:51am May 4, 2021 12:51am
Quoting yahya11
Good morning Alan, look at picture below there is a regular bullish divergence at bar 108 you can see green lines but after few bars there was another regular divergence this bearish I was confused that which one will work. After 40 pipes above there were abearish regular divergence I put a sell trade here and we were trading below the EMA on 1hour but goes wrong and price went up long long about 40 pips more My question is that how can we find this divergence is good or bad for trade{image}And in second picture there is a bulish divergence but...
Alan once said that if you have a divergence in H1, you go down to M5 or M1 to find an entry point, in these 2 timeframe you will have a small SL and SL will save you when you are wrong.
In short, there is no way of knowing if such divergence is helpful or not. In my opinion you need to experiment with small slots and small SL, if you are right increase the slots

Happy trading
  • #6,952
  • May 4, 2021 4:04am May 4, 2021 4:04am
Quoting yahya11
Good morning Alan,
Hi Yahya11

If it were just a matter of drawing lines to determine divergence then all of us monkeys would be rich beyond belief but that is simply not the case is it.

If we are looking for a divergence on the 5 minute chart then we need to also determine a reason for it being there. This is why we look to the 1 hour for some sort of ZOO point where we expect something may happen to cause us to make a decision.

Look carefully at the 5 minute chart below where I have been short and long to complete the day.

The blue EMA is the 1 hour 26 period. The magenta is the 15 min 26period ema The red and blue is this charts 26 period.

There is an ABCD triangle and the price hit the D target which was also the 1 hour ema. This is a ZOO point and we ask is it in divergence. Yes it was not once but twice if we count the RSI div. Then a two bar test gets us into the trade with the stop above the div. We don't know the target price yet so on this same chart we look for the potential problems we can either hedge or close and indeed trade the opposite way to complete our day.

Price ran into divs at the bottom and both two bar test would have been OK since price did not get to the stop below the div.

Again price ran to the 1 hour ema and was again a div another ZOO point for consideration to short.

Don't just take a page from a story and think you have read the book. We need to read carefully what the chart are telling us since these are a reflection of the orders being placed and how strong or weak they are. Every trade we take we are exposed to risk so we have to understand exactly what is going on or what we feel is the most likely outcome and be prepared to be wrong about the analysis.
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  • #6,953
  • May 4, 2021 4:15am May 4, 2021 4:15am
If we look at the 15 min chart we see again an ABCD and when price hits D it is in divergence.
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  • #6,954
  • May 4, 2021 4:19am May 4, 2021 4:19am
To get back to the reason to take the div. You can clearly see on the 15 min above that price was in div prior to hitting D so this is a worry since we have no reason to take it. Once it hit D then we have both a div and a reason and we would expect the price to test the EMA.
  • #6,955
  • May 4, 2021 5:52am May 4, 2021 5:52am
I made a mistake in the text on the 5 min chart above. The blue ema is the 4 hour not the 1 hour which is black.
  • #6,956
  • May 4, 2021 6:07am May 4, 2021 6:07am
Quoting Nala66
{quote} Hi Yahya11 If it were just a matter of drawing lines to determine divergence then all of us monkeys would be rich beyond belief but that is simply not the case is it. If we are looking for a divergence on the 5 minute chart then we need to also determine a reason for it being there. This is why we look to the 1 hour for some sort of ZOO point where we expect something may happen to cause us to make a decision. Look carefully at the 5 minute chart below where I have been short and long to complete the day. The blue EMA is the 1 hour 26 period....
Thank you so much once again for such a detailed and very helpful explanation, i understand all the things but at the time of trade i often make mistakes. But you are a good instructor i will be master one day as you inshaALLAH.
can you please tell me how to add All these EMAs on one chart
thank you
  • #6,957
  • May 4, 2021 6:14am May 4, 2021 6:14am
Alan can you pleas explain two bar test pleas pleas once again for me with example just one
  • #6,958
  • May 4, 2021 6:16am May 4, 2021 6:16am
Quoting yahya11
{quote} can you please tell me how to add All these EMAs on one chart thank you
It is just simple maths.

Take the 5 min chart for example.

To put a 15 min 26 period ema on it we simply...

15min / divided by 5 = 3
so 3 X 26 = a 78 period ema to overlay it on the 5 min chart.

Likewise to put a 1 hour EMA we simply...

60min / divided by 5 = 12
so 12 X 26 = a 312 period ema to overlay it on the 5 min.

Choose the colours you are familiar with.
  • #6,959
  • May 4, 2021 6:23am May 4, 2021 6:23am
Quoting yahya11
Alan can you pleas explain two bar test pleas pleas once again for me with example just one
When you have a divergence you want to test it to see if it working for you.

So the bar in divergence is tested with the bar before it (the two bars0 The entry is the cross of the test line and the stop is above the divergence bar.. Your hope now is that the price should return to the EMA.

So you can determine if the distance to the EMA is worth the risk to your stop.
  • #6,960
  • May 4, 2021 10:43am May 4, 2021 10:43am
Quoting Nala66
{quote} It is just simple maths. Take the 5 min chart for example. To put a 15 min 26 period ema on it we simply... 15min / divided by 5 = 3 so 3 X 26 = a 78 period ema to overlay it on the 5 min chart. Likewise to put a 1 hour EMA we simply... 60min / divided by 5 = 12 so 12 X 26 = a 312 period ema to overlay it on the 5 min. Choose the colours you are familiar with.
Its really helpfull Thank you
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