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Trading the Cable swings via averages

  • #7,161
  • Jul 21, 2021 2:37am Jul 21, 2021 2:37am
Quoting covid
My view this morning. is it correct ? Thanks {image}
The div you have at the top was an RSI div, not a price div..

The other stuff was fine
  • #7,162
  • Jul 21, 2021 3:08am Jul 21, 2021 3:08am
Quoting Nala66
{quote} The div you have at the top was an RSI div, not a price div.. The other stuff was fine
of course it is RSI div, but why is not price DIV, I found 2 tops on price chart
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  • #7,163
  • Jul 21, 2021 4:01am Jul 21, 2021 4:01am
Quoting covid
{quote} of course it is RSI div, but why is not price DIV, I found 2 tops on price chart {image}
The red line on your RSI is sloping the same way as the blue line you have on the price.
  • #7,164
  • Jul 21, 2021 4:46am Jul 21, 2021 4:46am
Quoting Nala66
{quote} The red line on your RSI is sloping the same way as the blue line you have on the price.
Got it,
And this afternoon we found HD in H1 and M5
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  • #7,165
  • Jul 21, 2021 5:24am Jul 21, 2021 5:24am
Quoting covid
{quote} of course it is RSI div, but why is not price DIV, I found 2 tops on price chart {image}
your bear support is incorrect, because the high price has hit the ema

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  • #7,166
  • Jul 21, 2021 5:31am Jul 21, 2021 5:31am
Quoting covid
{quote} Got it, And this afternoon we found HD in H1 and M5 {image}
No on your 5 min chart it was a regular bull divergence but on the hour it was a HD (shown below)
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  • #7,167
  • Jul 21, 2021 6:05am Jul 21, 2021 6:05am
Quoting Nala66
{quote} No on your 5 min chart it was a regular bull divergence but on the hour it was a HD (shown below) {image}
Could you please correct my view
Thanks Alan
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  • #7,168
  • Jul 21, 2021 6:36am Jul 21, 2021 6:36am
Quoting covid
{quote} Could you please correct my view Thanks Alan {image}
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  • #7,169
  • Jul 21, 2021 8:26am Jul 21, 2021 8:26am
Quoting Nala66
{quote} {image}
In another post, I asked you about the divergence of the fast RSI and the slow RSI, and I also found that price often reverses after each of these divergences.
Is this considered true?
  • #7,170
  • Jul 21, 2021 10:28am Jul 21, 2021 10:28am
Quoting covid
{quote} In another post, I asked you about the divergence of the fast RSI and the slow RSI, and I also found that price often reverses after each of these divergences. Is this considered true?
Yes, that is why I use it.
  • #7,171
  • Jul 21, 2021 6:01pm Jul 21, 2021 6:01pm
Quoting Nala66
{quote} Well what can I say I have shown numerous examples now of the various types of divergence. The trick is to find them where we expect them to be as the charts below clearly show. On the left 5min I have the EMA showing me where the swings are. The X symbol leads the EMA telling me to look for the divergence that may turn it around. The horizontal lines on the swings are the levels to be broken. When the average fails one side it tests the opposite side (which can also fail) The 5 min chart on the right shows me two types of divergence at...
I realized that in your strategy it is necessary to hegde to preserve profits as soon as the entry is in the right direction for a certain period of time.
I've had the same situation many times: I had a great entry but then lost it 30 minutes or more later. actually i tried to figure out why myself, and i read at post #1643 and #1644 and see my mistake.
  • #7,172
  • Jul 21, 2021 9:59pm Jul 21, 2021 9:59pm
Quoting covid
{quote} I realized that in your strategy it is necessary to hegde to preserve profits as soon as the entry is in the right direction for a certain period of time. I've had the same situation many times: I had a great entry but then lost it 30 minutes or more later. actually i tried to figure out why myself, and i read at post #1643 and #1644 and see my mistake.
Taking a long for example... We are loading our trade with several entries and moving our stop for protection. We come to a level we expect a turn of sorts based on an opposing signal. Our first option is to hedge the entirety of the long entries so we have consolidated them all in one short entry. As the hedge becomes profitable we can protect it with a stop and close all the long entries for whatever profit they yield.

We do not hedge simply to preserve profits, we may just as easily close the trade and collect those profits.

The hedge is a very safe entry counter to our primary direction and lots of pips can be picked up by using it correctly. We can then add to the hedge position and indeed we can also hedge the hedge so our investment in the markets grows substantially and safely.
  • #7,173
  • Jul 22, 2021 8:36pm Jul 22, 2021 8:36pm
Quoting Nala66
{quote} Taking a long for example... We are loading our trade with several entries and moving our stop for protection. We come to a level we expect a turn of sorts based on an opposing signal. Our first option is to hedge the entirety of the long entries so we have consolidated them all in one short entry. As the hedge becomes profitable we can protect it with a stop and close all the long entries for whatever profit they yield. We do not hedge simply to preserve profits, we may just as easily close the trade and collect those profits. The hedge...
Dear allan,
What is an opposing signal? Classic divergence? ema makes fail? Test failed bulls/bears support?
Thank you Mentor
  • #7,174
  • Jul 22, 2021 8:56pm Jul 22, 2021 8:56pm
Quoting jewelnguyen
{quote} Dear allan, What is an opposing signal? Classic divergence? ema makes fail? Test failed bulls/bears support? Thank you Mentor
My idea is: we will find failed or succeeded EMA to try HH or LL. Back to post#480 and find the answer, that's my thinking. I don't care that DIV can be happened or not. I care the EMA will make HH or LL . DIV is a supporter
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  • #7,175
  • Jul 22, 2021 9:05pm Jul 22, 2021 9:05pm
Now, GU, my view
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  • #7,176
  • Jul 22, 2021 11:17pm Jul 22, 2021 11:17pm
Quoting jewelnguyen
{quote} Dear allan, What is an opposing signal? Classic divergence? ema makes fail? Test failed bulls/bears support? Thank you Mentor
If we are long on a div on say the 5 min chart and then a bear div occurs it becomes an opposing signal. Both signals are in opposition and this would worry us.

We need to make the decision to either a) Close the trade, B) Hedge the trade and C) the old standby of doing nothing.

If we take the 5 min chart below as an example...

P) is our primary long trade, a bull divergence.

Now the price starts off correctly in our direction but runs into a div at A. What are we going to do? Look carefully at div A and see it is form on either side of the EMA so it is a special div we call an ABCD. Knowing this price is either going to make a LL to the D target or a HH to the D target so which of the 3 options do we take, always bearing in mind we cannot see the future.

The answer is C, we are in a wait and see situation but take the precaution of moving our stop to just below the EMA, just in case.

Then the price moves to B and again we need to do something so what do we do? We can see we are at about 50% the way to the target D and this troubles us since it often fails here. So we opt for option B and hedge the primary trade expecting price to come south and cross the EMA. It doesn't make the EMA so our stop is applied to the hedge and is stopped out as price then moves onto the D target.

Following the D target we get another bear div C and if we have not yet closed at D we should use option A and close at this div because it indicates a time and place to be shorting the market. We could also hedge but since the target D has been reached I would assume we are at the current top so no point hedging.

Now look at the div C in relation to the EMA. Price consolidates allowing the div to catch up and makes the HH, It failed to make the LL for our primary trade entry and as expected made the HH. Fails one side and so it tests the opposite.

Later on in the game if again the EMA failed to the short side and went on to make the long side HH. Again these were signaled by divs.

See how we read and track the details and take the appropriate actions based on what we know to be true.
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  • #7,177
  • Jul 23, 2021 6:05am Jul 23, 2021 6:05am
Quoting Nala66
{quote} If we are long on a div on say the 5 min chart and then a bear div occurs it becomes an opposing signal. Both signals are in opposition and this would worry us. We need to make the decision to either a) Close the trade, B) Hedge the trade and C) the old standby of doing nothing. If we take the 5 min chart below as an example... P) is our primary long trade, a bull divergence. Now the price starts off correctly in our direction but runs into a div at A. What are we going to do? Look carefully at div A and see it is form on either side of...
Thank you very much Mentor
  • #7,178
  • Jul 27, 2021 3:00am Jul 27, 2021 3:00am
Quoting Nala66
{quote} If we are long on a div on say the 5 min chart and then a bear div occurs it becomes an opposing signal. Both signals are in opposition and this would worry us. We need to make the decision to either a) Close the trade, B) Hedge the trade and C) the old standby of doing nothing. If we take the 5 min chart below as an example... P) is our primary long trade, a bull divergence. Now the price starts off correctly in our direction but runs into a div at A. What are we going to do? Look carefully at div A and see it is form on either side of...
Hi Alan,
Could you please explain more about ABCD. How to find it, how to draw it, where is A, B, C and D. it is quite difficult with me . Thanks
  • #7,179
  • Jul 27, 2021 9:48am Jul 27, 2021 9:48am
Quoting covid
{quote} Hi Alan, Could you please explain more about ABCD. How to find it, how to draw it, where is A, B, C and D. it is quite difficult with me . Thanks
There is so much information in those pdf`s.,Years of answering same questions.Read them, till you can dream it.Alot more, then you can get in a couple of paragraphs .If you want to succeed ,try to be more dedicated to the task.So my advice is read those pdf`s ,study the information there ,digest it ,and then you will prosper.I hope you will listen.
  • #7,180
  • Jul 27, 2021 9:54am Jul 27, 2021 9:54am
Quoting R8b8l
{quote} There is so much information in those pdf`s.,Years of answering same questions.Read them, till you can dream it.Alot more, then you can get in a couple of paragraphs .If you want to succeed ,try to be more dedicated to the task.So my advice is read those pdf`s ,study the information there ,digest it ,and then you will prosper.I hope you will listen.
agree on that, and besides there's such a fine indi that will draw the ABCD's for you
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