Disliked{quote} when return of the move is more than 50% we minus those extra pips and when D formed we add them in D ?Ignored
Trading the Cable swings via averages
- #7,202
- Jul 30, 2021 2:04pm Jul 30, 2021 2:04pm
- | Joined Sep 2009 | Status: Trader | 1,425 Posts
Dear Alan,
I see one of your posts here.
https://www.forexfactory.com/thread/...9#post12129009
Can a candle creating a bearish support have a tail touching ema, is such a bear sp still acceptable to you?
Thank you very much
I see one of your posts here.
https://www.forexfactory.com/thread/...9#post12129009
Can a candle creating a bearish support have a tail touching ema, is such a bear sp still acceptable to you?
Thank you very much
- #7,210
- Aug 3, 2021 12:02pm Aug 3, 2021 12:02pm
- | Joined Sep 2009 | Status: Trader | 1,425 Posts
- #7,212
- Aug 4, 2021 1:14pm Aug 4, 2021 1:14pm
- | Joined Sep 2009 | Status: Trader | 1,425 Posts
- #7,217
- Aug 8, 2021 9:46pm Aug 8, 2021 9:46pm
- Joined Mar 2016 | Status: Trader | 6,378 Posts
{quote} Mentor could you pleas explain little more about how you find RSI indicating strength and weakness with examples
To many people the difference between strength and weakness is a mute point in that they appear to be opposites but I don't see it this way at all.
This is a little complicated to explain so just bear with it a tad while I attempt to unravel it.
I know this sounds a tad abstract but lets assume there is no such thing as weakness so there is only strength remaining.
Our task is to find this strength and trade it accordingly, to trade against it is just futile and a waste of time let alone money.
So if there is only strength how can we trade it effectively. If price is rising then it is bull strength, if it is falling then it is bear strength so where is there such a thing as weakness. We nay say weakness is at the extremities of the move and this is easily seen in hindsight but in real time it is a different story.
Observe this 5 min chart...
We have three boxes representing three different situations.
1 Red box) The EMA's are bunching up and although we are seeing divs they are producing little. This is a 5 min chart so look at the 5 min EMA... Flat as a tack. Not a good thing to get excited about at all. Look at the RSI constantly switching sides and the EMA also doing the same.
2 Green box) Something is afoot Watson The bears have found support and the EMA's are beginning to spread we have dropped below the 5, 15 and 1hour averages so it would appear the bears have the strength. However no sooner than they break below the 4 hour and they run into an RSI div and the bulls have the strength to get back up again. But once again they run into a bear RSI div and this time it is different the EMA has not made the HH, is has failed so although the bulls had price strength they have EMA weakness. Remember when weakness occurs the opposite side will be tested.
So there you have my interpretation of strength and weakness. Strength relates to the price and weakness relates to the EMA.
3 Blue box) The EMA has failed to make the HH so now it is testing the LL's and the market pounces on the opportunity to make money. This despite a few efforts of showing strength by the bulls (possible hedges for us) The EMA will have its way.
Hope that makes sense, I couldn't understand a word of it and I wrote it.
