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Trading the Cable swings via averages

  • #7,721
  • Apr 7, 2022 6:51am Apr 7, 2022 6:51am
Hi mentor , can i open a trade here on the divergence , and how far should i place the stop and how much target
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  • #7,722
  • Apr 7, 2022 7:02am Apr 7, 2022 7:02am
Quoting Fantaburk
{quote} Alan, may I ask when you close your long trade in favor of the short in this scenario?
M5 divergence occured at ZOO (Y-high and H4 ema, just my opinion and i guess you knew/saw that)
  • #7,723
  • Apr 7, 2022 7:05am Apr 7, 2022 7:05am
Quoting yahya11
Hi mentor , can i open a trade here on the divergence , and how far should i place the stop and how much target {image}
it seems you are connecting candle closes with candle highs?
  • #7,724
  • Apr 7, 2022 7:42am Apr 7, 2022 7:42am
Quoting huskyboy
{quote} M5 divergence occured at ZOO (Y-high and H4 ema, just my opinion and i guess you knew/saw that)
Yes buddy I see the short entry. But I was curious when in this trade he decides to close the longs to grab it's profit.

(also the 50% retracement on 1h as a zoo )
  • #7,725
  • Apr 7, 2022 8:01am Apr 7, 2022 8:01am
Quoting huskyboy
{quote} it seems you are connecting candle closes with candle highs?
yes , is this wrong , how should i connect?
  • #7,726
  • Apr 7, 2022 10:21am Apr 7, 2022 10:21am
Quoting Fantaburk
{quote} Alan, may I ask when you close your long trade in favor of the short in this scenario?
From the trade open at the div I let it run to the opposing div. Once the second div appears I open the opposing sell (hedge) once I get the stop to break even I close the long and look to add more to my now short.

This was many more pips than I needed but hey! I get greedy sometimes.
  • #7,727
  • Apr 7, 2022 10:24am Apr 7, 2022 10:24am
Quoting huskyboy
{quote} it seems you are connecting candle closes with candle highs?
Sure you can but you need to ask is it worth it being so close to the EMA. Why risk ten pips to make 5?
  • #7,728
  • Apr 7, 2022 10:47am Apr 7, 2022 10:47am
Quoting Nala66
{quote} From the trade open at the div I let it run to the opposing div. Once the second div appears I open the opposing sell (hedge) once I get the stop to break even I close the long and look to add more to my now short. This was many more pips than I needed but hey! I get greedy sometimes.
And about when did you get to put stops at break even?
I think I'd moved them too soon alas get stopped out from the hd. Which I guess would have been a signal to get back in
  • #7,729
  • Apr 7, 2022 7:17pm Apr 7, 2022 7:17pm
Quoting Fantaburk
{quote} And about when did you get to put stops at break even? I think I'd moved them too soon alas get stopped out from the hd. Which I guess would have been a signal to get back in
Sorry to be so late I went to bed.

The stop is moved once price breaks below the HOOK (if we are short) but this is the third time to move the stop.

EG. I was long, now looking for the end of this run which is usually an opposing div. I see this opposing div and hedge short now I am stuck with long and short.

I don't know if either is going to win so when the hook forms I move the TP from the long to below the hooks bend and I tighten the stop on the short to just two pips above the high (spread distance)

The hook works and my long is stopped out and the hedge trade is now in control, I am expecting this hedge to run down to the 1 hour EMA which it did and I closed on this.

This is me trading with my new fiscal plan which is not for the 40 pips I used to go for.

We don't have to trade it this way, we could simply trade from one div to the other closing and re-entering as we go.
  • #7,730
  • Apr 8, 2022 12:31am Apr 8, 2022 12:31am
Thank you!
  • #7,731
  • Apr 13, 2022 6:11am Apr 13, 2022 6:11am
Hi alan, how much think factor involved while trading this method or one should follow the rules blindly, I mean signals etc, sometime I think how it could be go there and don't take trade and then after sometime I see price reach at that point, I want to ask that should follow the signals blindly or think before open a position? , usually I took trade and can't see a single bar in profit and close whenever it goes in profit.
Thank you for your patience
  • #7,732
  • Apr 13, 2022 7:02am Apr 13, 2022 7:02am
Quoting yahya11
Hi alan, how much think factor involved while trading this method or one should follow the rules blindly, I mean signals etc, sometime I think how it could be go there and don't take trade and then after sometime I see price reach at that point, I want to ask that should follow the signals blindly or think before open a position? , usually I took trade and can't see a single bar in profit and close whenever it goes in profit. Thank you for your patience
To me it is just a matter of measuring the potential distance price may go basing this on the EMA swings. Then getting on the lots to make my required profit.

Take a look at this 1 minute chart where we have a bullish div at the bottom which is the Day S1 level also a div on the 15 min and an RSI div on the 5min.

Lots to say take a chance on the long. I can measure to the EMA swing (arrow) and start loading long to make my profit.

Not always as clean as this and I could easily get stopped out for a little profit but if we don't try we die right.
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So apart from the trip down there was this nice trip back up again.
  • #7,733
  • Apr 13, 2022 7:50am Apr 13, 2022 7:50am
Quoting Nala66
{quote} To me it is just a matter of measuring the potential distance price may go basing this on the EMA swings. Then getting on the lots to make my required profit. Take a look at this 1 minute chart where we have a bullish div at the bottom which is the Day S1 level also a div on the 15 min and an RSI div on the 5min. Lots to say take a chance on the long. I can measure to the EMA swing (arrow) and start loading long to make my profit. Not always as clean as this and I could easily get stopped out for a little profit but if we don't try we die...
thats really cool, i watch every day this type of events but unable to cash them , one more thing which indicator you are using can you please share with us
  • #7,734
  • Apr 13, 2022 7:33pm Apr 13, 2022 7:33pm
Quoting yahya11
{quote} thats really cool, i watch every day this type of events but unable to cash them , one more thing which indicator you are using can you please share with us
You should have the indicator, it is the RSI Hidden over laid with the fast RSI.

I only have it setup like this on the 1 minute chart
  • #7,735
  • Apr 14, 2022 4:26am Apr 14, 2022 4:26am
[quote=Nala66;13968860]{quote} You should have the indicator, it is the RSI Hidden over laid with the fast RSI. I only have it setup like this on the 1 minute chart[/quote
thanks mentor , offcurse i have that , mentor is this true that hidden divergence covers more pips than rsi divergence ?
and my second question is , tomorrow market surprise me , there was a bearish rsi divergence on m5 and m15 but price goes long long away some 60 pips upward or more , then my question is how we survive where to place stop and how can we determine that rsi will overbought or oversold , i know on 4h there was a bullish divergence but after some time there was a bearish as well on 4h right on the ema but price cross ema and went very upward , very often on m5 price move according to m5 divergence atleast some pips that we place out stop to breakeven but last night it was not. hope you understand my question
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  • #7,736
  • Apr 14, 2022 6:00am Apr 14, 2022 6:00am
Quoting yahya11
Quoting Nala66
{quote} You should have the indicator, it is the RSI Hidden over laid with the fast RSI. I only have it setup like this on the 1 minute chart[/quote thanks mentor , offcurse i have that , mentor is this true that hidden divergence covers more pips than rsi divergence ? and my second question is , tomorrow market surprise me , there was a bearish rsi divergence on m5 and m15 but price goes long long away some 60 pips upward or more , then my question is how we survive where to place stop and how can we determine that rsi will
...
Yes I understand. What you are looking for is a bearish divergence in an up trending EMA...WRONG. You should be looking for continuation divergences to go in favor of the trend. The bearish divergences will often fail to make the EMA and so price makes a higher high. At the very best only expect a bearish div to be a hedge or a quick scalp. This is all when the trend is bullish.

Since the bearish div you have there did not even nearly approach the EMA should tell you this is a strong trend.
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  • #7,737
  • Edited 7:27am Apr 14, 2022 6:55am | Edited 7:27am
Quoting Nala66
{quote}{quote} Yes I understand. What you are looking for is a bearish divergence in an up trending EMA...WRONG. You should be looking for continuation divergences to go in favor of the trend. The bearish divergences will often fail to make the EMA and so price makes a higher high. At the very best only expect a bearish div to be a hedge or a quick scalp. This is all when the trend is bullish. Since the bearish div you have there did not even nearly approach the EMA should tell you this is a strong trend. {image}
yes this is good explanation , actualy my problem is nothing but my psychology i have panic , because i only open a trade which is one standard lot on one thousand account and dont make 2nd and third entries , my all is first and last trade , thats why when stop hit it lost so much. but i dont understand how to make entries clearly , and i always have panic that will signal work or not and i miss trade some time or some time enter when all is done and loss my position ,
can you have solution for this problem , pleas mentor i really need this

i just want 200 with 1000$ account and work only on your divergences, not on abcd and ab = cd, mostly look on m5 and h1 and then trade , i make much more on demo with this system but on real account not successful as i am on demo

i just want to master your system , how can i do this , i am ready to work hard like i can sit all night and all the time on the weekends , what should i do first to be master quickly or atleast to be manage some pips . i dont know why i dont get any experience while i am trading since 2019 but still like a new commer. i know many traders laughing at me but this is reality
  • #7,738
  • Apr 14, 2022 7:10am Apr 14, 2022 7:10am
Quoting Nala66
{quote}{quote} Yes I understand. What you are looking for is a bearish divergence in an up trending EMA...WRONG. You should be looking for continuation divergences to go in favor of the trend. The bearish divergences will often fail to make the EMA and so price makes a higher high. At the very best only expect a bearish div to be a hedge or a quick scalp. This is all when the trend is bullish. Since the bearish div you have there did not even nearly approach the EMA should tell you this is a strong trend. {image}
Thanks for everything you share, I have some questions hope you can cleary? In this case, why do you identify this as a bulish trend?

The first question, You identify the trend on HTF and enter the trade on LTF, right?

Question 2, How to distinguish trend and non-trend to avoid noise information?
  • #7,739
  • Apr 14, 2022 7:43am Apr 14, 2022 7:43am
Quoting wildfx102
{quote} Thanks for everything you share, I have some questions hope you can cleary? In this case, why do you identify this as a bulish trend? The first question, You identify the trend on HTF and enter the trade on LTF, right? Question 2, How to distinguish trend and non-trend to avoid noise information?
Firstly this is not a system it is a systematic approach to the many variables. People always want to find the easy way out. If we read a book we would expect it to be different from any other book. The only constants are the books contain letters and words but they can be put together in infinite ways. We have to read the chart as if it is a story telling us something.

1) Not always true even a pull back against the trend can pay good money. What I look for on the hour is a ZOO point, a place or level I expect something to happen.

2) At the appointed time London begins to fill orders and generally a trend of some description forms. This is clearly seen on the five min chart so if we are trading above the average then the trend is long and we should be looking for long signals.

I pay far more attention to the average than to the actual price and in respect of this I want to see where the average fails to make say a HH and a divergence generally stops the progress of the EMA to turn it and test the opposite side to make a LL.

Look at this daily chart. We see price is testing the average swing low (A). It runs into div and the div should take it back to the average (B) Now if the price breaks the average and the bulls FIND support we would expect it to test (C) the last average swing high. What are the chances of that happening, pretty low I expect. More likely it would make a series of ups and downs to cover such a distance.

This is a daily chart so the story could change many times as the plot unfolds. As day traders we don't have to think that far ahead so we read a shorter book with a quicker ending.

Hope this makes some sense...
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  • #7,740
  • Apr 14, 2022 8:10am Apr 14, 2022 8:10am
mentor sorry for interrupt but where is my reply i am waiting
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