Trading the Cable swings via averages

Quoting Fantaburk

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{quote} If you don't mind me answering. I would say we are never certain, but working with probability rather. That is why taking inference from higher timeframe is important. When you trade from a h1 ZOO-point, you can look at which m5 ema levels that are likely to fail and therefore which ones that should be tested.

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Quoting Nala66

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See how determined price is in getting to the AB = CD. Now something else for later consideration. If this is a three wave push of AB = CD's it could well be what is termed a Goodman wave (Elliot had 5 waves) If this is the case then we could see a huge drop following the execution. I am not a follower of wave theory but always have it in mind. {image}

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Quoting Nala66

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See how determined price is in getting to the AB = CD. Now something else for later consideration. If this is a three wave push of AB = CD's it could well be what is termed a Goodman wave (Elliot had 5 waves) If this is the case then we could see a huge drop following the execution. I am not a follower of wave theory but always have it in mind. {image}

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Quoting wilyno

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{quote} Hi Alan, could you elaborate on the Goodman Wave? There was a drop on Friday. Is that what you are referring to?

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Quoting Nala66

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Not sure what this chart is telling us yet. The bears have retraced to the 50% level again, then we had a bull HD. So I would wait to see if it crosses the EMA or if it makes a LL than the HD. {image}

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Quoting Nala66

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{quote} Your 5 min chart is way out of whack corrected in pink below... {image}

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Quoting eliotjng

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{quote} Dear Alan, can i ask why this DIV is wrong? In the post 1734 and many other post, i saw you draw DIV as megaphone pattern, too. Please let me know if i'm missing something.{image} My thought at that time: RSI overbought + DIV possible + under EMA H1 --> i’m look for short both both 1-2 on M5. At 2 i also have bullish bias and try to find any DIV suggest buy, look back i'm too focus on DIV and not notice zoo point 50% fibo AB=CD. {image}And that lead me question: Do you have any criteria to know if DIV will fail to make price return to EMA...

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Quoting Nala66

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{quote} I can't see anything wrong with these Divs but I have no idea what a megaphone pattern is! My interest is only in the London session, it would be a rare day not to make my profit then.

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Quoting eliotjng

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{quote} Dear Alan, i'm sorry if my question make you confuse as English is not my native language, so i will try again. Is the DIV draw like this is wrong? Because you are draw X signal on those DIV line ( I have highlight it with red circle). {image} As you see chart below, point 2 is bullish DIV and later point 3 is bearish DIV, all happen before London session. Because we are under EMA at that time, i have short bias and bear DIV at 3 confirm that, so i'm short when London session open and loss. So i wonder in what situation the DIV will fail...

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Quoting Nala66

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{quote} 1) Look closely at your first chart. The yellow lines on your RSI do not line up with the pivots on your price chart. So they are drawn incorrectly. 2) The divs return price to the EMA they then have to cross and find support if these are counter divs. If they are continuation divs then there is no EMA involved they will simply continue the trend until it ends. All this happened!

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Quoting eliotjng

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{quote} Dear Alan, could you please talk more about this ? "The yellow lines on your RSI do not line up with the pivots on your price chart" We have type of 3 DIV: a) RSI 14 and price DIV b) HD c) Fast and Slow RSI DIV On my chart, fast and slow RSI clearly DIV (fast RSI go up and slow RSI go down), exactly like your chart below (point 1) {image}

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Quoting Nala66

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{quote} {image}

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Quoting Fantaburk

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Hi Alan. I wonder how you would play this hedge when TP is right about made. There was more to collect on the bounce, but I always have a hard time to decide when to close out the original trade and move to BE. Thanks again for having me trade in the right direction through your efforts here! {image}

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Quoting Nala66

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{quote} Not quite sure what you are saying here. I see the hour having hit the EMA swing high (A ZOO point) so we look to the 5 min to see if we have a div there to support a down move. With hedging it is simply a protective device when you are unsure. Everything gets locked up except for the hedge spread cost, so all your money is freed to continue trading.

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Quoting Fantaburk

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{quote} Oh yeah, no I mean when I enter a hedge I never feel confident to close one side to bag the profits. Hedging is still lacking in my arsenal and I wonder how you use to play it in different scenarios.

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