I took this short. Inference on M15, price on the EMA. RsiDIV on M5. Target AB = CD.
Comments? 
Comments?
Trading the Cable swings via averages
Hello Alan, can you please help me clarify this. If EMA can't make HH, it will make LL instead.
The LL is red circle and when EMA finish breakthrough D, EMA can go up, down or sideway. Or green circle should be LL instead, and EMA must cross through green circle before it can go up/down/sideway, not red circle ?
Yesterday i loss all 5 trades by trying to apply EMA swing. Please let me know if i inference H1 chart wrong or not and how can i improve this?
H1 have few bar close above EMA 26, but it also never have bear support for the down move. Price just fall straight down and meet EMA swings (those 3 horizon white line is all EMA swing). Also, fast RSI is under 20 indicator sell weakness. So even price under EMA, i decide to buy and turn on M5 to find DIV. I also make sure EMA M5 make LL before play. Those 1,2,3 is place i choose to trade, and give up when price go too far from EMA swing.
The LL is red circle and when EMA finish breakthrough D, EMA can go up, down or sideway. Or green circle should be LL instead, and EMA must cross through green circle before it can go up/down/sideway, not red circle ?
Yesterday i loss all 5 trades by trying to apply EMA swing. Please let me know if i inference H1 chart wrong or not and how can i improve this?
H1 have few bar close above EMA 26, but it also never have bear support for the down move. Price just fall straight down and meet EMA swings (those 3 horizon white line is all EMA swing). Also, fast RSI is under 20 indicator sell weakness. So even price under EMA, i decide to buy and turn on M5 to find DIV. I also make sure EMA M5 make LL before play. Those 1,2,3 is place i choose to trade, and give up when price go too far from EMA swing.
- #8,036
- Jul 6, 2022 9:23pm Jul 6, 2022 9:23pm
- Joined Mar 2016 | Status: Trader | 6,378 Posts
Hello Alan, can you please help me clarify this. If EMA can't make HH, it will make LL instead. The LL is red circle and when EMA finish breakthrough D, EMA can go up, down or sideway. Or green circle should be LL instead, and EMA must cross through green circle before it can go up/down/sideway, not red circle ? {image} Yesterday i loss all 5 trades by trying to apply EMA swing. Please let me know if i inference H1 chart wrong or not and how can i improve this? {image} H1 have few bar close above EMA 26, but it also never have bear support for the...
You have completely missed the ABCD which I have added to your chart for you. These are very important swings of measurable sentiment where the competing bulls and bears are both winning between A and B. The bulls made it to the 50% level of the D target but were in divergence and this stopped them dead. The bears were then able to overcome and and make the target D1.
So for this type of trade your entry is the 50% level divergence with your stop at the 100% i.e. D. Your target is D1 and this is 3 x times the risk. Always watch for entries at the 50% levels which will give you 1 : 3 risk rewards'
This is why your longs failed.
Price is usually heading for somewhere for a reason, our task is to plot it and plan accordingly.
Here is the 1 hour chart with a new ABCD to keep an eye on.
That is a lot to consider so I'll leave it there and await other questions.
