Trading the Cable swings via averages

Maybe this bar will become the long-awaited support?

H4 new buy triangle. Bears have found support on the M5 at the hook and now H1 pulling back looking for support to continue the upward move.

Just look at that, the bears stopped the EMA right on the line.

I guess you mean this. Dont you ever sleep Alan?

Yes, and sometimes.

I got my pips from the up move at the 1o5. This was a div and an ABCD (not drawn in)

After my time we see the bulls run into a 5 min div at the 1-hour ZOO, the target in this case would have been the 1-hour EMA which is a ZOO and a 5 min bull div eventually testing the bull support (bear resistance).

So, lots of action and plenty of signals to make a few bucks.

Reading the charts like this will make you money. Ignoring the charts and trying to think trades will lose your money. I guess you are all aware of what I think about news and theories.

Adding some Zoo points ready for London open. We are above the EMA on H1 and H4 and we also have Bull support on both, so my bias is to go long unless there is an opportunity for a scalp back to the H1 EMA. The average is trying to make a HH so I will be watching 1.16380 and 1.16754 areas for my targets. All being well we will get a buy signal on the M5 and we can make the first target around 60 pips away.

Got my 1% today. Same again tomorrow please.

Got divergence on the H1and M5. M5 EMA now broken and we have Bear support. Possible return to the EMA and then a go at the 1.17133 level? Daily EMA just a short distance away.

And theres the hook. followed up with a ranging situation waiting on US open. M5 EMA doesnt want to be taken lower it seems.
Failed to take the EMA lower so up its goes.

Ok whats the plan for London open. My bias is still long due to H1 and H4 being above the EMA. Price looks to be stuck between 2 levels and the EMA is trying to make a HH. So I will be waiting for some inference on the H1 unless this level 1.16754 holds long enough for LO and then I will be sitting on the M5 looking for a long signal there.

Well today was a disaster losing yesterdays profit and a bit more. Lots of ranging on the M5 kept hitting my SL as well as my attempt at hedging also hitting SL. I need to be more aware of when this happens and stay away from it. We survived to trade again tomorrow.
I expect Alan got his TP on the run up after the GBP news or maybe managed to ride the 20 pip swings thereafter. A tough ride.

Remember this ...
The bulls were only allowed to push up to the EMA before being smacked right back down again. Daily ZOO points don't come along every day we may wait weeks.

Turning our attention to the 1-hour chart we ask ourselves why are the bear divs not making the EMA, something is afoot my dear Watson. That is why I was keeping an eye on that Daily chart.

So, what happened?

The bear div above the EMA (Green line) was a ZOO and we had to wait the hour or so for it to kick in (probably waiting for news). The first div left of the X failed and we got the HH as a result.

However, look at the target prices respectively 225 and 230 pips. These were well worth the risk of a few pips. Get the pending orders in boys we are going for a rapid ride.

The pattern never changes you just have to open your eyes and see it. Then plot it and trade it.

Now our interest is in the bear support on the hour chart.

The EMA has dropped below it, so the bulls have the opportunity to also find support and take it out. It takes a bull support to take out a bear support.

The bears need to hold position to get that EMA as low as they can (often termed consolidation) whereas the bulls have to try to stop the drop. So, we can expect a period of small moves until something breaks.

There are many things to observe on this one-hour chart.

See how the down move eliminated any chance of an ABCD forming.

See how the bears had to fall back to find support in order to take out the bull support. Just enough is good enough.

See how precisely the average swing lows were hit by the price.

See how it was the bear div above the swing high average that kicked in short.

See how this top was the ZOO of the daily.

See how the move was preceded the day before by a flat market, always a heads up.

I got my 40 pips. however it is not clear to me where I should have put the hedge. I thought it would be okay to put it on the bear support but I'm not sure. I was confused at the time after the price broke that support. I closed the hedge when the price returned to EMA. But at that point I wasn't so sure that the price would continue to rise because the bulls had not found support.

Price is trying to pull the average up to make a HH. This could be 1.15324. Is also looking like we have divergence for a trip back to the EMA. On the H1 it has returned to the EMA.
I am in the long and waiting to see what happens.
EDIT:- closed out for +42

Pushing for the H4 EMA 30 pips away?
Yesterdays losses recovered. Now up +2.5% for the week

Perhaps this will help to point out the supports

See how each takes out the other.

Easy trading today.

Bull div on the hour = ZOO

Plenty of pips there.

Having bright candles on the chart is very distracting to me. I want only what I need to plot the chart in my fashion.

Here are the components of the 5 min chart.

Look how clean, clear and crisp all the action can be seen.

The 1-hour EMA was the target because that is what the 1-hour chart said with the bull div.