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Trading the Cable swings via averages

  • #8,761
  • Jan 30, 2023 7:38pm Jan 30, 2023 7:38pm
Hi Nala,
I have a question, at this point (as picture below) I expected the price is gonna bound back, because:
- It have hit the resistance area,
- RSI show divergence and oversold
But the real is price still go down again, why does this happened? What am I wrong?
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  • #8,762
  • Jan 30, 2023 8:21pm Jan 30, 2023 8:21pm
Quoting Nala66
Grrrrr $6.51 profit and off to bed. Too many tiny stop outs today the darn thing will not run in any direction for any length of time.
Hi Alan, have a good day and I hope you get profit more and more. I know this isn't GBPUSD chart but the RSI (1) still is div and it can be the entry, right?
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  • #8,763
  • Jan 31, 2023 12:56am Jan 31, 2023 12:56am
Quoting longnguyenho
{quote} Hi Alan, have a good day and I hope you get profit more and more. I know this isn't GBPUSD chart but the RSI (1) still is div and it can be the entry, right? {image}
Yes, it can be used on any chart, You need to apply the 2 bar test to provide the entry and the stop.

We also need to determine the target to see if the trade is worth it.
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  • #8,764
  • Jan 31, 2023 1:11am Jan 31, 2023 1:11am
Quoting Nala66
Grrrrr $6.51 profit and off to bed. Too many tiny stop outs today the darn thing will not run in any direction for any length of time.
Welcome back, Master Alan!
We're waiting for your guidance!
  • #8,765
  • Jan 31, 2023 1:13am Jan 31, 2023 1:13am
Quoting Ferna
{quote} it ranged ffor about 8 days now, should i see it as rocketfuel for a new move?
I hope so.
  • #8,766
  • Jan 31, 2023 1:39am Jan 31, 2023 1:39am
Quoting Fiona96
Hi Nala, I have a question, at this point (as picture below) I expected the price is gonna bound back, because: - It have hit the resistance area, - RSI show divergence and oversold But the real is price still go down again, why does this happened? What am I wrong? {image}
Some common misconceptions here.

There is no such thing as oversold/overbought. The RSI measures the strength of the move relative to past performance. The key level is the 50% so a move up from this represents more buying strength. A move down from this level means more selling strength.

However, if the RSI is above the 50% level and starts to fall down it does not mean weakness it simply means there are equal longs and short buyers.

Conversely when below the 50% level and it starts to move up it does not mean bear weakness it simply means there are equal longs and short buyers.
>>>>>>>>>>>>>>>

This 50% RSI level is very important, your 70 and 30 levels are meaningless other than to show strong moves.

Price will always gravitate back to the 50% level which is represented on the price chart with a 26 period EMA.

With any divergence if price does not gravitate back to the EMA then it is going to make a LL/HH than the divergence.

This is because the price action is pulling the average attempting to make a HH/LL average.

A 2 bar test is a good signal to get in and place the stop with your 26 period EMA being the target for price to break.

Is this enough info?
  • #8,767
  • Jan 31, 2023 1:44am Jan 31, 2023 1:44am
Quoting LFrZero
{quote} Welcome back, Master Alan! We're waiting for your guidance!
And a happy new year to you and everyone else.

Hard to tell what the market is doing on this last day of the month. Sometimes it bolts sometimes it doesn't because there is no such thing as the word usual in Forex.

I am expecting to be disappointed again with today's moves. That way if I am correct, I won't be disappointed.
  • #8,768
  • Jan 31, 2023 2:08am Jan 31, 2023 2:08am
Master, is touching H1-EMA an inference?
If so, missed a good short.
  • #8,769
  • Jan 31, 2023 2:25am Jan 31, 2023 2:25am
Quoting LFrZero
Master, is touching H1-EMA an inference? If so, missed a good short.
Yep, and I am short on that inference. Locked in a little profit.

Bugger just got stop out again for a small prize $5.69

My fault though because I put my stop too close
  • #8,770
  • Jan 31, 2023 2:43am Jan 31, 2023 2:43am
I really don't know what to do now
  • #8,771
  • Jan 31, 2023 2:46am Jan 31, 2023 2:46am
This was my sad effort.
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  • #8,772
  • Jan 31, 2023 2:47am Jan 31, 2023 2:47am
Quoting LFrZero
I really don't know what to do now
Well doing nothing is a better option than losing.

Waiting is the name of the game.
  • #8,773
  • Jan 31, 2023 2:52am Jan 31, 2023 2:52am
If this 1-hour EMA is going to make the average LL then it is a long way down for price to reach the next level.
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  • #8,774
  • Jan 31, 2023 4:17am Jan 31, 2023 4:17am
Quoting Nala66
{quote} Some common misconceptions here. There is no such thing as oversold/overbought. The RSI measures the strength of the move relative to past performance. The key level is the 50% so a move up from this represents more buying strength. A move down from this level means more selling strength. However, if the RSI is above the 50% level and starts to fall down it does not mean weakness it simply means there are equal longs and short buyers. Conversely when below the 50% level and it starts to move up it does not mean bear weakness it simply means...
Thank you so much master Alan !!! I will keep practice !!!!
  • #8,775
  • Jan 31, 2023 4:32am Jan 31, 2023 4:32am
Hopeless day again so not disappointed then.

Better than yesterday at $12,31 but now I am a day behind schedule.

Played 7 trades and lost 2.
  • #8,776
  • Feb 1, 2023 1:53am Feb 1, 2023 1:53am
Still not seeing much to shout about. So far this week I have only been able to scalp, not a trade in sight. Grrrr
  • #8,777
  • Feb 1, 2023 2:48am Feb 1, 2023 2:48am
Gee this is stagnation on steroids, got $3.53 in the bank so far.....Whoopeeeeee!

On the bright side that is 0.01%
  • #8,778
  • Feb 1, 2023 2:59am Feb 1, 2023 2:59am
Quoting Nala66
Gee this is stagnation on steroids, got $3.53 in the bank so far.....Whoopeeeeee! On the bright side that is 0.01%
Sitting on my hands.
  • #8,779
  • Feb 1, 2023 5:37am Feb 1, 2023 5:37am
Look at that, one ABCD rejected at the 50% level, and it wasn't even 10 pips.
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Might look in later, eyes getting tired of videos
  • #8,780
  • Feb 1, 2023 10:25pm Feb 1, 2023 10:25pm
At last, a little price action happening albeit while I was asleep.

That small ABCD now looks sad against the much larger one now setup. Price has already checked out the 50% of D.

D itself is way up there close to next average swing high. If the EMA is going to make a HH then we should expect these targets to be hit.

The grid on the 1-hour chart below is 100 pips wide so a bit of movement is a foot.
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The monthly chart is also attacking the EMA but as yet has not made a price HH.

The weekly chart has a nice ABCD on the go.
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So too has the daily
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