GU Yesterday's short in New York failed. I'm disappointed because I was fooled by mm and ended up lowering the price.
Tokyo made a decent profit today.
I think London will rebound, but I will wait patiently and not rush.
The average has made the HH and price has hit the next average HH in divergence. This suggests a return to the EMA which it has now done.
Now we see if the price closes below the EMA a new ABCD will be formed. So, we have a waiting game to see in which direction it will go and trade it accordingly.
Note how there is nothing unusual about these moves despite it being a higher time frame.
On the 4 hour. The average has made the HH and price has hit the next average HH in divergence. This suggests a return to the EMA which it has now done. Now we see if the price closes below the EMA a new ABCD will be formed. So, we have a waiting game to see in which direction it will go and trade it accordingly. Note how there is nothing unusual about these moves despite it being a higher time frame. {image}
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Price is continuos heading to EMA D1, following downtrend now...
What is EMA H8? Price bounced at the 50% on the 1 hour chart... These are the ZOO points to watch for at the lower time frame charts. {image}
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I remember that you used to add EMA26 of 8H (26*8=208) on your h1 chart, so yellow EMA on my chart is ZOO point where I consider Price action. By the way, if ABCD printed by indicator, Price almost touched 50%D not as ABCD on your chart. It makes me so confused. Can you give me some advice?
Mine is drawn like this because the top is in divergence. I always take the shortest target. I don't use the indicator; I draw them in manually.
Now for your EMA's.
All the EMA's are 26 period relative to the time frame we are looking at.
So, on the 1-hour chart if we want the 4-hour ema. We divide 4 hours by 1 hour = 4 then multiply by 26 =104 period.
Likewise, if we have a 5 min chart and want to add the 1-hour EMA. We divide 1 hour by 5 min = 12, then multiply this by 26 = 312.
Thus, we can put multiple 26 period EMSs on one chart. Unfortunately, we can't go backwards by putting a 5 min on the 1-hour chart, but we don't need to either.
By the way I would also draw in the same ABCD you have there because I have never found which is the correct one, so I use both. Can't hurt hey! I'm not trying to save ink or anything.
Trading the Cable swings via averages
