Trading the Cable swings via averages
- #9,324
- Jan 10, 2024 5:50pm Jan 10, 2024 5:50pm
- Joined Mar 2016 | Status: Trader | 6,378 Posts
Bugger, why didn't I see this yesterday? I must be getting old. 
Well, no good now in hindsight.
Well, no good now in hindsight.
- #9,331
- Edited 3:11pm Jan 24, 2024 2:53pm | Edited 3:11pm
- Joined Apr 2019 | Status: Trader | 1,996 Posts
- #9,336
- Edited 4:12am Jan 27, 2024 3:46am | Edited 4:12am
- Joined Mar 2016 | Status: Trader | 6,378 Posts
H1 Divergence found today. Went in too early as usual and closed too early as well. +18 Pips Need to improve on entry and exits. {image}
In other words, let price come to you don't chase it.
So, in practice it works like this below...
When trading this way, I like to set a ten-pin stop and allow price to come back to my pending position to pick me up. Thus, my lot size, stop and target are all predetermined with the pending order. Once I get the stop to BE +1, I can walk away and check back later.
- #9,338
- Jan 28, 2024 10:01am Jan 28, 2024 10:01am
- Joined Mar 2016 | Status: Trader | 6,378 Posts
{quote} Hi Alan, I am guessing your H1 inference was the 50% levels of the ABCD? No divergence apart from the one I jumped on afterwards. Its a tricky call when there is no divergence on the H1 as the M5 has lots of divergence opportunities that turn out bad and there is always some hesitations around the 50% levels. Maybe a case of taking a punt if the signal say do it. {image} {image}
Put this all into a trade and I have timing, entry signal, target and stop, all the requirements are there.
Later that day was a new signal to go short, but I was done and dusted by that time.
Remember we only need a ZOO point on the hour which is not always a divergence. Then measure to the target swing of the average to see if the trade is worth it.
Here is another type of ZOO point to test for a trade. Price makes a HH than the previous average, but the actual average does not. I see this as another form of divergence, i.e. price is divergent with the average. So, I would be testing for a short at the lower time frame or long as the case may be.
- #9,340
- Feb 2, 2024 12:42am Feb 2, 2024 12:42am
- Joined Mar 2016 | Status: Trader | 6,378 Posts
This was my last couple of days on the 5 min chart.
Note how the market has gone completely flat at the average high. Looks like the market is taking a nap for the NFP later.
Note how the market has gone completely flat at the average high. Looks like the market is taking a nap for the NFP later.