Trading the Cable swings via averages

Hey Nala,
Any advice for trading this slow upward channel we are in at the moment? Seems to be a lack of divergence on the H1 so looking for divergence on the M15 at the channel edges which seems to be playing ok for now and grabbing small pips in both directions. We are above the daily EMA so maybe looking for buys is the way forward. The H1 ABCD is long ago now. Who knows.

Hell of a week but managed to add a couple % to the demo account. Lots of ranging going on here and signals lacking.

The manual trading account lives on to fight another week.

Not spotting much action this week at the right times in between work issues. Never mind +$25 is better than -$25.
Demo account reaching +44% since Nov 1st so happy with that too.

Hi Guys, I am finally back after my long absence due to technical problems with PC.

Sorry about that, you may have thought I was ignoring you all.

Hi Kev, my Skype has now changed, and I have lost all my contacts from previous.

Also, all the email records I had are also gone into the digital black hole.

Send me a private post with your email and I will establish a new connection.

No point in me going over the past posts I missed, they are long gone now.

Thanks for all your well wishes.

This is a new year so let's start afresh.

Just for a reminder I have done the basic structure on the 1-minute chart.

The structure remains the same on any time frame it is just that the duration changes and the target sizes.

If we look at the monthly chart, we see the average has remained as flat as a tack for quite some time. No major moves in sight just yet.


Not a lot to get excited about but it has its moments for us to make a few bob.

Let's take a look at the profit/loss situation on that 1-minute chart.

The distance from the div to the target is only about 12 pips. Even less say 10 pips when we include the spread.

Well in this case there is no way I can make 2% profit because the cost of the lot size for 10 pips is too great no matter how much money we have.

1% profit is doable though or a little more. So, I would trade for 1% and risk half a percent in this case. This would mean a 10-pip target and a 5-pip stop. Even at this 1-minute level this is a pretty tight trade to be in on.

Take a look at this previous trade. Risk is 1 box; profit is 2 boxes. We managed 1 box profit before this thing turned on us and almost stopped us out. In this case we actually win the trade but only by the skin of our teeth. The trick is to get the stop to BE once we cross the EMA and thus, we would have been stopped out for no loss ready to take the next trade.

The best trades to take are when the profit target allows you to use the least lots to obtain the result you want i.e. 2%. Better to look at the 5-minute chart.


Here we see from our timeline entry we have a target of 110 pips. In this case we can easily afford the lot size to make 2% profit irrespective of our account size. We can also add to our trade and make a tad more profit.

Trying to do this later in the day is much more difficult as the market gets more choppy.

So tonight, I have the div at D. (Entry)
A is the swing high average to break.
If A is to be broken, then the price target is P the next swing high average.
S is where bull support was found.
Our stop is 50% of the D to P distance.

It took a while, but it got there.

The bear div at the top could be a short if not enough money has been made but I won't take it being done for the day.

I spotted the divergence on the M15 TF. Jumped out at +35Pips

Welcome Master. You are back.

Yes, and note the 15-minute chart has not yet reached its average swing high at about. 1.2666.

It was stopped short yesterday by a bear div but has not crossed and found support below the average, so I expect some more up move today.

Two trades today. One long and one short.


The first one took a long time beginning with the div at the swing low average with a very erratic climb to the target average swing high.
It hit the target in div causing the down move to the average swing low target.

Nicely spotted Alan.
For those watching other TF like this M15 chart (i find the M5 very twitchy), we have similar divergence signals. I missed the first long as busy doing my proper work and I am still short on the 2nd Divergence signal.

As I said the other day, I was waiting for the 15min chart to hit the swing high average. When it did hit, I presume this is where you went short on the bear div signal. I think 1.2666 is what I quoted.

No trade for me today. I simply regarded the target as being too small.


Sometimes it is better to take a break rather than take a risk.

Again, it looks like currency is not the trader's flavor of the month at this time.

The 1-hour chart is just bouncing along going nowhere.



What we need is a decent break one way or the other. I am not going to guess which way.

Patiently waiting for the 4-hour to cross the EMA and find bull support.