Trading the Cable swings via averages

Seeing nowt thus far today.

I lost a few pips when I went short at first, but with the HD on H4, I’ve covered my losses now.

I just got paid.

I was also long a little earlier but only got a few pips from that.



Once again it was the 15-min chart.

Well, done. I completely missed that HD.

Nice...


15 min rides agin.

That was also the 1-hour ABCD D1 target.

Bad news for GU caused a sharp drop in price, and I managed to gain around 30+ pips with a short position.

The price isn't crossing above the EMA on the M5, so I’m continuing to take short entries.

Okay, hit BE, can not make a bonus.

Today's target has been hit...

That was close enough to that second target for me. I am off to bed...

Jumped on this one after our trade time. Reached first target and bailed out for +23 pips after H1 showed bearish divergence.

There is a bulldiv at ZOO = H1 EMA, with 20+ pips gained so far.

Cant spot this one. Got a picture?

Here you go...

All I can do is show you all just how my trading method repeats over and over again.

The thing with chart reading is that it is difficult to see the wood for the trees. The market will twist and turn to disguise its action and sorting through the mess can be difficult. To handle this, I look for the key points shown in the chart above. Price has always and will continue testing price in both directions raising and lowering those averages accordingly.

The next thing for consideration is how we handle our money. What are we prepared to risk should we be wrong and what are we trying to gain for this risk? I will risk 20 pips for a 40 pip gain any day of the week, but this is rather an incomplete statement because there are a few variables to consider also. For one example, if the target is only 35 pips, then I have to raise my stake to make the same profit. To put this in numbers, if my aim is to make $100 for 40 pips then I need to trade at $2.50 per pip. If the target is only 35 pips, then 100/35 = about $2.80 per pip. If we have a much larger target, say 80 pips then this is Christmas time for me.

I always trade when the market tends to have to most movement. A flat market makes it very difficult to make any money and I'm not in it to waste my time. I don't know if the market is going to perform or not, I simply assume it will and by far the most times I will be correct.

Protection of the account is of paramount importance so if I am wrong in my analysis I get out for very little loss. I can add these losses to my target to get both my losses back plus my profit. It is a rare day when I lose 1% and if I do, I will take the rest of that day off so I can have a good cry about it.

Patience is something most traders completely lack. Most just guess the direction and close on the fly. No structure to the trade at all other than a load of bullshit theories. I wonder why they lose...Duh.? It can indeed be testing of a trader's will to wait, the trigger finger is always posed to get in for whatever reason and get out for fear of losing it all again. These are the people who talk of psychology and such stuff as planetary alignment or what happened this time last year.

I cannot tell you how many people I know of that have lost huge sums of money THINKING they are going to get lucky one day. When that day comes, they have no money left to trade with. They are not prepared to take the baby steps before they complete in the arena of blood and death through lack of skills.

This is why we spend a considerable amount of time developing a complete trading plan and develop the skills needed to make it happen. I have mine which may be totally different from others. It is the plan that matters not the details. If I was to teach trading this would be the first student project and then all subsequent actions would be measured by this standard operational protocol.

Nuff said...

Just take a look at this daily chart. How can anyone possibly not make money by simply trading the averages. There is no theory or obscure wordage involved it is simply what you see is what you get. All these magenta circles are great ZOO points paying hundreds of pips.

This chart is great for those of us who work and need to be very selective of the opportunities. We can place pending orders together with the appropriate stops. We could easily risk 50 pips ($50) for a reward of 100 pips ($100) or more.



When we up the trading distance like this we can also up our risk/reward because the lot size needed is much cheaper. A 2% risk for a 4% reward is very achievable.

You truly amaze me! It turns out that until now I hadn’t paid attention to the support/resistance levels you demonstrated in the example chart. Those are really potential "ZOO" zones that I should have noted. Thank you so much for opening my eyes.

Actually, I try not to say too much hoping you guys will figure stuff out for yourselves. The reason I posted this is because I just read about someone losing another fortune and thought it a good idea to add more protection for you guys.

See how you can apply the same principles to the 1-hour chart below...



Remember though that ZOO points are to be looked at via the lower time frames.

We can see on this one-hour price is respecting the 4-hour EMA quite a lot. So, if we mark up the 4-hour in the same way we get an even better picture. This is what our analysis time is used for, then we do our sums from these various ZOO points. All this before we even contemplate taking a trade.

PS.. I don't really call these support and resistance levels it was just easier to explain them this way.