Trading the Cable swings via averages

Quoting Nala66

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{quote} 1) Yes, this is a valid ABCD triangle (Not AB=CD which is the lightning bolt pattern) I don't say if A is in divergence, it should not be considered. I say that the pivot it is in divergence with should be considered first because it is a closer target. In this case it hit both, {image} Observations... Look below to the left of the div to see if there is a potential B point. Look where I have put the X, this was also a div with a potential B point. The div failed so a HH is expected so we always need to protect ourselves by putting the stop...

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Quoting Mike3000

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{quote} The pivot being compared was tiny and it was the 06h00 1h bar from the 27th May. I've attached the following as an explanation for why the indicator won't show the HD: {image} Essentially the RSI is divergent at a price slightly higher than the pivot bar's closing price, but pulls out of divergence when moving up to the high price, and is divergent once again when snapping back. My guess is you likely would still consider this HD but just want to confirm.

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Quoting Nala66

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Been watching this 15 min ABCD. Darn thing didn't hit so I closed anyway with good profit. {image}

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Quoting Mike3000

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{quote} Very nice Alan. Was your reasoning for the trade that you were looking for shorts at a higher timeframe ZOO, which in this case was the 1h EMA, and entered after the RSI div on the 15 min at its EMA swing level? I can see several opportunities on the 5m after bear support was found too. {image} Do you place any importance on the formation of a series of ABCD patterns in relatively quick succession, as per the 15min chart from yesterday?

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Quoting Mike3000

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4H 1H, and 15m EMA's trending down but 5m stuck between ABCD 50% ranges. Also have 2 AB=CD targets on either side. Guess patience is the order of the day today. {image}

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Quoting Nala66

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{quote} I see what you have done here. The larger of your triangles should not exist it is the smaller one that came first anything else is just the journey. Here is my 5 min... {image} On the 5 min chart these are quite small journeys. Better to look for something larger on a higher time frame,

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Quoting Nala66

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Oops I made a mistake with my daily drawing. The triangle breakout target was the same as the EMA swing high, 1.3530. {image} The target is 1.5 x the distance of (a to B) from the breakout.

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Quoting Mike3000

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{quote} Alan, I've been looking at the charts for these triangles and they are numerous - what are your expectations for a suitable triangle? For example in the image below price went from a swing high to swing low and I can see 2 triangles (first one where the dotted line is drawn from swing low, and second one all solid lines). Would you only consider the first triangle in this sequence to draw the target from? {image}

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Quoting Nala66

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{quote} I assume you are referring to ABCD triangles of which neither of the ones you have drawn are anywhere near close. C has to be in divergence with either A or B. In other words, C has to be on the opposite side of the EMA than A or B. Does that help or do you need further explanation. >>>>>>>>>>>>>>>> If you are referring to the wedge triangle then you have to keep adjusting it when price gets back inside. I don't know what chart you are looking at but see if the chart below panned out... {image}

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Quoting Mike3000

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{quote} OK, thanks Alan - I was referring to the wedge triangle, and it makes more sense now.

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Quoting Nala66

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{quote} But did it make its target? I have no idea what that chart was.

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Quoting Mike3000

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{quote} Yes, it made it as below from the 1 hour chart (30 May ~15h00 onward). {image} I'm assuming these wedge triangles are only used for targets, and not for breakout trading because of the structure adjustments when required?

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Quoting Nala66

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The 1-hour is ranging between the two 50% of the ABCD... {image}

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