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Trading the Cable swings via averages

  • #10,521
  • Sep 13, 2025 2:56am Sep 13, 2025 2:56am
Daer Alan,

After more than a year of studying EMA26 with two RSI14-5 lines, I feel more confident in trading. Before, when looking for candle zones to test divergence (DIV), I often made mistakes, leading to stop losses. (I also have a friend who is like a mentor to me, and it was through him that I got to know him. Both he and I are using this method, and it is really great.)

After spending time studying Fibonacci and Camarilla Pivot Points combined with my method, I see the setups much clearer and feel more confident in my trades.
For example, on this chart, when I spotted the divergence as well as the RSI divergence on the H1 timeframe, along with the key Fibonacci levels and the Camarilla Pivot Zone, I felt much more confident in entering a sell order, I also added the key levels on RSI14, namely 38.2 and 61.8, for more confirmation.
Also, when I looked at the swing highs and lows of the EMA26, I found that they matched the key Fibonacci levels quite well. Overall, it feels almost perfect — I can't even describe the magic of this matrix

Anyway, thank you for creating this great EMA26 method with the two RSI 14-5 lines. As for your in-depth AB=CD method, I haven't studied it yet.
What I'm still lacking right now is money management and trading psychology. I will continue to hone those things so that I can eventually make $1,000 a day like you.

Thank you so much for creating this great method
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  • #10,522
  • Sep 14, 2025 9:26pm Sep 14, 2025 9:26pm
Quoting MyHanh
Daer Alan, After more than a year of studying EMA26 with two RSI14-5 lines, I feel more confident in trading. Before, when looking for candle zones to test divergence (DIV), I often made mistakes, leading to stop losses. (I also have a friend who is like a mentor to me, and it was through him that I got to know him. Both he and I are using this method, and it is really great.) After spending time studying Fibonacci and Camarilla Pivot Points combined with my method, I see the setups much clearer and feel more confident in my trades. For example,...
This makes me happy to see...

As far as your money management goes, just stick to risking 1% to make 2%+ and when your confidence and account grow you can move on to risking 2% for 4%+. That is what I would do.

Perhaps you could show us a chart with your setup, a picture is worth a thousand words. The chart above just looks like a jumbled mess to me, I like to keep it simple.
  • #10,523
  • Oct 5, 2025 10:23pm Oct 5, 2025 10:23pm
Well, I gave others pairs a good go, but I am now back with the trusty GBP/USD. I think because other pairs take such a long time to hit targets, they are very erratic, and this is troublesome for finding entries. Back with the GBP/USD from the start of this month is like putting on a well-worn pair of comfortable shoes.

Here on the 1-hour chart I have put some of the ZOO levels. The Zs are ZOO scalps only one of which (?) failed for a break-even trade. Clearly making a minimum of 40 pips is not so difficult for those who are patient awaiting signals.
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Note how we spend much longer out of a trade being patient rather than in a trade. The grid on this chart is 40 pips and the EMA's respectively are the 1-hour, 4-hour and the daily clearly showing what the market is respecting. Couple this 1-hour with the 5-min and good or even multiple entries can easily be found to compound your bottom line.
  • #10,524
  • Oct 5, 2025 11:28pm Oct 5, 2025 11:28pm
Again, on the 1-hour chart is my concept of the EMA failures to make HHs or LLs.

When the EMA fails to make a HH or LL it will tend to test the opposite side.

We can see both the bullish and the bearish examples of this on the chart below.
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Knowing this we can take trades in the correct direction on the lower time frames if there are enough pips left to make our profit or part thereof.

In other words, I use this to determine to best direction the market is testing. The market will always test both directions and at these time frames we are witnessing the noise within the much larger time frames. If we trade the larger time frames, we have to cope with much larger drawdowns because of these swings so why not just trade these swings in the first place? There are plenty of pips to be had.
  • #10,525
  • Oct 9, 2025 1:11pm Oct 9, 2025 1:11pm
Lots of patience required for trading the daily chart.
First trade +210 added a second for +170.
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  • #10,526
  • Oct 10, 2025 2:09pm Oct 10, 2025 2:09pm
Trend is down and we have RSI divergence showing on the H1. Lets try a scalp long. Time now running out for this week . Trade closed. +65
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  • #10,527
  • Nov 3, 2025 2:07am Nov 3, 2025 2:07am
Hi Alan:

You have introduced us a book before, Technical Analysis for the Trading Professional by Constance M. Brown. Do you use it or have any opinion about the Composite Index that is derived from RSI by building in volatility elements? I found the author keep the usage secrets of this indicator to her chest. Any comment if this indicator can complement RSI function in our trading? Thank you
  • #10,528
  • Nov 7, 2025 9:36am Nov 7, 2025 9:36am
Quoting limth
Hi Alan: You have introduced us a book before, Technical Analysis for the Trading Professional by Constance M. Brown. Do you use it or have any opinion about the Composite Index that is derived from RSI by building in volatility elements? I found the author keep the usage secrets of this indicator to her chest. Any comment if this indicator can complement RSI function in our trading? Thank you
This is one of the most comprehensive books I have read but someone has borrowed it permanently and I can't remember who.

I read books looking for ideas that may compliment the way I trade but so much reading delivers very little.

All I want is a good method of entry, a solid stop and a determined target to aim for.

The important things for me are to find the places where price is failing and the place where price is likely to test the opposite side.

Since the US shutdown I have not been trading because the market tends to be a tad erratic, so I am having a rest.

The problem with volatility is that it is sporadic by nature, so it doesn't work for me. Better to be on the right side of a trend so if price is north of the 5 min EMA, I should be long and vice versa. All we really need on a trend is a test method for an entry and a short stop since we have the direction.
  • #10,529
  • Nov 9, 2025 3:02am Nov 9, 2025 3:02am
Slow and steady wins the race with daily chart trading. Winning and losing trades in the mix but keep the winners bigger than the losers.
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  • #10,530
  • Edited 6:38am Nov 10, 2025 12:44am | Edited 6:38am
Quoting 40PipsAlan
Slow and steady wins the race with daily chart trading. Winning and losing trades in the mix but keep the winners bigger than the losers. {image}
So how do you determine your trades. In the morning prior to work or in the evening after work?
  • #10,531
  • Nov 10, 2025 12:50am Nov 10, 2025 12:50am
Sold at 4077 SL 4102 mental
Touched at daily 20 SMA
Expected swing 4020
The Phoenix Trader....
  • #10,532
  • Nov 10, 2025 3:34am Nov 10, 2025 3:34am
Quoting Nala66
{quote} So how do you determine tour trades. In the morning prior to work or in the evening after work?
Hey Alan. I start with my daily bias. Daily chart with lots of lines drawn in for the EMA swing levels.
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I dont trade from this chart just use it to give me the direction i should be going in (selling mostly). I then look at the H4 for bear support signals at the daily swing levels.
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If I cant see any bear support on the H4 i go to the H1 and look there for bearish divergence, RSI in the overbought zone, price testing the daily ema swing level and not crossing it. Chart time is not on my side now so I have to make a judgement call as to stick a punt on. Using very small lots so I can get a bigger SL and let it ride. Get to BE soon as possible.
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Currently in a Long trade aiming for the daily EMA target but we have H4 and H1 bear divergence showing so might kick me out.
  • #10,533
  • Edited 5:55pm Nov 10, 2025 6:34am | Edited 5:55pm
I just got paid... Standard trade.
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Not as large as I would have liked but it gets me off and running for the week.
  • #10,534
  • Nov 11, 2025 8:07am Nov 11, 2025 8:07am
Paid again but this was a hairy start. Couldn't move the stop to BE until it crossed the EMA.

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I could have made a second entry a tad lower, but this breaks the rule of adding to a losing trade. Rules is rules
  • #10,535
  • Dec 3, 2025 4:49pm Dec 3, 2025 4:49pm
At long last we have had some significant movement, perhaps the biggest in the history of the world!
  • #10,536
  • Dec 17, 2025 1:47pm Dec 17, 2025 1:47pm
Some trading updates. Lots of ranging of late and little screen time. Finally a breakout long yesterday so target the high from the 11th Dec with Trade 1.
H1 divergence showing so moved my stop up and got kicked out for +16. See a continuation on M5 so jumped in again with Trade 2 to reach my original target for +18
More H1 divergence so looking to target the last H1 EMA swing level at around 45 pips away. Got trade 3 going and target reached.
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  • #10,537
  • Dec 18, 2025 12:31pm Dec 18, 2025 12:31pm
Lets grab another +35 pips today. Currently in a sell trade at BE.
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  • #10,538
  • Dec 21, 2025 8:09pm Dec 21, 2025 8:09pm
Friday was hopeless for me. I won a bit, lost a bit and ended just about break even on the day. So, my loss was in time wasted.
  • #10,539
  • Dec 31, 2025 2:51pm Dec 31, 2025 2:51pm
Happy New Year Guys.
Interesting how H1 support levels (close of the support candle) crop up time and again. Problem is screentime to look for H1 divergence at these particular ZOO points.
A M5 reversal candle at these ZOO points is usually good for a few pips depending where the next H1 support level sits.
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  • #10,540
  • Jan 2, 2026 1:06am Jan 2, 2026 1:06am
Quoting 40PipsAlan
Happy New Year Guys. Interesting how H1 support levels (close of the support candle) crop up time and again. Problem is screentime to look for H1 divergence at these particular ZOO points. A M5 reversal candle at these ZOO points is usually good for a few pips depending where the next H1 support level sits. {image}
To get yourself in a tad earlier rather than waiting for the support... Put a trend line on the RSI, this breaks earlier than the price chart. I put the stop in place so if it gets back across the trend line I close.
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