I don't think anybody can predict whipsaws with a finite degree of accuracy, especially on Cable which is notorious for heart attack rhythm without so much a drop of a hat's notice (Dependant time frame traded).
However, if you want to distill things right to the very basics, simple trend lines can be most effective. Once a trend is broken, price attempts to reassert itself back into the channel but fails, this usually leads to a period of volatility as the market determines which direction to take next.
Utilizing 'top down' analysis by viewing the largest time frame trend first and then each increment of time thereafter (thereby viewing trends within trends) will give you are much more macro aspect through the looking glass rather than assessing 2 dimensionally on one chart only.
Lead warning of breaks on minor trends when a larger trend is weakening can save you many times and is an excellent method if you wish to try pick swing points.
Apart from this I find Stochastics excellent indicators in defining early break of trends before you even see it manifest on price chart action. Stochastics will let you know when the market has begun trending again long before you are able to have enough price reference points on chart to build a trend line. This is why it's all well and good to look historically at charts and see a trend in its completion saying " I could have traded here, here and here because here is the trend line". Unfortunately when you are trying to view the right hand side of chart (blank screen) things are nowhere near as simple and trends are often over by the time you realized they were occurring.
There is so much more to it and Cable is probably the hardest currency to assess so I suggest going for something with smoother even cycles with greater predictability like EUR/USD. It may not be as sexy, with lower pip returns but the volatility is down and remember, you only need 20 pips a day to make tremendous equity progress. Have a look at the Asian session, its quiet cycling in a smooth sideways movement with day to day consistency is something to behold and excellent for scalping.
I spent 4 years developing a methodology that actually loves whipsaw markets and trades the breakout. After considerable expense I had this automated because its something the human eye finds very hard to detect and must work on very fine but robust dynamic tolerances. Unless you have an edge, be careful trading Cable.
Hope this helps.
FxN
However, if you want to distill things right to the very basics, simple trend lines can be most effective. Once a trend is broken, price attempts to reassert itself back into the channel but fails, this usually leads to a period of volatility as the market determines which direction to take next.
Utilizing 'top down' analysis by viewing the largest time frame trend first and then each increment of time thereafter (thereby viewing trends within trends) will give you are much more macro aspect through the looking glass rather than assessing 2 dimensionally on one chart only.
Lead warning of breaks on minor trends when a larger trend is weakening can save you many times and is an excellent method if you wish to try pick swing points.
Apart from this I find Stochastics excellent indicators in defining early break of trends before you even see it manifest on price chart action. Stochastics will let you know when the market has begun trending again long before you are able to have enough price reference points on chart to build a trend line. This is why it's all well and good to look historically at charts and see a trend in its completion saying " I could have traded here, here and here because here is the trend line". Unfortunately when you are trying to view the right hand side of chart (blank screen) things are nowhere near as simple and trends are often over by the time you realized they were occurring.
There is so much more to it and Cable is probably the hardest currency to assess so I suggest going for something with smoother even cycles with greater predictability like EUR/USD. It may not be as sexy, with lower pip returns but the volatility is down and remember, you only need 20 pips a day to make tremendous equity progress. Have a look at the Asian session, its quiet cycling in a smooth sideways movement with day to day consistency is something to behold and excellent for scalping.
I spent 4 years developing a methodology that actually loves whipsaw markets and trades the breakout. After considerable expense I had this automated because its something the human eye finds very hard to detect and must work on very fine but robust dynamic tolerances. Unless you have an edge, be careful trading Cable.
Hope this helps.
FxN
CSizzler***
