If you expect price to drop then look for divergence at extremes by looking at the tops (higher vs lower highs). If you expect price to increase then look for divergence at extremes by looking at the bottoms (lower vs higher lows). Cheat sheet here. ...

Trading the Cable swings via averages

Remember, the higher timeframe divergence happens before the 5M divergence. After the Frankfurt open you trade the 5M divergence in the same direction as the higher timeframe divergence. Today, the initial 5M divergence at extremes actually happened ...

Trading the Cable swings via averages

Simon_says. The 5 min is an example of divergence RSI 14 has a lower higher (down) and the RSI 5 has a higher high (up). The other two examples are not divergence - the RSI 14 and RSI 5 are moving in the same direction. The best spot to look for ...

Trading the Cable swings via averages

Nice 50 pips after the London open. Textbook!

Trading the Cable swings via averages

In the example above it’s the divergence between the RSI (5) and RSI (14). It’s shown by the yellow lines in indicator window 1. The first example has RSI (14) rising between the 2 closest tops and RSI (5) falling. This indicates a downward ...

Trading the Cable swings via averages

yeah, daily range is about half of what it usually is. I am out until after New Year.

Trading the Cable swings via averages

Weird price action - only a 10 pip range for the FF session so far. May have to wait for London for anything to happen, unless they are also off for Xmas

Trading the Cable swings via averages

I'm short at 1.2657, based on the 30 min bearish divergence, but will have a tight stop

Trading the Cable swings via averages

yeah, scrapping it out between 1.2260 and 1.26558 at the moment - the immediate 5M SH and SL. Also, the H1 EMA is at around 1.26619

Trading the Cable swings via averages

Looks like a Bearish Allan could be forming in the M5 - likely prior to Frankfurt open

Trading the Cable swings via averages

Alan While I understand the concept of bull/bear support, I need some more clarification on how it fits into your strategy. I understand the significance of the 26MA (the backbone) on the higher (say H1 or 15M) and the lower (say 5M when scalping) ...

Trading the Cable swings via averages

ok. Make sure you drag the RSI 5 over top of the RSI 14. Then it should work. If you drag on the main chart then it will open a new indicator window.

Trading the Cable swings via averages

The more expansive RSI is usually due to 1. the RSI 5 being set to the previous indicator's data, or 2. the fixed minimum/maximum being set to 0 and 100. Just a thought

Trading the Cable swings via averages

Reminder, another GBPUSD red news in just over 30 min.

Trading the Cable swings via averages

heads up on GBPUSD red news (CPI) in 45 min.

Trading the Cable swings via averages

Hasn't broken down on the 1 hr yet. Will be looking for a bullish div (or not) on the 5 min at the end of this bar

Trading the Cable swings via averages

Sorry, I was talking about the bottom that happened around 11:15 on your chart

Trading the Cable swings via averages

Blackeagle RSI 5 / RSI 14 or "Alan Divergence" on your chart. Not a price divergence

Trading the Cable swings via averages

Its all there in the screen shot you posted.

Trading the Cable swings via averages

wilyno There re 2 types of divergence we look for 1. Price/RSI 14 divergence, and 2. RSI 5/RSI 14 divergence

Trading the Cable swings via averages