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Trading the Cable swings via averages

Quoting Nala66
{quote} 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.
I guess you mean something like this Alan?
Candle close when RSI is below the TL means Sell trade is ON
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Quoting 40PipsAlan
{quote} I guess you mean something like this Alan? Candle close when RSI is below the TL means Sell trade is ON {image}
And drawing Trend channels on the M5 RSI. Notice the RSI divergence (price going down and RSI channel going up) in the middle suggesting an up move which doesn't happen, instead we get some more down move after a retest of the daily open line. How to make profits from this I am not sure unless we close the trade upon RSI divergence.
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Quoting 40PipsAlan
{quote} I guess you mean something like this Alan? Candle close when RSI is below the TL means Sell trade is ON {image}
I do it a tad differently and mainly use the 15 min chart.

Here is how I would do it...
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I forgot to add that I look for the swing lows to swing highs. I don't use the intermediate levels like you have with your chart.
Quoting 40PipsAlan
{quote} And drawing Trend channels on the M5 RSI. Notice the RSI divergence (price going down and RSI channel going up) in the middle suggesting an up move which doesn't happen, instead we get some more down move after a retest of the daily open line. How to make profits from this I am not sure unless we close the trade upon RSI divergence. {image}
Well, this is getting a little of subject here but never mind, it is something to talk about.

Lokk to the middle of the chart and we see the RSI channel heading up whereas the price is below the EMA heading down. Obviously, we have a divergence situation where the pull backs to the EMA should be traded as shorts.

The RSI is a difficult beast to use as an indicator unless you fully understand its meaning and trust me many have no idea but keep regurgitating the same old rubbish. One popular myth is to trade the RSI when it gets back below the 80 level or the 30 level but this is meaningless as the RSI will always gravitate back the mid-level even if both the bulls and bears are buying and selling equally but often, we may barely get our money back. It is the breaking of this mid-level or the bouncing off it that is important which is why we use the 26 EMA to note this in the price chart window.

If we are taking a trade towards the average, we are gambling that it will break and find bullish or bearish support for this price action. So, we stage or stagger our entries to keep our risks low. then we are looking for the potential target being the test of the opposite side swing average.

It is for these reasons I compare the RSI to the RSI and not the price. This is done on the fast/slow RSI showing us an RSI divergence.
The hidden divergence is shown on the historical RSI using a pending order to catch the pull backs.
In both cases we can add to our trade as we gain more confirmation and win the maximum of the day with the smallest of risks.

When we put multiple EMA.s of the one chart representing higher time frames we can readily see where the price is trying to get to. If we wanted to, we could put multiple RSI's say on the 5 min chart for the 5 min, 6, 7, 8, 9 and 10 min and we would form a ribbon band and see it twist as price turns. These would all still be 26EMA's for each respective time.

Here is the ribbon for the 5 min to 10 min. Note as the ribbon narrows it is an indication of a change in direction whereas as it widens it is showing some strength...

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Many ways to set up trading systems..

Happy and prosperous New Year everyone.
Well. Here's a week from hell!!
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Greetings, Alan!

I created an RSI 14/RSI 5 indicator and am posting it to the group.
Maybe someone will find it useful.
Attached File(s)
File Type: mq4 RSI_on_RSI.mq4   7 KB | 80 downloads
Same indicator as above RSI on RSI for Tradingview
https://tradingview.com/script/X7bRG...i-5-on-rsi-14/
  • #10,548
  • Quote
  • Edited 8:16am Feb 9, 2026 5:27am | Edited 8:16am
Another indicator similar to Mano Rounder for TradingView.
It draws zones.
All parameters and colors are customizable.
It's called Visual Trading Zones.

https://tradingview.com/script/QhuJd...trading-zones/

И еще индикатор уровней HH/LL 26 EMA для TradingView
It's called EMA 26 HH/LL Levels v6
https://www.tradingview.com/script/w...-ll-levels-v6/

and the RSI Divergence indicator for TradingView
https://tradingview.com/script/yf10v...divergence-v6/
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I see there are several people that enjoy coding so I will give you an idea that would prove useful.

Below I have the 15 min chart as an example and have highlighted some 4 hidden divs, two long and two short.

The idea would be to have an alert pop up when the HD happens. The green box is a 5 pip pull back from the HD where I would enter. The target would depend on the structure but would be at least twice the risk which is always just beyond the HD.
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If I can take the first instance in the red box as an example I will explain it.

Price is testing the pivot, but the historical RSI is not so we have a bearish hidden Div. The alert pops up.

5 pips below the pivot level we place our short order. It is important to do this because price may move higher to form a regular bear div. We place our TP at double the risk.

In the 4 examples we see they all paid the correct double of the risk.

Something for you guys to think about and would help those unable to spot hidden divs.
Quoting Nala66
I see there are several people that enjoy coding so I will give you an idea that would prove useful. Below I have the 15 min chart as an example and have highlighted some 4 hidden divs, two long and two short. The idea would be to have an alert pop up when the HD happens. The green box is a 5 pip pull back from the HD where I would enter. The target would depend on the structure but would be at least twice the risk which is always just beyond the HD. {image} If I can take the first instance in the red box as an example I will explain it. Price is...
Problem is Alan. Writing code to detect peaks and troughs. 2 Bull candles followed by a Bear isn't always the peak we need. We can throw in lots of other standard code like stochastic/CCI/RSI but invariably we will always miss some signals.
Quoting 40PipsAlan
{quote} Problem is Alan. Writing code to detect peaks and troughs. 2 Bull candles followed by a Bear isn't always the peak we need. We can throw in lots of other standard code like stochastic/CCI/RSI but invariably we will always miss some signals.
I am not a coder, but I think I understand what you mean.

I use my Quartile tool with each unit being 5 pips. I can quickly slide this in place it displays the price I need to set for entry, stop and initial target. Using the tool also draws the line off the pivot I am watching. I can then also drag the pending order to the correct level also in quick time.

If the price climbs higher/ lower than the pivot I follow it with the Quartile tool and move the pending order accordingly.

The spread also has to be accounted for which is a hassle.

Edit... A thought has just made its way between my ears, but it is 1am now. I will think on it and post tomorrow.
Quoting Nala66
I see there are several people that enjoy coding so I will give you an idea that would prove useful. Below I have the 15 min chart as an example and have highlighted some 4 hidden divs, two long and two short. The idea would be to have an alert pop up when the HD happens. The green box is a 5 pip pull back from the HD where I would enter. The target would depend on the structure but would be at least twice the risk which is always just beyond the HD. {image} If I can take the first instance in the red box as an example I will explain it. Price is...
A work in progress Bossman.
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  • #10,553
  • Quote
  • Edited 11:44am Feb 12, 2026 10:47am | Edited 11:44am
Whatever was between my ears was nonsense because I was thinking of manually putting in the HD line to be tested but this defeats the purpose of making an alert.

Anyway, I didn't see any HD's yesterday but plenty of other opportunities. I was on the initial longs and didn't trade the shorts at all.

Today we have already had an HD as you can see from my artistic scratches on the 15 min chart below.
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Some profit is already locked in.

Edit.. This trade was stopped out for +10 pips
Quoting Nala66
Whatever was between my ears was nonsense because I was thinking of manually putting in the HD line to be tested but this defeats the purpose of making an alert. Anyway, I didn't see any HD's yesterday but plenty of other opportunities. I was on the initial longs and didn't trade the shorts at all. Today we have already had an HD as you can see from my artistic scratches on the 15 min chart below. {image} Some profit is already locked in. Edit.. This trade was stopped out for +10 pips
Failed divergence signals here.
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Quoting 40PipsAlan
{quote} Failed divergence signals here. {image}
I guess the key here is a divergence signal at a SR level.
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Quoting 40PipsAlan
{quote} Failed divergence signals here. {image}
Remember the rules...

1) When trading above the average look for long signals for the better moves.

2) When trading above the average any short is a scalp risk until price breaks the EMA to find support.

3) If you do short then get the stop to BE ASAP.
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Quoting 40PipsAlan
{quote} I guess the key here is a divergence signal at a SR level. {image}
Yes, this is a good indication the market is overexuberant (nice word that I must look up what it means).

However still test it for the entry with the stop as tight as possible.
Here is a good example of the Div at the ZOO being the average swing high on the 1-hour chart.

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Quoting Nala66
{quote} Remember the rules... 1) When trading above the average look for long signals for the better moves. 2) When trading above the average any short is a scalp risk until price breaks the EMA to find support. 3) If you do short then get the stop to BE ASAP. {image}
I do have one question about this part, assume that the price in uptrend currently and now it occur a divergence, it pullback untill meet the EMA, now we should decide to enter a buy order or enter a short order (in case it make support across the EMA) but we should wait until which signal to decide we gonna enter buy again?
Quoting Fiona96
{quote} I do have one question about this part, assume that the price in uptrend currently and now it occur a divergence, it pullback untill meet the EMA, now we should decide to enter a buy order or enter a short order (in case it make support across the EMA) but we should wait until which signal to decide we gonna enter buy again?
Well really it is not a matter of decision but of calculated risk.

A say bear div should return the price to the EMA but most likely will be in a bull div when it gets there and a price bounce should send it back above the original div so we have a known target distance, roughly. Let's for example sakes call this 20 pips. Should the price cross the EMA it would be far less than 20 pips so the reward to risk is in your favor.

However, this only applies to one chart at a time we need to consider what price is doing on both the higher and the lower time frames.

I find the use of trend lines on the 15 min RSI chart help me a lot. As we can see below, yesterday the market moved heaps but so far today it has moved little.

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