Trading cable the old fashioned way.....

[cable warrior]

Weekly view.

 

[cable warrior]

Double bottoms, or meaningless wiggles??

 

[cable warrior]

On the 4hour.
Look at this important support area.
Stay LONG unless this area is breached... if so SHORT

 

[cable warrior]

Lets get a few things clear here.
Successful cable trading is VERY VERY hard. Its one of the most volatile markets on earth. It is notoriously UMPREDICTABLE.

Tech sometimes works like a dream, other times it seems like complete chaos.

Is it possible to use a bit of old school tech on this market...... yes its easy in hind-site.
Lets give it a go and see what happens.

 

[cable warrior]

BASIC FACTS:

Trend following techniques get cut to ribbons when the market ranges.

Range trading methods get annihilated when the market trends.

The only thing we can do is choose:

Range trade... and limit losses when the market trends. or:
Trend follow and limit losses when the market ranges.


This market just loves to 'breakout'. This makes using moving averages or other lagging indicators very difficult to use on any time scale.. I'm sure you have all experienced this.

Another problem: If we use breakout methods then we keep ending up at the top and the bottom of the range. Cut to ribbons. Breakout methods work in trends, not in ranges.

Whats a trader to do?

 

[cable warrior]

Triangles can be powerful formations in FX. What do you think to this one?

I'm going long on an up side break.
Neutral on a downside failure.

Lets see how it plays out..

 

[Mornington Crescent]

I think you are talking to yourself

put up a few pics instead of docs and I'll take a look

 

[cable warrior]

How do you post charts directly?

 

[Mornington Crescent]

click on 'post reply'
then enter your message and click on 'manage attachments'

it will allow you to search your files/directory and select what you want

click on 'upload'

then click on 'submit'

 

[JumpOff]

uploading files

In my browser, after I "manage attachments" and choose the file on my machine, I have to scroll well off the right hand side to *see* the upload button.

Yes I have a minimal size browser window going. Gotta have room for charts - don't cha know.


JO

 

[cable warrior]

OK we got that upside break.
Long CABLE @17350 stop at17230

 

[YachtFund]

cable warrior

I dont think trading cable is VERY VERY HARD its just difficult and requires some hard work.

YachtFund

 

[tommog]

Cable Warrior,

Nice charts, but why do you chose to trade cable when its notorious for breakouts and volatility? I think other pairs such as eurodollar and the yen respect S/R levels more
Tom

 

[abobtrader]

Cable Warrior,

Nice charts, but why do you chose to trade cable when its notorious for breakouts and volatility? I think other pairs such as eurodollar and the yen respect S/R levels more
Tom

Hi tommog, I'm not answering your question directly because I'm guessing your are techy trader?...but from a fundamental perspective, trading cable can be an attractive surrogate for eur/usd because of the high correlation and different carry properties. Also, from an SB trading perspective, trading a USD view through cable can give you a greater pip move than EUR/USD (I know, its a weak point).

I've just written a piece on EUR/USD and cable on my blog...posting the chart here as it may be of interest:

i hope this works

: )

 

[Kaffee]

This market just loves to 'breakout'. This makes using moving averages or other lagging indicators very difficult to use on any time scale.. I'm sure you have all experienced this.

But at the point of the breakout it's trending surely ?? So MA's capture this.

 

[cable warrior]

Kaffee.
This market moves can move very quickly. often by the time moving averages flash a buy signel, the move is all but over.

 

[cable warrior]

To illustrate the above point. Look at the aweful signals given by the 20 sma and 40 sma on this chart!!!

 

[PipCrawler]

I don't know if anybody has posted using the bunny cross method. With a little discretion I think it works well with cable...

 

[cable warrior]

Whats the Bunny cross?

 

[cable warrior]

The long trade is now 200 pipis in profit.
Yes it was a market turn.
I'm holding this long.