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Flag trading the trend

  • #341
  • Feb 27, 2011 8:00am Feb 27, 2011 8:00am
Quoting vince
GOT IT! Thank's
You are welcome
  • #342
  • Feb 27, 2011 8:11am Feb 27, 2011 8:11am
One question please: S/L and T/P is 1:1. But why Div mentioned "26pip"? where does it come from?
  • #343
  • Feb 27, 2011 8:21am Feb 27, 2011 8:21am
Quoting Sujith
Hi Vince,

The HL prior to the Last HH needs to be taken out. Hope this clears your doubt.
Hi Sujith

Could you help me with this question. There are 3 HH and 3HL marked on vince’s chart – post 338. My confusion is between the second and third HL.

There are many tiny swings HL (not marked) that lead up to the third HH9 (marked) . Why are these not used, and only the second HL is recognized.

Thanks for the help.
  • #344
  • Feb 27, 2011 8:55am Feb 27, 2011 8:55am
Quoting laimonk
Hi Sujith

[size=3][font=Times New Roman]Could you help me with this question. There are 3 HH and 3HL marked on vince’s chart – post 338. My confusion is between the second and third...
Hi Laimonk,

After the second HL we are looking for a new HH now, so we don't mark the HLs that come along. Trend is defined as HH-HL-HH-HL in that order, so after a HL now we are looking for a HH not another HL. The HLs that are not marked are technically HLs yes, but we r looking for the next HH in order to define the trend or in case of a trend change a break of the HL prior to the last HH. It is really difficult to explain this in words. I also was confused at first. Hope this explanation is of some help. It is important to remember that we are marking the HH HL etc to define the trend so we are marking only relevant levels.
  • #345
  • Edited 9:22am Feb 27, 2011 9:10am | Edited 9:22am
Hi, div,
I have backtested only the divergence, 12 win,8 loss,not good enough. would you please explain the following lossing trades:
my rule is: looking for a divergence, then waiting for the bar close above/below the ma and the cci>50 / cci<-50, this is the trigger bar, then enter in the next two bars 1pip above/below the high / low of the trigger bar.
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  • #346
  • Edited 12:56pm Feb 27, 2011 11:55am | Edited 12:56pm
when I backtested it. I can find the losing trades everywhere.
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  • #347
  • Feb 27, 2011 12:52pm Feb 27, 2011 12:52pm
would you please show us the 17 trades you took last week on the chart?
I still can't figure out how to trade using zigzag. the zigzig repaint the last (two) points heavily.
and the "TP" means "trend pullback",right?

Quoting porfirio
thanks div ... great job ... very technical, very simple, very logical

for those who need help to determine the sequence of high / low in the trend, maybe this indicator (multizigzag) can help .... I did this week .... 17 operations all winners, playing the TP.

change 60-240-1440 by 5-15-60

the indicator here:
http://codebase.mql4.com/4791
  • #348
  • Feb 27, 2011 12:59pm Feb 27, 2011 12:59pm
Hi Div , Sujith,

Could one of you check my Entry and exit points and let me know if i'm on the right track. I'm a newbie and I kinda feel that I'm doing it right, but you never know my right could be your left

Any help appreciated

http://www.forexfactory.com/attachme...1&d=1298833111


Regards

Jackson Philips
India, Bangalore
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  • #349
  • Feb 27, 2011 1:42pm Feb 27, 2011 1:42pm
please pay no attention to the man behing the curtain of post 346 obviouly he is not following the rules and is paranoid that if everyone follows this the market will change and it wont work again with that said concerning the divergence trades i have already explained that when divergence forms and it gets triggered 90% of the time it unfolds in a 5 wave pattern. So how do i know when it triggers? well a 123 forms first and if i get a candle after it forms thats high or if short its low is within 2 pips of the 2 point thats when i take it here again are 2 charts
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  • #350
  • Feb 27, 2011 2:07pm Feb 27, 2011 2:07pm
Hello Divergence,

Your thread should be labelled as a must read for all aspiring traders. It is the essence of what trading is about. Plainly and simply you have nailed it!

I've noticed that you have never mentioned using hidden divergence in any of your posts. So my question is do you consider hidden divergence, when looking for continuation of a trend?

Thank you for sharing your methodology.....T-Wolf
  • #351
  • Feb 27, 2011 2:28pm Feb 27, 2011 2:28pm
hey thunder i sometimes use it in my own trading but overall this is trend first and if divergence happens in the pullback of a wave and 123 forms which is where they form at end of trends i will take counter trend only to find setup to get back into trend to me the best divergence is when it happens at the end of the pullback of a trend so i can get back into trend thats a variation of hidden divergence though its still considered negative divergence labels go figure
  • #352
  • Feb 27, 2011 2:41pm Feb 27, 2011 2:41pm
hey joel just pm'd you
  • #353
  • Feb 27, 2011 2:41pm Feb 27, 2011 2:41pm
Hey Divergence, is there an indi or an EA you use to help with this analysis?

Thanks

Quoting Divergence
There is a host of various kinds of methods but the simplest way to make money is trading flags in a trend. YOU can do it on any time frame and any pair. In other words trade the pullback in a trend do this and you will find your self not looking on the forex factory threads except to see when news is happening.
  • #354
  • Feb 27, 2011 2:51pm Feb 27, 2011 2:51pm
Roger Dodger......
Quoting Divergence
hey joel just pm'd you
  • #355
  • Feb 27, 2011 3:00pm Feb 27, 2011 3:00pm
Trading for the week starts in a few more hours. Good luck to all you guys.
  • #356
  • Feb 27, 2011 3:04pm Feb 27, 2011 3:04pm
tdot no there is no ea i am the ea lol the analysis in on the chart HH HL LL LH
  • #357
  • Feb 27, 2011 3:08pm Feb 27, 2011 3:08pm
Thank You, same to you......
Quoting jdcompute
Trading for the week starts in a few more hours. Good luck to all you guys.
  • #358
  • Feb 27, 2011 3:12pm Feb 27, 2011 3:12pm
well based on fridays closing it appears we are in a down trend going into tonite untill that 3765 area is taken out a short a we will go
  • #359
  • Feb 27, 2011 3:23pm Feb 27, 2011 3:23pm
Thank You Mr. D.
Quoting Divergence
well based on fridays closing it appears we are in a down trend going into tonite untill that 3765 area is taken out a short a we will go
  • #360
  • Feb 27, 2011 3:26pm Feb 27, 2011 3:26pm
Quoting Divergence
well based on fridays closing it appears we are in a down trend going into tonite untill that 3765 area is taken out a short a we will go
confused once again, why not 3783 area?
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