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Flag trading the trend

  • #561
  • Mar 2, 2011 3:08pm Mar 2, 2011 3:08pm
Maybe just me but your lines re divergence don't seem to be very accurate
  • #562
  • Mar 2, 2011 3:16pm Mar 2, 2011 3:16pm
Quoting pdean123
The RED Arrow on the RSI (RSI Negative Reversal/Hidden Negative Divergence) a close of the down-bar that creates the peak and the signal or the break of the trend line. Personally I trade the RED Arrow. The flag is there, it just depends on how you view it.
Can you explain your terms negative reversal and hidden negative divergence?
  • #563
  • Mar 2, 2011 3:19pm Mar 2, 2011 3:19pm
Quoting 919gilead
Another divgce/123 combo that should have worked well during the Lndn session. I would have opted for the candle opening above the 10MA or otherwise wait for it to close above pt 2 with stop below pt 3 and profit target 1 (PT1) @ the 161.8FE & PT2 @ the 261.8FE if PA ever reaches but would have been trailing my stop anyway.

Great to finally find a home on this thread, and I trust I'm getting it and making sense!!

Will be back around Tokyo open

Take care all, and God bless

George
The divergence you drew on the chart seems backwards to me. I typically draw divergence on the bottom of the RSI if it is a down trend and on the top if it is an up trend. It still looks like there might be some divergence where you drew the 123 at the bottom.

Am I out to lunch on where to draw divergence? If so, I need to know.
  • #564
  • Mar 2, 2011 3:23pm Mar 2, 2011 3:23pm
I was keen to see how this worked on stock indicies and found what I thought was a perfect set up on the Dow (at least it worked out that way) there was a period of consolidation well before this set up which signified the trend was changing or at least a base was forming - night time for me but obviously day time in the States
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  • #565
  • Edited 4:15pm Mar 2, 2011 3:27pm | Edited 4:15pm
Quoting Rcwso
The divergence you drew on the chart seems backwards to me. I typically draw divergence on the bottom of the RSI if it is a down trend and on the top if it is an up trend. It still looks like there might be some divergence where you drew the 123 at the bottom.

Am I out to lunch on where to draw divergence? If so, I need to know.
Thank you Rcwso I think you are right and funny enough this is the way I have been drawing divergence without knowing I was wrong. Thx again for the correction.

George

NB
Can you folks also confirm whether my divergence drawing on the MACD is correct as this is what I use, not the RSI. I just resorted to the RSI as the standard indicator used here but I understand where to draw the RSI divergence now and thanks again Rcwso & Silversurfer.
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  • #566
  • Mar 2, 2011 4:26pm Mar 2, 2011 4:26pm
Quoting 919gilead
NB
Can you folks also confirm whether my divergence drawing on the MACD is correct as this is what I use, not the RSI. I just resorted to the RSI as the standard indicator used here but I understand where to draw the RSI divergence now and thanks again Rcwso & Silversurfer.
I have always drawn divergence on the top for up trends and on the bottom for down trends regardless of the indicator, RSI or MACD. That is the way I was taught and haven't heard anything different.
  • #567
  • Mar 2, 2011 4:41pm Mar 2, 2011 4:41pm
Quoting Rcwso
I have always drawn divergence on the top for up trends and on the bottom for down trends regardless of the indicator, RSI or MACD. That is the way I was taught and haven't heard anything different.
Thanks again, and correction taken.

Cheers buddy & God bless
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  • #568
  • Mar 2, 2011 4:44pm Mar 2, 2011 4:44pm
hey guys i see a lot of stuff since yesterday either i havent explained what i do well or havent given you charts showing exactly the setup. Some of you are getting hung up on HH HL some are getting hung up with others things this will be that last time i explain this. THIS IS A TREND TRADING STRATEGY!!! so with that said find a trend and wait for (i will not use the term pullback) a retracement. how do you find 1? well i gave you a retracement finder use it. when the bars dip in between the 50's area you have a retracement. Forget about trying to trade divergence /123's till you can find a trend consistently and trade it profitably. Just use divergence only right now to keep you out of a trade or to get out of a trade. i have seen a whole bunch of charts with fibs,pivots other indy's etc. why do you want other stuff to influence you. do you want to make money? then you first must be disiplined to follow rules and be patient till the setup happens, if you dont you wont and i repeat wont make money. how come nobody posted a chart of eurusd win now thats amazing so i will
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  • #569
  • Mar 2, 2011 5:02pm Mar 2, 2011 5:02pm
Quoting Divergence
hey guys i see a lot of stuff since yesterday either i havent explained what i do well or havent given you charts showing exactly the setup. Some of you are getting hung up on HH HL some are getting hung up with others things this will be that last time i explain this. THIS IS A TREND TRADING STRATEGY!!! so [size=1]with that said find a trend and wait for (i will not use the term pullback) a retracement. how do you find 1? well i gave you a retracement finder use it. when the bars dip in between the 50's area you have...
Get it, i think practice...pactice...practice is the only way to success in forex.
Today's You was Your previously Thought.
  • #570
  • Mar 2, 2011 5:12pm Mar 2, 2011 5:12pm
Quoting Divergence
hey guys i see a lot of stuff since yesterday either i havent explained what i do well or havent given you charts showing exactly the setup. Some of you are getting hung up on HH HL some are getting hung up with others things this will be that last time i explain this. THIS IS A TREND TRADING STRATEGY!!! so [size=1]with that said find a trend and wait for (i will not use the term pullback) a retracement. how do you find 1? well i gave you a retracement finder use it. when the bars dip in between the 50's area you have...
thanks
  • #571
  • Mar 2, 2011 5:14pm Mar 2, 2011 5:14pm
Quoting Divergence
hey guys i see a lot of stuff since yesterday ...... i have seen a whole bunch of charts with fibs,pivots other indy's etc. why do you want other stuff to influence you. do you want to make money? then you first must be disiplined to follow rules ....
Hi Divergence, if you are referring to the indicators on my charts, then I sincerely apologize as .... forget it no excuses. I joined this thread today as I am a fulltime trend trader looking for like minded traders, which I found here. I will endeavour to post what I understand and see, as your method is simple and straight forward and will surely compliment what I already have and know.

Thank you again, and all the best

George
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  • #572
  • Mar 2, 2011 5:20pm Mar 2, 2011 5:20pm
here 2 more charts 1 is audusd other is gbpusd
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  • #573
  • Mar 2, 2011 5:27pm Mar 2, 2011 5:27pm
hey no problem 919 its just this i have shown a simple and very effective way to profit consistently i even gave them the model for money management and yet noones posting charts of winning trades i dont get it so these last 2 charts will be my last until i see someone post charts of winning trades or theres really no point in me continuing here i must be a bad teacher
  • #574
  • Mar 2, 2011 5:33pm Mar 2, 2011 5:33pm
Hi D
The Dow chart was a winning trade and I posted a GBPUSD winning trade yesterday. Pretty happy with your way of trading the trend and I guess I'm like everyone else in that when I get a couple of winners in a row I just log off for the day - I have been guilty of over trading in the past and been subsequently burnt.
  • #575
  • Mar 2, 2011 5:35pm Mar 2, 2011 5:35pm
Quoting Divergence
here 2 more charts 1 is audusd other is gbpusd
Div,

What prevents you from getting in on the next pullback up the trend on those two charts? I see a tiny bit of divergence on the RSI. Does that little bit if divergence stop you from taking the next pullback? I see that they would not have turned out very well. Also speaking from experience trying to see if I could get some pips out of those. So what makes you stop at that point?
  • #576
  • Mar 2, 2011 6:10pm Mar 2, 2011 6:10pm
Hi Divergence,

I'm using your trading system for about two weeks.
12 trades done = 12 winners. I like the essence of this TS, trend and price momentum.
I will not post any charts, cos I think everything what traders here need was already shown (several times). I am still tuning volume for positions, but thats private matter for every trader.
You are good teacher And this is for rest of you: Read this entire thread before ask dump question. (no offense)

My big>> Thank you Divergence.
  • #577
  • Mar 2, 2011 6:51pm Mar 2, 2011 6:51pm
Regular divergence = trend change coming soon, price is making higher highs but the indicator (MACD, RSI, Stoch) isn't. So price is "diverging" from the indicator.

Hidden divergence (aka reverse divergence) = trend continuation signal. Happens most of the time at the end of a pullback and signifies a trend resumption.

Quoting Rcwso
Can you explain your terms negative reversal and hidden negative divergence?
  • #578
  • Mar 2, 2011 7:03pm Mar 2, 2011 7:03pm
Quoting jdcompute
Regular divergence = trend change coming soon, price is making higher highs but the indicator (MACD, RSI, Stoch) isn't. So price is "diverging" from the indicator.

Hidden divergence (aka reverse divergence) = trend continuation signal. Happens most of the time at the end of a pullback and signifies a trend resumption.
Got it. Thanks.
  • #579
  • Edited 7:09pm Mar 2, 2011 7:07pm | Edited 7:09pm
Quoting spoty
Hi Divergence,

I'm using your trading system for about two weeks.
12 trades done = 12 winners. I like the essence of this TS, trend and price momentum.
I will not post any charts, cos I think everything what traders here need was already shown (several times). I am still tuning volume for positions, but thats private matter for every trader.
You are good teacher And this is for rest of you: Read this entire thread before ask dump question. (no offense)

My big>> Thank you Divergence.
I am not so sure anyone is asking dumb questions. But you are saying that you are not willing to share your 12 of 12 wins to show what you traded, what entries you had etc? Divergence is ASKING people to post charts to show and teach others. Maybe someone could learn something from your 100% success. Including me. I don't think anyone cares about you volume etc. That is 100% personal and how much you are willing to risk. But lots of people would like to see a 100% success rate for their first 12 trades.

I certainly have not had any winners that I would be willing to post. I keep messing up signals and not seeing the big picture.
  • #580
  • Mar 2, 2011 7:19pm Mar 2, 2011 7:19pm
Quoting pdean123
I caught that. Chart below. Reversal could have been entered at time of confirmation or after it broke the trendline. What do you think? Yellow arrows are positive divergences.

I didn't like the time it took to retrace - so i took a couple of different trades - including a beautiful pop on the euro for 25 pips.

If i traded the reversal signal i would have been shaken out on the subsequent price action - but waiting for the TL break and CCI to close below -50 on trigger bar would have yielded a 1:1 payout. Lower R/R than most go for but higher W/L rate on set-up.
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