Flag trading the trend

when trading the 123 the stop is at the 3 point usually

Kiwi trade but this is not the best time to trade - just practicing my pullback entry(s). I mostly trade the 1st few hours of Lndn and US open, and sometimes the Asian session after reading this thread.

Will be back within the hour, as Kiwi continues to make new ST (short term) highs

George

Some divergence showing on this pair, time will tell if it gets a kick up. If it does and we get a nice pullback it will be worth watching.

Short setup on E/U.

i got in to that one too

Fell short of target by 2-3 pips and a quick snap back. Stopped out at BE.

same here, just +1

Markets seem to chop around after around 10 GMT most days.

this could be because of the news coming out

Sujith do you understand divergence + 123 setup? It seems like div has just formed on e/u...

Yes, medium impact though.

Yes, it looks like, not fully formed though

But I won't take it at this time.

here's how i'd see it

Divergence on Cable also. No 1-2-3 break upwards yet though.

GBPCAD Trade

mr. Div can you please explain the difference between these 2 divergences and why you took second one? just want to understand div+123 setup
thank you

Hi Guys

I'd like to say this is another good way of trading as the principles are based on PA, its amazing over the past few weeks I've come accross a few threads all of which are very good this being one of them.

Vince in your 1st eg if your 1st leg was at the end of your trendline than you can mark that as leg1 you can clearly see leg2 around 3-4 bars above this however leg3 is lower than leg1 so therfore your 123 setup is invalid, Your Divergence is spotted correctly but its better not to just trade of that. Second point as MR DIV says that the retracement finder, CCI whatever you want to call it needs to be above 50 when price closed above the MA CCI was below 50 also look at that candle its a indecision doji candle so maybe wise not to go long there.

In eg 2 you give again you have to firstly qualify your 123 setup because if you look carefully you have one failed 123 setup, than you have another one, this time when price closes above the MA you have all conditions met but the divergence is not good in fact a weak one just about may consider it but you have a valid 123 setup plus CCI above 50 when that candle closes abobe MA, here you have much more probability on your side so the wiser choice of the two setups.

that makes sense, thank you kdx

Another good short 2 already from london openning...