Flag trading the trend | Page 48 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Are you a trend trader or a counter-trend trader? 29 replies

Divergence Flag / Trend Continuation setup 0 replies

1 Min THV Flag Trading 933 replies

Is Grid Trading (combined trend following and counter trend) Profitable? 3 replies

3 CCIs 'Flag' Trading 55 replies

Attachments: Flag trading the trend
Exit Attachments

Flag trading the trend

  • #941
  • Edited 7:56am Mar 10, 2011 7:38am | Edited 7:56am
mr. Div, i'd really appreciate your comment on these two

http://www.forexfactory.com/attachme...4&d=1299670620

http://xmages.net/storage/10/1/0/9/d...d/6ff8abc0.gif
  • #942
  • Mar 10, 2011 9:17am Mar 10, 2011 9:17am
Quoting occamsrazors
Hi Rcwso

You are right. There was no divergence on the RSI (nearly but not quite) but there was divergence on another indicator I use and I mentioned the 123 because I saw it. It wasn't necessary for the trade, but it did give me extra comfort that the cross of the the 10 and flag break was real. I like seeing 123 patterns on TL breaks. And because it was with the overall downtrend that I saw I thought the odds were very much in my favour (other than time of day).

My understanding is that Mr Div takes flag breaks across the 10MA with retracment...
Makes sense. Thanks for the explanation.
  • #943
  • Mar 10, 2011 9:20am Mar 10, 2011 9:20am
What does anyone think of the divergence the EU right now? Looking for a 123 or is the trend too strong right now and think it will continue?

The AUDUSD had some divergence that didn't seem to pan out.

Any thoughts?
  • #944
  • Mar 10, 2011 9:27am Mar 10, 2011 9:27am
Quoting vince
mr. Div, i'd really appreciate your comment on these two

http://www.forexfactory.com/attachme...4&d=1299670620

http://xmages.net/storage/10/1/0/9/d...d/6ff8abc0.gif
1st chart: Not sure what you are looking at. Apologies.

2nd chart: Your label for the 123 seems wrong. The number "1" should be the peak of where the divergence occurred. So the last HH or LL. That is where the numbering should start. Then 2 would be the first down in this case and 3 would be the peak that did not get as high as the last HH. Possibly a LH.
  • #945
  • Mar 10, 2011 9:30am Mar 10, 2011 9:30am
Looking at possible ST long trade
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd potential trade 310.jpg Size: 129 KB
Low Risk Low Stress High Reward High Probability Trades
  • #946
  • Mar 10, 2011 9:35am Mar 10, 2011 9:35am
Quoting Rcwso
What does anyone think of the divergence the EU right now? Looking for a 123 or is the trend too strong right now and think it will continue?

The AUDUSD had some divergence that didn't seem to pan out.

Any thoughts?
Same thot here, and just posted my chart before reading your comment. And I agree with u on the Aussie too as the LL has been taken out. I was going to short the Aussie on pullback but did not because of the divergence and see what it is still doing, but the potential divergence still remains and will be lurking and watching.
Low Risk Low Stress High Reward High Probability Trades
  • #947
  • Mar 10, 2011 9:37am Mar 10, 2011 9:37am
Quoting Rcwso
1st chart: Not sure what you are looking at. Apologies.

2nd chart: Your label for the 123 seems wrong. The number "1" should be the peak of where the divergence occurred. So the last HH or LL. That is where the numbering should start. Then 2 would be the first down in this case and 3 would be the peak that did not get as high as the last HH. Possibly a LH.
1st chart: isn't there a pullback which got broken?
2nd chart: other than labeling would that be div+123 setup?
i'm still learning, thanx for your help
  • #948
  • Mar 10, 2011 9:38am Mar 10, 2011 9:38am
Quoting 919gilead
Looking at possible ST long trade
That is what I have been looking at also. Looks like it wants to continue down right now. Maybe that will bring more divergence in and set up the actual 123.
  • #949
  • Edited 9:49am Mar 10, 2011 9:40am | Edited 9:49am
Quoting Rcwso
That is what I have been looking at also. Looks like it wants to continue down right now. Maybe that will bring more divergence in and set up the actual 123.
Maybe and keeping my powder dry

This is why it is good to always follow the rules as the Euro only came 4 pips within possible entry point. Previous low tested and remains intact for now, and will keep watching. It has now being penetrated & will see whether PA closes below it.
Low Risk Low Stress High Reward High Probability Trades
  • #950
  • Mar 10, 2011 9:59am Mar 10, 2011 9:59am
Quoting vince
1st chart: isn't there a pullback which got broken?
2nd chart: other than labeling would that be div+123 setup?
i'm still learning, thanx for your help
1st chart: This is the point in the market where, yes, we were in a down trend. If you read back at some of Divergence's posts during that time he basically was saying that the charts looked suspect and not very good. Very choppy/ranging even though the down trend had started. You also have a fairly large drop in a very short period of time. One thing I have learned is that when the charts look like crap, wait. Regardless of your method. Also, with a drop like that (or gain) you might want to wait to let things settle out. Any other thoughts?

2nd chart: Yes, there is divergence. Realize, the overall trend is down. So that might be some hidden divergence to continue the trend. But...I am not 100% on the rules for the 123 set-ups. Just looking at the chart it doesn't look like that one would be valid. 1st, divergence talks 123 for and end of an overall trend. 2nd, the 123 pattern never breaks the 10 sma line. Look at the charts previously posted by Divegence and see what you think. I cannot find a rule that says it has to break the 10 sma but it would seem that there needs to be some testing of the previous HH. Again, I am not sure the point of the 123 set-up is to find divergence to continue the trend. But to look for the reversal of a trend. Remember, even with a valid 123 set-up, the trend is not officially reversed until it breaks the appropriate HH or LL. Up until that point it is a counter trend trade.

Any other insight?
  • #951
  • Mar 10, 2011 10:02am Mar 10, 2011 10:02am
Quoting 919gilead
Maybe and keeping my powder dry

This is why it is good to always follow the rules as the Euro only came 4 pips within possible entry point. Previous low tested and remains intact for now, and will keep watching. It has now being penetrated & will see whether PA closes below it.
Me too. The thing I am watching is that there is a pretty strong point of resistance that was recently broken at the 1.38 area. I am looking for a good 123 and possibly a break above the 1.38 area again.

Also, there is probably only another 1 to 1.5 hours left of good trading before the London Close and the volumes drop off for a while.

Thoughts?
  • #952
  • Mar 10, 2011 10:11am Mar 10, 2011 10:11am
Todays US session trade... Easy when you know how
Thanks Div.
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 21 KB
  • #953
  • Mar 10, 2011 10:38am Mar 10, 2011 10:38am
This method has really changed my trend trading results - thanks Divergence. One rule I have transferred from my previous approach uses an indicator to check trend. I have a rule not to trade against the trend on the higher TFs. If it works for anyone else this is the indicator
Attached File(s)
File Type: mq4 Multimeter.mq4   14 KB | 610 downloads
  • #954
  • Mar 10, 2011 11:16am Mar 10, 2011 11:16am
Quoting Rcwso
Me too. The thing I am watching is that there is a pretty strong point of resistance that was recently broken at the 1.38 area. I am looking for a good 123 and possibly a break above the 1.38 area again.

Also, there is probably only another 1 to 1.5 hours left of good trading before the London Close and the volumes drop off for a while.

Thoughts?
Sorry Rcwso I was away for a quick meeting for about an hour. Yes I agree with you and Lndn is close now but will still watch for another hour before calling it a day.
Low Risk Low Stress High Reward High Probability Trades
  • #955
  • Mar 10, 2011 11:48am Mar 10, 2011 11:48am
Quoting 919gilead
Sorry Rcwso I was away for a quick meeting for about an hour. Yes I agree with you and Lndn is close now but will still watch for another hour before calling it a day.
I stepped away for a quick run. Can't beat 75 Degree and sunny.

Looks like a possible 123 forming but with the close of London and things slowing down, I may be on the side for a bit.
  • #956
  • Mar 10, 2011 11:56am Mar 10, 2011 11:56am
Quoting Rcwso
I stepped away for a quick run. Can't beat 75 Degree and sunny.

Looks like a possible 123 forming but with the close of London and things slowing down, I may be on the side for a bit.
Still cold here in Vancouver Canada.

I'm still watching as this market has a way of moving like a snail
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd potential trade update 310.jpg Size: 132 KB
Low Risk Low Stress High Reward High Probability Trades
  • #957
  • Mar 10, 2011 12:28pm Mar 10, 2011 12:28pm
Quoting 919gilead
Still cold here in Vancouver Canada.

I'm still watching as this market has a way of moving like a snail
Yes, it certainly moves slowly at times.

I think I am walking away for a while today. Be back later.
  • #958
  • Mar 10, 2011 12:35pm Mar 10, 2011 12:35pm
Quoting Rcwso
Yes, it certainly moves slowly at times.

I think I am walking away for a while today. Be back later.
Cu later
Low Risk Low Stress High Reward High Probability Trades
  • #959
  • Mar 10, 2011 5:32pm Mar 10, 2011 5:32pm
hears a heads up before it happens eurusd trend is down am waiting for a trigger bar
  • #960
  • Mar 10, 2011 6:02pm Mar 10, 2011 6:02pm
Hi Mr Div

Can I please ask a question to clarify something on whether a candle is a trigger candle or not. Attached is a chart. It shows a candle that breaks flag TL, closes below 10 but doesn't get an RF below -50. So its not a trigger candle. Next candle below MA and TL and has an RF below -50. Can this be considered a trigger candle (its not ideal as its bullish) and an entry taken when its low is broken by 1 pip on the next candle. Or do we need to wait for a whole new setup now ie a bearish candle with RF below -50?

Thanks Occam
Attached Image (click to enlarge)
Click to Enlarge Name: Mr_Div_candle_question.png Size: 48 KB
2 traders viewing now