Flag trading the trend | Page 66 | 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

  • #1,301
  • Mar 16, 2011 6:34am Mar 16, 2011 6:34am
did anyone take the flag short on GU just now? I entered 1 pip below the trigger candle, currently 17 pips drawdown...

was this a good trade or am I way off the mark? I can't see any divergence.
  • #1,302
  • Mar 16, 2011 6:41am Mar 16, 2011 6:41am
Quoting Ultimatus
did anyone take the flag short on GU just now? I entered 1 pip below the trigger candle, currently 17 pips drawdown...

was this a good trade or am I way off the mark? I can't see any divergence.
i think you should take GU earlier....now it is in a ranging mode...it seems to be at the end of EW...maybe even reversing
imo you need to wait for a trend to be establish...a slope of MA (which now is flat)
  • #1,303
  • Mar 16, 2011 6:50am Mar 16, 2011 6:50am
chaps I took the GU long.

Did try a short on EU, but was late and realised that i was perhaps forcing it.. so jumped out at -13.

Didnt take any gu short..
Enter Signature
  • #1,304
  • Mar 16, 2011 6:51am Mar 16, 2011 6:51am
Quoting bradu
i think you should take GU earlier....now it is in a ranging mode...it seems to be at the end of EW...maybe even reversing
imo you need to wait for a trend to be establish...a slope of MA (which now is flat)
Thanks, I think you are right, the MA was too flat. Still in the trade, hopefully I will scrape out of this one alive.
  • #1,305
  • Mar 16, 2011 7:01am Mar 16, 2011 7:01am
Quoting Ultimatus
Thanks, I think you are right, the MA was too flat. Still in the trade, hopefully I will scrape out of this one alive.
I have seen a lot of instances where the price starts drifting after 10 GMT. So I don't trade after that time. There are times it will work, but certainly not a high probability time zone I think.
  • #1,306
  • Mar 16, 2011 7:17am Mar 16, 2011 7:17am
Div, any chance of getting ur take on the mkt before each session for a few days to see if we are picking the trend correctly? today i would think that once price fell below about 1.3947, we would be in a down trend
  • #1,307
  • Mar 16, 2011 7:25am Mar 16, 2011 7:25am
first rule find the trend if there is no trend refer to first rule
  • #1,308
  • Mar 16, 2011 7:33am Mar 16, 2011 7:33am
wait
  • #1,309
  • Mar 16, 2011 7:38am Mar 16, 2011 7:38am
Quoting antinomian
I did not really see a significant down move (e.g. 5 wave move). I thought that divergence usually only happens at the end of a move.
I can't speak for him but my understanding is that Div will only trade divergences that occur at the end of 5 waves followed by a 1-2-3.

Divergences happen all over a chart though - not necessarily at the end of 5 waves. On the EU that I was looking at - at the time - there were three divergences in a row - the one which turned the market was the fourth. I was shaken out in my trade after the third divergence I saw but then price continued down to give some people a win - then straight after that move down another divergence occurred which turned out to be the old Div 1-2-3 textbook - that subsequently continued up for a win.
Enter Signature
  • #1,310
  • Mar 16, 2011 7:38am Mar 16, 2011 7:38am
Quoting Divergence
wait
++++++++++++++++++++++++++++++++

Hey, what are you doing here? Do you sometimes sneak in a US session trade?
  • #1,311
  • Mar 16, 2011 7:38am Mar 16, 2011 7:38am
div
just thought id take this opportunity to say thanks for sharing the webinar, along with this thread. I have a much better understanding of trend trading along with divergence set ups and 123s.
  • #1,312
  • Mar 16, 2011 7:55am Mar 16, 2011 7:55am
Quoting v1nce
div
just thought id take this opportunity to say thanks for sharing the webinar, along with this thread. I have a much better understanding of trend trading along with divergence set ups and 123s.
++++++++++++++++++++++++++++++++

I too want to add my thanks for sharing. I made my 1st Flag trade (quasi) on Friday. Up to this point this thread has helped me to 10W & 1L record.

I know I don't always adhere strictly to your rules. That's not to be boasted about. The reason for that is a whole lot chart time and getting a feel for how the dance is going. Up until now I was able to kinda sorta dance, with an extra left foot, leaving me high and dry way to often. Then the Maestro (Div) comes along and adds music. Soon as I heard the music, I thought "What's that Noise?". Can't see the "forest for the trees" and all of those other platitudes. But I feel I've truly learned to Dance. Thank You times 10 and more.
  • #1,313
  • Mar 16, 2011 8:04am Mar 16, 2011 8:04am
Div, do you ever look at larger timeframes to find trend? I get turned around too easily looking at the 5min -- I see price move and I think I see trend, but the 30min and 1hour look like this could just be a large pullback.
  • #1,314
  • Mar 16, 2011 8:10am Mar 16, 2011 8:10am
Another slight departure from exactly what were looking for, however the main tenets of the Flag trade kept me going and gave me the confidence to remain in this trade.

• Divergence on the EU caught my eye, in a place where I might expect a reversal.

• A classic 1-2-3 trade set up on 5m

• I took an entry slightly above the #2 candle, with a stop below last swing, and held on.

No easy ride here. I usually enter with multiple positions so I can begin locking in profit. The average for all positions ended up being +8. Not great but started unloading as neared the -61.8 extension. Final position got dumped after the news. Waited to see which way it would go because I had a cushion. Price was very non committal, started to head back down so took it off at +3.
Attached Image (click to enlarge)
Click to Enlarge Name: Picture 90.png Size: 46 KB
  • #1,315
  • Mar 16, 2011 8:11am Mar 16, 2011 8:11am
I am just realizing how entangled my trading had become. This thread is helping me shed the baggage. If I will just wait, it will come. I was blind to the fact that my urge to trade was stronger than my urge to trade profitably.
  • #1,316
  • Mar 16, 2011 8:15am Mar 16, 2011 8:15am
Quoting diamonddbw
Another slight departure from exactly what were looking for, however the main tenets of the Flag trade kept me going and gave me the confidence to remain in this trade.

• Divergence on the EU caught my eye, in a place where I might expect a reversal.

• A classic 1-2-3 trade set up on 5m
I'm glad your trade worked out! Isn't the divergence you show a trend following divergence, not a reversal?
  • #1,317
  • Mar 16, 2011 8:32am Mar 16, 2011 8:32am
After being a little unsure earlier EU finally makes its mind up and gives us 25 pips!
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 33 KB
  • #1,318
  • Mar 16, 2011 8:33am Mar 16, 2011 8:33am
as u can see market is choppy70 pops h to low this last move down off doc no cutbacks
  • #1,319
  • Mar 16, 2011 8:35am Mar 16, 2011 8:35am
Quoting Brapp
I'm glad your trade worked out! Isn't the divergence you show a trend following divergence, not a reversal?
++++++++++++++++++++++++++++++++

You know, I'm OK with getting a lesson. So please if I'm misinterpreting divergence, let me know.

I've attached a doc. from, I believe BabyPips. Check it out and let me know what you think.

Thanks,
Darryl
+++++++++++++++++++
Attached File(s)
File Type: doc Divergence Cheat Sheet.doc   305 KB | 609 downloads
  • #1,320
  • Mar 16, 2011 8:38am Mar 16, 2011 8:38am
Quoting diamonddbw
++++++++++++++++++++++++++++++++

You know, I'm OK with getting a lesson. So please if I'm misinterpreting divergence, let me know.

I've attached a doc. from, I believe BabyPips. Check it out and let me know what you think.

Thanks,
Darryl
+++++++++++++++++++
Darryl...

Have a look at the word doc you posted and tell me which picture on there is the same as the trade you took????
1 trader viewing now