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Flag trading the trend

  • #1,561
  • Mar 18, 2011 10:34am Mar 18, 2011 10:34am
if trend is up why u
going short
  • #1,562
  • Edited 10:55am Mar 18, 2011 10:36am | Edited 10:55am
I closed the trade for a small loss. Concerned about LH LL LH LL etc on GBPUSD The EURUSD may follow. Ray
That is it for me today. One small win in the London session and one small loss in the NY session. Have a good weekend. Look forward to the battle next week.
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  • #1,563
  • Mar 18, 2011 11:07am Mar 18, 2011 11:07am
Quoting Divergence
if trend is up why u
going short
u right, I just liked too much that nice bounce from R/S line.
Thank you for warning, I try to be more disciplined.
  • #1,564
  • Edited 1:08pm Mar 18, 2011 11:33am | Edited 1:08pm
Quoting davidb
...If you are one of the 200+ people who have looked at this summary: PLEASE DISREGARD IT, IT IS NOW WRONG, DO NOT USE AS A BASIS FOR YOUR TRADES! David.
David, I plan to keep the PDF as an excellent summary of this system. The discrepancy that has just been noted is pretty insignificant in relation to the whole and doesn't invalidate the PDF. Still looks good to me! Thanks for the contribution. I hope you'll amend your post about the PDF being "wrong."
  • #1,565
  • Mar 18, 2011 12:02pm Mar 18, 2011 12:02pm
What is wrong with the pdf?
  • #1,566
  • Mar 18, 2011 12:14pm Mar 18, 2011 12:14pm
See post 1550--davidb and Rcwso are just trying to clarify a point.
  • #1,567
  • Mar 18, 2011 12:48pm Mar 18, 2011 12:48pm
Perhaps we should add two points to David's pdf from Div's teachings - for me these two points have been the most important part of my learning. The system is not rocket science but the discipline IS and that is where we all go wrong:

1. TRADE WITH THE TREND - STOP worrying about 123s, divergence etc. etc. until you know you have got it. For me that means getting a 100 winners - so far I am 7 on that route. I have been able to trade instruments I have always struggled with and with a sense of serenity.

There are more than enough trades without continually looking for more - the beauty of this system is removing all that stress: following the rules means not continually thinking "should I shouldn't I". You just know that you are in the right trade - when it doesn't work that has to be down to an aberration, which is going to happen, not to the fact that you shouldn't be in the trade. I have found that I have had to throw out lots of learned behaviours. To that end, I deleted everything that was not Div's system from my computers. It reminds me of starting golf from scratch again and having to unlearn all the things I had been taught for 8 years, things that were just not working for me. That was far harder than learning a new swing.

2. Do the maths - Div's discipline is all about taking HIGH HIGH probability trades and his rules are all designed to that end - trading times, the signal candle, the entry rules + 1pip, no more than 2.4 pips, the 1:1 RR - it is beautiful. And if you are not 99.9% sure, DONT - dont risk 3%. This is not the last train and another train will be along.
  • #1,568
  • Mar 18, 2011 12:55pm Mar 18, 2011 12:55pm
Quoting passgo
Perhaps we should add two points to David's pdf from Div's teachings - for me these two points have been the most important part of my learning. The system is not rocket science but the discipline IS and that is where we all go wrong:

1. TRADE WITH THE TREND - STOP worrying about 123s, divergence etc. etc. until you know you have got it. For me that means getting a 100 winners - so far I am 7 on that route. I have been able to trade instruments I have always struggled with and with a sense of serenity.

There are more than enough trades without...
Yep,nice words Passgo
  • #1,569
  • Mar 18, 2011 1:40pm Mar 18, 2011 1:40pm
Quoting passgo
Perhaps we should add two points to David's pdf from Div's teachings - for me these two points have been the most important part of my learning. The system is not rocket science but the discipline IS and that is where we all go wrong:

1. TRADE WITH THE TREND - STOP worrying about 123s, divergence etc. etc. until you know you have got it. For me that means getting a 100 winners - so far I am 7 on that route. I have been able to trade instruments I have always struggled with and with a sense of serenity.

There are more than enough trades without...
++++++++++++++++++++++++++++++++

Very well put. 100% Fat Free.

Read the last 5 pages, no, really really read the last 5 pages, pay attention, re-read the last 5 pages, go to work, make money. It's all here.

"If you are lucky enough to find a way of life you love, you have to find the courage to live it."
~ John Irving - Novelist
  • #1,570
  • Mar 18, 2011 3:18pm Mar 18, 2011 3:18pm
d absolutely briliant article you are now my spokes person
  • #1,571
  • Mar 18, 2011 3:28pm Mar 18, 2011 3:28pm
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Close-Up

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The best trade I ever made was my SIN for Jesus' RIGHTEOUSNESS.
  • #1,572
  • Mar 18, 2011 3:54pm Mar 18, 2011 3:54pm
Quoting Divergence
d absolutely briliant article you are now my spokes person
++++++++++++++++++++++++++++++++

Thanks, but it was Passgo & rcwso that have chiseled the Marble Statue out of your brilliant, but merely, common sense approach. They're not the only ones. I see alot people on this thread that are truly working to absorb & fully understand what it is you've been trying to tell us, and put it into words so that others may benefit.

What you said in yesterday's webinar about this thread being represented by the world community, working together for one anothers benefit (paraphrasing here) is a concept which I TOTALLY believe is espoused by the vast majority of people on earth. But because of many world leaders (greedy, power-mongers) they would have us believe in one thing or another, to get us to hate our neighbors. I'm crying Foul!

Our individual interpretation of what's going on around us, is no different than what's going on in this thread. If you really care, and pay attention, you will get it. I truly wish on this thread and in this world, we do get it before our accounts go away or our way of life is further compromised. (~end rant)

Thanks Div, from all of us.
  • #1,573
  • Mar 18, 2011 4:05pm Mar 18, 2011 4:05pm
jimmy,

Not trying to subtract anything from what Divergence has shared, but when I saw your charts it got me to thingking.......you really could have traded that Flag without the added indicators, because you had the current trend direction correct (UP). Even if one does use the indicators this is a simple concise way of trading price action.

Not trying to single you out, but your charts tell the story & I appreciate you taking the time to share with everyone.

Good trades to all & a great weekend.
_____________________________
  • #1,574
  • Mar 18, 2011 4:20pm Mar 18, 2011 4:20pm
Quoting acetrader
jimmy,

Not trying to subtract anything from what Divergence has shared, but when I saw your charts it got me to thingking.......you really could have traded that Flag without the added indicators..
Hey Ace,
You're right, I could have, but using the indicators takes out any ambiguity with entry. And I wanted to show clearly Divs entry rules.
That particular trade has hit profit since I posted.

Jimmy
The best trade I ever made was my SIN for Jesus' RIGHTEOUSNESS.
  • #1,575
  • Mar 19, 2011 3:19am Mar 19, 2011 3:19am
Quoting Rcwso
Here is the chart that I posted earlier with the corrected definitions in accordance with Divergence's direction below.

New definitions:

SET-UP BAR--This is the bar that sets you up to look for the ENTRY bar and enter a trade.
Set-up bar requirements:
Look for the trend
Look for the pullback
Bar crosses the SMA up for an up trend and down for a down trend
Bar is within 2.4 pips of the SMA (high of the bar for a down trend and low of the bar for an up trend)
CCI is > 50 for an up trend or < -50 for a down trend
Once these are met you have a...
Hi

Thanks for the clearing things up with a "picture" for those of us that were confused.

Assuming all conditions are met - SMA, CCI and trend direction- Is there a maximum for Set-up bar - e.g. suppose the set-up bar is 30pips, do you still take the entry or pass it altogether?

Thanks.
  • #1,576
  • Edited 10:42am Mar 19, 2011 6:52am | Edited 10:42am
max stop and target 26 pIps setup bar has no size rule
  • #1,577
  • Mar 19, 2011 8:55am Mar 19, 2011 8:55am
Quoting Divergence
the way to trade the trend is not with indicator crosses or any other kind of indicator to tell you there is a trend thats the best way to get whipped. Firstly a trend is defined as higher highs and higher lows for uptrend and lower lows lower highs for down so if you can see that then all thats needed once a trend has formed is to trade the pullbacks. i am not starting this thread to be an on going thing just tired of all the systems on here this is the frame work to making money. I trade the 5 min chart eurusd never look for more that 26 pips...
Higher lows define an uptrend.

Lower highs define a downtrend.
  • #1,578
  • Mar 19, 2011 9:37am Mar 19, 2011 9:37am
Quoting jimmynoodles
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Nicely done dude. Though very late, still nicely done. One should never trade this late on a Friday. Correct me if I'm wrong, but as far as I know the big boys only trade the first 2 hours of every session after that its us specs. That is why Divergence trade the times he does. Again correct me if I'm wrong. That's why I'm tired of being somebodies producer(high stakes poker), so don't you be, top over trading.
  • #1,579
  • Mar 19, 2011 10:43am Mar 19, 2011 10:43am
Quoting tjfxtrader
higher lows define an uptrend.

Lower highs define a downtrend.
i thought i already said that lol
  • #1,580
  • Mar 19, 2011 12:22pm Mar 19, 2011 12:22pm
Divergence. Sent Email last night with Video update.
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