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Flag trading the trend

  • #1,661
  • Mar 21, 2011 7:33am Mar 21, 2011 7:33am
rcwso i dont see entry bar i see setup bar but next 2 candles didnt get you in ?
  • #1,662
  • Mar 21, 2011 7:34am Mar 21, 2011 7:34am
Quoting Divergence
if i were trading earlier or if this action happened in my time session i would have entered long at the 60 candle there was divergence to get me back into the trend and market tipped its hand as to where support is target would be 79
was looking at it myself,i thought too messy or smth,,but thx for sharing u would take it.
making money in JimB2468 trading room
  • #1,663
  • Mar 21, 2011 7:35am Mar 21, 2011 7:35am
Quoting Divergence
well trend was up there was a pullback you found setup bar it entered you managed trade you made money so i guess you followed the plan only thing is i dont see entry bar next 2 candles didnt get you in?
The entry bar is a good point. That is where I am still struggling a bit to understand. I thought I had it after last nights discussion but looking at it again, I am not sure.

For clarification: you are waiting until the BID line hits the 1 pip above the set-up bar for an uptrend? Not the ASK line?
  • #1,664
  • Mar 21, 2011 7:35am Mar 21, 2011 7:35am
Quoting diamonddbw
For all Reading this thread, please note, by reading at least the first 10 pages and the last 10 pages you will benefit immensely!

Please PM me for free video access.*
Darryl

* Right now the videos take a long time to load. At least 5 minutes, depending on your internet connection. I'm working on reducing the time and will let you know when I have made improvements.

Hi Darry,

I'm unable to PM you as I'm a junior member. Could you pleas advise is there any other way that I can get the links for the free video access, like email me the links to the video access. Thanks.

Cheers,
James
  • #1,665
  • Mar 21, 2011 7:39am Mar 21, 2011 7:39am
Thats right rc guys these charts are bid charts so when we look to go long and you see a candle at 4160 it has to go to 4161 on the chart to enter though you are still buying at 4162 because spread is added in on long trades not short trades so entry would be 4161/4162 if going short you just enter at 4159 on chart make sense?
  • #1,666
  • Mar 21, 2011 7:48am Mar 21, 2011 7:48am
Up, up and away!
  • #1,667
  • Mar 21, 2011 7:48am Mar 21, 2011 7:48am
Here is my trade for NY session, I believe I followed all the rules, I was a little worried about the resistance at 1.41827, but I felt the was enough room to move from entry to see if it will go ...
Attached Image (click to enlarge)
Click to Enlarge Name: chart.gif Size: 292 KB
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  • #1,668
  • Mar 21, 2011 7:49am Mar 21, 2011 7:49am
Thats a good hit startingover YES IF YOU SEE A RESISTENCE AREA WATCH PRICE ACTION AND IF THERE IS A BOUNCE BE READY TO MOVE STOP TO B E
  • #1,669
  • Mar 21, 2011 7:51am Mar 21, 2011 7:51am
Quoting Divergence
Thats a good hit startingover YES IF YOU SEE A RESISTENCE AREA WATCH PRICE ACTION AND IF THERE IS A BOUNCE BE READY TO MOVE STOP TO B E

Thank you
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  • #1,670
  • Mar 21, 2011 7:51am Mar 21, 2011 7:51am
Hey divergence, hope your well,

Just went over your method for half an hour or so, looked at a few charts of my own, differebt pairs, different time frames etc. I thought stuff it I'll give it a go as I understand it. Low and behold 25 minutes later I'm up $2000. Will be taking alot more interest in flag method. From what I've read here, some are starting to overcomplicate a simple system by worrying about evry little twist and turn, half pip, quarter pip etc etc. Don't overcomplicate a good simple system.
  • #1,671
  • Mar 21, 2011 7:52am Mar 21, 2011 7:52am
Hmmmmm.... very nice set up and trade. I think I'll have to watch this discussion thread a lot closer. Thanks to Div and all other contributors.
  • #1,672
  • Mar 21, 2011 7:56am Mar 21, 2011 7:56am
Tx for the clarification div

my set up bar was 11h25 gmt entry bar next bar

BE at 12h20 gmt, but with the spread add, stopped BE just before price went up

oh well, nvm
  • #1,673
  • Mar 21, 2011 7:56am Mar 21, 2011 7:56am
Here is a close up view of that trades sequence TARGET HAPPENS TO BE 1 PIP BELOW LAST HIGH
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.jpg Size: 145 KB
  • #1,674
  • Mar 21, 2011 7:58am Mar 21, 2011 7:58am
Quoting Divergence
if i were trading earlier or if this action happened in my time session i would have entered long at the 60 candle there was divergence to get me back into the trend and market tipped its hand as to where support is target would be 79
Agreed. But out of trading time, pity...
Today's You was Your previously Thought.
  • #1,675
  • Mar 21, 2011 8:03am Mar 21, 2011 8:03am
If we get a setup bar and next candle doesnt trigger the trade and that candle is still above the 10 and cci is still above the 50 that becomes the new setup bar with the high of that candle being the new entry price now if the next bar doesnt get you in then no trade and back to waiting for a pullback just start sequence over again
  • #1,676
  • Mar 21, 2011 8:03am Mar 21, 2011 8:03am
Quoting Divergence
Thats right rc guys these charts are bid charts so when we look to go long and you see a candle at 4160 it has to go to 4161 on the chart to enter though you are still buying at 4162 because spread is added in on long trades not short trades so entry would be 4161/4162 if going short you just enter at 4159 on chart make sense?
Let me see if I can explain:

Uptrend going long:
Set-up bar closes at 1.4160 on the BID chart. I want to enter at 1.4161 on the BID chart. I wait until the entry bar hits 1.4161 and hit "execute." I actually bought at 1.41634 because of the 2.4 spread, from the ASK price.
Now to figure my stop loss and take profit:
Stop loss on a buy is based on the BID price. Therefore, I must take the 1.41634 (ASK price) and subtract the low of the previous swing low, BID price from chart. Lets say that equaled 12 pips, 1.41514. Set the stop loss. Now for the take profit. I must take my entry using the ASK price and add 12 pips. Take profit set at 1.41754. You actually are setting the take profit at a BID price since that is when it will be triggered.

Set-up Bar: 1.41600 BID Price
Entry value: 1.41610 BID Price
Entry Value: 1.41634 ASK Price (spread 2.4 pips)
Low of previous swing low: 1.41514 which is the stop
Difference between Entry Bar ASK PRICE and swing low: 12 pips
Take profit: 1.41754 set off of BID Price for a total of 12 pips

When going short you need to add the spread to set the stop loss and then use that total to set the take profit BID price.

Does that make sense and did I explain it correctly?
  • #1,677
  • Mar 21, 2011 8:09am Mar 21, 2011 8:09am
Does the 2.4 pip distance rule apply only to the "second" entry bar, assuming the first bar after the "setup" bar does not meet the trade entry rules?
  • #1,678
  • Mar 21, 2011 8:09am Mar 21, 2011 8:09am
perfect rc it can be a little tricky at first but once you got it you got it lol
  • #1,679
  • Mar 21, 2011 8:13am Mar 21, 2011 8:13am
yes the 2.4 rule usually relates to the second setup bar but sometimes the original might be away from sma based on what previous candle did maybe the candle closed above 10 but cci might have closed at say 45 making the next candle to open away from sma so we would hope it would come back to within 2.4 pip of sma before we would use it as a setup bar
  • #1,680
  • Mar 21, 2011 8:15am Mar 21, 2011 8:15am
Div..........perfect, thanks for clarifying
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