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Flag trading the trend

  • #2,501
  • Mar 31, 2011 9:28am Mar 31, 2011 9:28am
Good thing about this method is the entry.....I was looking short....didn't get a trigger so I wait....then boom..shoots up. And the wait continues
  • #2,502
  • Mar 31, 2011 9:29am Mar 31, 2011 9:29am
The way I see it, trend has been up since we broke through 150 and will stay up at least for now until 150 is tested and broken through to the lower side. Did you guys get the last trade?
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  • #2,503
  • Mar 31, 2011 9:29am Mar 31, 2011 9:29am
Went long E/U at 9:35 AM EST..... 13 pip SL, 13 pip TP.......Winning trade
Any comments as to the validity of my thinking, based on the precepts being taught....Or was I just lucky?
  • #2,504
  • Mar 31, 2011 9:30am Mar 31, 2011 9:30am
Quoting Fun Demental
I wish to remind all the 'confused' guys what Div said on one of the webinars
which is very important to this trading system: we concentrate on one time frame to find trends and that is the 5 Mins'. currently we are in DOWN trending movement (16:00 GMT) and we should look for pullbacks to the upside. assumming we must take trades at this time of day.

fun
fun... no offence matey but you havnt even got the time right
  • #2,505
  • Mar 31, 2011 9:31am Mar 31, 2011 9:31am
Fun, thanks for reminder- that was what i thought, anyway the system kwpt me out of trade so all is good (around the 10 am est time today on euro)

The higher time frames did of course show up trend
  • #2,506
  • Edited 9:34am Mar 31, 2011 9:32am | Edited 9:34am
Quoting Fun Demental
I wish to remind all the 'confused' guys what Div said on one of the webinars
which is very important to this trading system: we concentrate on one time frame to find trends and that is the 5 Mins'. currently we are in DOWN trending movement (16:00 GMT) and we should look for pullbacks to the upside. assumming we must take trades at this time of day.

fun
Hi Fun,

I do not agree.

To my understanding EU on the M5 timeframe is still in an uptrend because the last higher low of the uptrend before was not taken out yet by the down move...

Cheers,
Olarion
  • #2,507
  • Mar 31, 2011 9:32am Mar 31, 2011 9:32am
Quoting diamonddbw
++++++++++++++++++++++++++++++++

I agree UP.

For how long though?

• If you go way out you will see euro is making a triple top on daily charts.

• Dollar index is at weekly supply trend line.

• GBP, similar to the euro, @ daily resistance.

This may be somewhat far sighted for our purposes, but something to keep in mind.
Good stuff D. !

We as traders tend to stay in the micro view and forget about larger macro view. Actually this fits in with Div's approach to defining the trend, which is a must bigger picture than just looking at the 5 min time frame. ( one may sugget the most difficult part of Div's method )

Getting into a trade only to run into some major resistance may not be the best move. On the other hand getting into a trade after it has cleared something major ( right set up of course ) could prove "very " profitable

just my 2 cents
  • #2,508
  • Mar 31, 2011 9:37am Mar 31, 2011 9:37am
Quoting Toothman
The way I see it, trend has been up since we broke through 150 and will stay up at least for now until 150 is tested and broken through to the lower side. Did you guys get the last trade?

Hi Toothman,

did not get the last up move, but I agree totally!
  • #2,509
  • Mar 31, 2011 9:38am Mar 31, 2011 9:38am
I took the same EU trade, since I thought Trend was up for plus 12, but I don't know if it was done properly, now. That double top threw me, Div.
  • #2,510
  • Mar 31, 2011 9:39am Mar 31, 2011 9:39am
This is best explanation i'm a visual learner
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  • #2,511
  • Mar 31, 2011 10:15am Mar 31, 2011 10:15am
Quoting Olarion1975
Hi Toothman,

did not get the last up move, but I agree totally!
Yes, at 9:35.
  • #2,512
  • Mar 31, 2011 10:39am Mar 31, 2011 10:39am
OK ladies & gents, trend is subjective If your frame of reference is too limited you might get some false readings.

Every HH/HL or LH/LL on the 5m chart, does not make a trend change for the purpose of trading Div's Flag Trade.

I know that this is what we've all been taught to look for, elsewhere in the 4X world, to determine trend change. But almost every incident of using HH/HL & LH/LL to determine a new trend (that I've read) has been on 4hr or higher time frames.

Looking at this chart and comparing it to Div's comments and videos, my interpretation tells me that before I'm looking for down trend moves, price needs to be AT LEAST 1.4147. And for myself, I really would not be that comfortable trading down until price moves, and stays below 1.4110.

You know the drill - the 2¢ thang!
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  • #2,513
  • Edited 11:17am Mar 31, 2011 10:55am | Edited 11:17am
Ive taken +10 on this as its getting late and eu may have run out of steam

not bad for a trade i told you about hours ago!!

although price did bounce of 63 so i hope you will forgive me for those 3 pips


Quoting d4n
what we need now is a bounce off the 50-60 area followed by a pullback and away we go
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  • #2,514
  • Mar 31, 2011 11:01am Mar 31, 2011 11:01am
Quoting diamonddbw
OK ladies & gents, trend is subjective If your frame of reference is too limited you might get some false readings.

Every HH/HL or LH/LL on the 5m chart, does not make a trend change for the purpose of trading Div's Flag Trade.

I know that this is what we've all been taught to look for, elsewhere in the 4X world, to determine trend change. But almost every incident of using HH/HL & LH/LL to determine a new trend (that I've read) has been on 4hr or higher time frames.

Looking at this chart and comparing it to Div's comments and videos,...
Thats how i see it D!
  • #2,515
  • Mar 31, 2011 12:36pm Mar 31, 2011 12:36pm
THis discussion is most helpful!
  • #2,516
  • Mar 31, 2011 1:16pm Mar 31, 2011 1:16pm
For those getting confused by trend here is a really simple alternative way to look at things....

Firstly lets forget about the word trend and use the word direction instead.

Now as we all know price moves in up and down waves to get to its destination so there will always be an overall direction (as price moves from a to b) and an immediate direction (depending on where it is in its waves).

So to find the OVERALL direction we just need to zoom out and see which way price is heading.... see pic 1

Then when we zoom back in we can see what the IMMEDIATE direction of price is..... pic 2

Trades can always be taken in any direction but the general thinking is that if the immediate direction is the same as the overall direction then your trade has a better chance of winning.

As you can see on pic 2 you could have taken the trade at 15.30 which was AGAINST the overall direction and had a winner so it just depends on how cautious or aggresive you are with your trading. Everyone is different and everyone has a different opinion which is the thing that makes trading possible, so get as much info as you can and trade according to your style.

Hope this helps a few of you.
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  • #2,517
  • Mar 31, 2011 5:08pm Mar 31, 2011 5:08pm
trading was a little tough today except for those who traded london session you guys are racking up hey d4n i sent you a pm
  • #2,518
  • Edited Apr 1, 2011 3:23am Mar 31, 2011 5:17pm | Edited Apr 1, 2011 3:23am
Quoting Olarion1975
Hi Fun,

I do not agree.

To my understanding EU on the M5 timeframe is still in an uptrend because the last higher low of the uptrend before was not taken out yet by the down move...

Cheers,
Olarion
Look again Olarion. From 13:00 31/3 price kept going down.
H 1.4232 @ 10:15 GMT
LH 1.4227 @ 13:00
LL 1.4163 @ 14:00
LH 1.4210 @ 15:15
LL 1.4152 @ 21:45
and should go down probably some more.
It may resume to move UP with bigger trend but we have the system to ride it back haven't we
  • #2,519
  • Mar 31, 2011 5:23pm Mar 31, 2011 5:23pm
question based on this chart which direction are we in
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  • #2,520
  • Mar 31, 2011 5:30pm Mar 31, 2011 5:30pm
Quoting Divergence
question based on this chart which direction are we in
up
Could it be Man is trying to be something without knowing they're complete?
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