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Flag trading the trend

  • #2,601
  • Apr 1, 2011 5:02pm Apr 1, 2011 5:02pm
Quoting tbjohnton
in the webinar, there were a few trade possibilities, but once div saw the difference btwn the entry level and stop, he commented that it was too big to trade and mentioned that he usually doesnt take a trade if it exceeds 30
++++++++++++++++++++++++++++++++

Check with Div, but I recall his rule as being 26 pips.

If last swing is over 26, it doesn't matter. Stop & TP are 26 max.
  • #2,602
  • Apr 1, 2011 5:29pm Apr 1, 2011 5:29pm
post 472 pg 32, "30 is limit to do 26 pip stop this was 38"
  • #2,603
  • Apr 2, 2011 7:14am Apr 2, 2011 7:14am
Hi guys n gals,

If anyone is struggling with divergence here is a great site to learn


http://www.babypips.com/school/regular-divergence.html

Tedge
  • #2,604
  • Edited 8:17pm Apr 2, 2011 12:05pm | Edited 8:17pm
Hey Flaggers,

You can adapt the fibonacci retracement tool that is available on all MT4 platforms in 30 seconds to serve as a calculator for your Flag Trend trades. Once you identify the entry level, you can click and drag to the stop level. It will expand (fibonacci extension) to automatically identify the target (exact price to the pip).

It will not calculate position sizing, that can be achieved with a number of other simple methods.

Keep on Pipping,
Jon
  • #2,605
  • Apr 2, 2011 12:50pm Apr 2, 2011 12:50pm
Quoting jmf0805
Hey Flaggers,

You can adapt the fibonacci retracement tool that is available on all MT4 platforms in 30 seconds to serve as a calculator for your Flag Trend trades. Once you identify the entry level, you can click and drag to the stop level. It will expand to automatically identify the target (to the pip).

It will not calculate position sizing, that can be achieved with a number of other simple methods.

Keep on Pipping,
Jon
hi Jon,

can you please elaborate ?
i know how to make fibo to show price value...but what target are you reffering to...fibo extensions ?

thanks in advance
  • #2,606
  • Apr 2, 2011 1:13pm Apr 2, 2011 1:13pm
Quoting jmf0805
Hey Flaggers,

You can adapt the fibonacci retracement tool that is available on all MT4 platforms in 30 seconds to serve as a calculator for your Flag Trend trades. Once you identify the entry level, you can click and drag to the stop level. It will expand to automatically identify the target (to the pip).

It will not calculate position sizing, that can be achieved with a number of other simple methods.

Keep on Pipping,
Jon
How do we adapt?
Thanks Jon
  • #2,607
  • Edited 8:13pm Apr 2, 2011 1:27pm | Edited 8:13pm
Hey Bradu,

I am not aware of how familiar you are with the fibonnaci retracement tool. Once you place the tool on any MT4 chart, you can open it by double clicking the diagonal "dashed" line, then right click on one of the three highlighted dots that appear on the line, then click on Fibo Properties. Next, click the Fibo Levels tab, delete all default levels, add only three levels (0, 1, 2). Just to the right of each of these three levels I have entered the following descriptions. For Level "0", I have entered "Stop $%", for Level 1, I have entered "Entry %$, and finally for Level 2, I have entered "Target %$". (Please note that there is a space between Stop, Entry, Target and %$).

Once this is completed, I can move the tool to the entry level I have identified on my chart, click there and drag it to the stop level I have identified. The tool will automatically expand to designate the target. Immediately to the right of the text that the tool places on the chart will be the price level (that is why you added %$ in the description). All three of these price levels will assist with placing the trade.

Thanks for asking,
Jon
  • #2,608
  • Apr 2, 2011 1:34pm Apr 2, 2011 1:34pm
Hey Bradu,

I did not answer the question about "target". The target in Flag Trading is based on the 1:1 risk/reward. That is the target that the tool identifies on the chart based on the stop level you have determined (yes, it is a fibo extension).

I hope that helps,
Jon
  • #2,609
  • Apr 2, 2011 1:49pm Apr 2, 2011 1:49pm
Quoting jmf0805
Hey Bradu,

I did not answer the question about "target". The target in Flag Trading is based on the 1:1 risk/reward. That is the target that the tool identifies on the chart based on the stop level you have determined (yes, it is a fibo extension).

I hope that helps,
Jon
thanks for the complete answer Jon !
i knew the fib "secret" with price, but it is good for the other guys.

regarding the second part, i know Divergence uses 1:1 R:R, but i tought you use something different for TP...something like fib extension.
for eg. i usually place my TP at 128 fib exension of the impulsive move previous the retracement i enter. most times it gets me more than 1:1 - R:R
hope it make sense
  • #2,610
  • Apr 2, 2011 4:01pm Apr 2, 2011 4:01pm
Quoting Toothman
I don't recall a 30 pip rule for setup candle , just that stop and TP never more than 26. Did I miss that somewhere?
In one of Div's posts where he reiterated his trading rules, he stated: "I do take trades that go up to 30 pips, but I still make them 26 stop, 26 target."

So that's how I interpreted it.

I took this trade cause there was a lot of momentum going into it. But I guess I did break the rules. When you do break the rules and it wins anyway can create bad habits.

Hey Div, would you have taken this or did you take this?

See post 2587 for chart, referring to second long trade with divergence and 123.
"Be the change that you wish to see in the world." --Gandhi
  • #2,611
  • Apr 2, 2011 5:00pm Apr 2, 2011 5:00pm
broke another rule by trading on nfp friday---lol
  • #2,612
  • Apr 3, 2011 5:36am Apr 3, 2011 5:36am
Quoting tbjohnton
broke another rule by trading on nfp friday---lol
"Be the change that you wish to see in the world." --Gandhi
  • #2,613
  • Apr 3, 2011 8:36am Apr 3, 2011 8:36am
How do you go back to see the past webinars?
  • #2,614
  • Apr 3, 2011 2:10pm Apr 3, 2011 2:10pm
hey d4n you want to skype now forget that i remembered you said monday
  • #2,615
  • Apr 3, 2011 2:29pm Apr 3, 2011 2:29pm
suscribed ! excelent thread, simple an concrete strategy. Dv you have mental clarity, unusual qualitative among the forums.
I immediately adopted the technique. Gave you 5 start rating.
best regards an pips.
Humble & Kalcker CLO2 = Covid killer
  • #2,616
  • Apr 3, 2011 2:38pm Apr 3, 2011 2:38pm
thank you jusir i am realy not that smart just overservation over a long period of time and connecting a lot of dots who knows there might even be 1 more dot i need to complete the puzzle or many more or no more time will tell.
  • #2,617
  • Apr 3, 2011 5:36pm Apr 3, 2011 5:36pm
the motto " Find the trend, wait for the pullback, find the setup bar, when it triggers manage trade, MAKE MONEY !!!
  • #2,618
  • Apr 3, 2011 5:40pm Apr 3, 2011 5:40pm
"Let's get ready to ruuuumble." New week, fights on, the bell has wrung.

EU sentiment:
Overall Up trend with main support back at the 1.4150 area. Looking for longs to start the week.

Agreement, disagreement, thoughts, complaints?
  • #2,619
  • Apr 3, 2011 5:44pm Apr 3, 2011 5:44pm
for now yes let the market dictate to us what they want to do it might start with a counter trend trade to a support level then a move up so lets let the operators tip their hand and we will follow them
  • #2,620
  • Apr 3, 2011 5:57pm Apr 3, 2011 5:57pm
Have finally finished processing Divergence 1st Webinar. It's broken into 4 sections and the first section is online now. http://vimeo.com/diamonddbw/albums
Since the 1st webinar is a recording of an online recording, then processed by Vimeo, the quality has suffered, and for some reason (probably something I did wrong) section 4 audio is badly out of sync. The good news here is that everything being covered in this video is covered equally as well in the following 2 webinars.

To make it easier to watch videos in order, there are now 3 albums. However since I only have a FREE vimeo account the album order is not in sequence. A Free Vimeo account is all you will need to view all videos, once you have been added to the "Contacts"* list.
* See page 107 & - Read pages 1-15 & 100-115 MINIMUM if you are newer to the list.

• Album 1: Webinar #1 (in four parts) & Flag Trade Basics Close Up 20 minute video.
• Album 2: Webinar #3 (3 parts) in which Divergence discusses, in depth, 123's & Support and Resistance.
• Album 3: Webinar #2 (3 parts) which deals with identifying the trend, for the purpose of "Flag Trend Trading", on the 5 minute chart.

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