Flag trading the trend

Thanks d4n for this

well we got the bounce at the 85.237-238.. A bit of a hard on at that.. Maybe will get some help on the 85.328 area .. but maybe not .. will keep this one tight..

Ouch !! Well this one didn't work as well as expected..Thought we might get a hold around the 85.299 area...Was not met to be. We got out on a 5 plus pip stop..Now the question is are we going long..mm ?

Actually we did..

In at 85.379... It little bit larger entry than I would have like.. but given this time of the eve.. reasonable and we are 4 pip good at this writing.. will see?

Still looking good at this point...But definitely a slow ride..We tested some minor support looking left and the MA... and we now moving long again at this writing.. but real slooooow !!..

Well that didn't go as well as expected.. Stopped out on 5 plus.. glad I did when I did as we can see a stronger move short on the down candle. . We are done for the eve...

First trade for today. Lets see how it goes. Ray

As I said in an earlier post the prevailing trend is up for now. Since the 4315 level was hit next could be 4350-4400, but some retrace to say 4250 would not be out of the question. Nothing is 100% certain thats for sure.

1234, Looks good to me, but we could be wrong.

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nice trade Ray...

all we need now is for this 123 to develop and we can have the afternoon off

chaps, I see divergence on EU and a double top!

PS I agree there is divergence , break of 96 for 123?

Those of you who are applying this strategy to different currency crosses, are you guys finding that the default settings used for EU is applicable?

Also. does anyone here ever use the usdx in their analysis

Apologies, I know this system is just for EURUSD but I use it on other pairs.
Missed EurUSD signal as was faffing around. Here is EURGBP buy setup, and exit, for 1:1 RR profit. Price continued higher.

Note the blue arrows showing the trigger candle-entry was made at the middle blue line, exit for profit was made at the top blue line.
There was divergence showing on my stoch indicator (find it easier to see divergence on this than on RSI-is v similar readings though).

Also, I'm more aggressive with my stops, and put it underneath the trigger candle if the candle is quite far from the swing low/high. Makes the 1:1 RR easier to achieve, but of course, with more risk of being stopped out.
Am looking to experiment with profit taking as I think there is more scope for holding on for better RR but if it ain't broke then don't fix it I suppose!

This system is a v nice amalgamation of other things I've looked at, with the difference being there is more effort made to wait, and confirm the pullback has ended before the trend has resumed. Also, Divergence's simple but effective explanation of working out the trend, trading off pullbacks once resistance has been breached, is very helpful.

Sorry mannai, didn't see your post.
Yes I think the default settings for the CCI 8 historagram are appicable across other pairs. EURUSD is prob the best as it is volatile but also has narrow spreads (usually).

As for USDX, take a look at the USCHF charts and the USDX charts side by side, they tend to look quite similar, so I use USCHF as my gauge of $ strength/weakness.

im having a go at this cheeky counter short

Good dat D.. Sorry for the delay answer.. Yes 10 EMA Median Price HL/2.. Probably just the dif broker.. My guess??

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Yes & Yes. As long as there is decent movement, this method is very consistent. You have to have the trend correct, or pick a valid 123 reversal, and you should do quite well. Don't waste your time on slow moving pairs. There are plenty of set ups on e/u, g/u, e/j and other majors that move well. When you get away from these core 3, spreads can be limiting, since this method is really a scalp. If you are only shooting for 10-15 pips and your spread is 4-6, there is not much left over for you.

I always have the DX open for reference. I treat it like any other chart by looking for s/r, divergence, etc. I also have the e/g, u/j, gold, oil, dow, s&p, dax, & ftse open for a point of reference. Although stocks & commodities I'm only looking for movement.

took its time but we got there in the end.
not for the faint hearted that one

123 setting up on G/U right now.

@ Diamond,
Am v interested to see your analysis, I've entered before the 1-2-3 completes (at least I think I have) thanks to divergence showing on my 8,2,2 stoch, the trigger going on the cci, and the fact that it's near (well, just under) prev support.
So do you wait for this trade to 1-2-3? Also, where do you draw your TL from/to, have 2 different kinds showing on my chart. Are you waiting for the retrace down, and then waiting to go long with the cci trigger?
Blue arrow shows cci trigger.

Update. Exited at profit for 1/1.5 RR