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Flag trading the trend

  • #3,001
  • Apr 11, 2011 4:11am Apr 11, 2011 4:11am
Quoting Divergence
here is recorded link let me know if it works http://www.anymeeting.com/tradingthetrend/EE56DA8584
Thanks for recording the webinar. Just finished watching it. Learnt a lot. Ray
  • #3,002
  • Apr 11, 2011 5:07am Apr 11, 2011 5:07am
another non eventful morning
lets hope the US is in a trading mood.
  • #3,003
  • Apr 11, 2011 5:39am Apr 11, 2011 5:39am
I have a question which sounds dumb, and most likely is dumb.
I have a real problem figuring out what the trend is, and trading decisions are nearly always hampered by the fact that I'm caught in 2 minds, especially if looking at different time frames for SR levels.
To show you what I mean, on the 5 min gbusd chart (1st chart. My apologies-nothing on the choppy eurusd today), this is a great trade (I think). 5 min trend is down etcetc.

But if you go onto the 1hr chart (2nd chart), you can see we're in an uptrend, and the price is mired in all areas of support if it pulls back, despite numerous sell signals doubtlessly occurring on the 5 min chart. And sure enough, with some divergence (after the original sell signal), the price went higher.

And my question is this-on nearly any 5 min trade, it seems that price IS NEARLY ALWAYS NEAR S/R LEVELS that muddy the waters regarding whether to enter or not. How do you decide? At no point in the last few days of trading the GBUSd would I have ever felt comfortable going short thanks to where price was heading into on the longer term time frames.

Is this how you other traders view this-would you not go short at all? I hope that makes sense, sorry if this has caused confusion. I've watched the vid that Divergence kindly made available, it all seems easy until Real Time kicks in....
Attached Image(s) (click to enlarge)
Click to Enlarge Name: flag gbusdbuy 5 min.gif Size: 19 KB
Click to Enlarge Name: flag gbusdbuy 1 hour.gif Size: 18 KB
  • #3,004
  • Apr 11, 2011 5:52am Apr 11, 2011 5:52am
Quoting bootsyjam
I have a question which sounds dumb, and most likely is dumb.
I have a real problem figuring out what the trend is, and trading decisions are nearly always hampered by the fact that I'm caught in 2 minds, especially if looking at different time frames for SR levels....
Booty.... you answered your own question really.
overall trend on gu is up so the best setups would be long off support.

There was a possible div 123 off a support line this morning but no good setup bar. You dont want to be taking a flag short very close to support as you say regardless of overall trend.
Attached Image (click to enlarge)
Click to Enlarge Name: gu.gif Size: 27 KB
  • #3,005
  • Apr 11, 2011 6:08am Apr 11, 2011 6:08am
Quoting bootsyjam
I've watched the vid that Divergence kindly made available, it all seems easy until Real Time kicks in....
If you watched the vid you'll have seen all the s/r lines on the chart.... you dont have any
  • #3,006
  • Edited 7:56am Apr 11, 2011 6:14am | Edited 7:56am
Div,
Thanks for yet another excellent webinar! thanks Diamond for putting it together, too.

If FF put out an Oscar contest your last webinar would have been a nominee for best system video for sure .

Just one question though - I'm trying to find an earlier entry on those flags, so far my results are not conclusive... am I just wasting my time? did you test other possibilities (CCI values etc') before touching base with current setup bars?

thanks again and may the pips be with all

fun
  • #3,007
  • Apr 11, 2011 6:34am Apr 11, 2011 6:34am
Quoting d4n
If you watched the vid you'll have seen all the s/r lines on the chart.... you dont have any
D4N
In the particular example of GBUSD 1 hour chart, I could have lines all over the place, but they would also serve to obscure the fact/my point that price was always moving into an area of S/R, and that lines don't help in this particular instance. I've drawn lines in here to show what I mean-all areas are decent S/R points-the multitude of them serves to show how confusing it can be to work out what trend you're in when in the 5 min chart.
Attached Image (click to enlarge)
Click to Enlarge Name: flag gbusdbuy 1 hour.gif Size: 18 KB
  • #3,008
  • Apr 11, 2011 6:46am Apr 11, 2011 6:46am
hi Divergence,
great thread. thanks for the webinar. is it downloadable ?
  • #3,009
  • Apr 11, 2011 6:51am Apr 11, 2011 6:51am
Quoting bootsyjam
D4N
In the particular example of GBUSD 1 hour chart, I could have lines all over the place, but they would also serve to obscure the fact/my point that price was always moving into an area of S/R, and that lines don't help in this particular instance. I've drawn lines in here to show what I mean-all areas are decent S/R points-the multitude of them serves to show how confusing it can be to work out what trend you're in when in the 5 min chart.
ok, i do understand what your saying but you're still not quite gettin this system.

I can only comment / help on this system AS IT IS cause this is what i trade and i know it works.

1) We dont draw s/r lines on the 1 hour chart.
2) s/r lines used in this system are areas of previous sup that have turned into res or vice versa, some of yours are just places where price has stopped recently.
3) these lines are important if price is near them just be patitent and wait until it isnt .. even if it takes a month!

going back to my motto
Read the rules over and over until you fully understand them..... and then read them some more!
This system works as it is and will make you alot of money if you master it. Master it as it is before you try to change or add anything.

Already this morning we've had people taking about S1, changing indicator values, lookin at H1. Why cant people just trade it as it is?

Are there any psychologists here that can explain to me this human need to change things?
  • #3,010
  • Apr 11, 2011 6:53am Apr 11, 2011 6:53am
EU

Now.... price has just broken through major support (which was previously resistance) so what are we going to look for???
  • #3,011
  • Apr 11, 2011 6:57am Apr 11, 2011 6:57am
Quoting d4n
EU

Now.... price has just broken through major support (which was previously resistance) so what are we going to look for???
Short.
  • #3,012
  • Apr 11, 2011 6:58am Apr 11, 2011 6:58am
Quoting d4n
EU

Now.... price has just broken through major support (which was previously resistance) so what are we going to look for???

Please miss!

A pullback?!
  • #3,013
  • Apr 11, 2011 6:59am Apr 11, 2011 6:59am
Quoting d4n
EU

Now.... price has just broken through major support (which was previously resistance) so what are we going to look for???
looking for the support now turn into a resistance (pullback) and go short
  • #3,014
  • Apr 11, 2011 7:01am Apr 11, 2011 7:01am
Dn4,

What pairs are you mainly watching with this system?
  • #3,015
  • Apr 11, 2011 7:04am Apr 11, 2011 7:04am
Quoting vince
looking for the support now turn into a resistance (pullback) and go short
Gold star for vince

but remember overall trend is still up so this would be a slightly riskier counter.
  • #3,016
  • Apr 11, 2011 7:08am Apr 11, 2011 7:08am
Quoting d4n
Gold star for vince

but remember overall trend is still up so this would be a slightly riskier counter.
thanks d4n
Did you take any g/u trades today?
  • #3,017
  • Apr 11, 2011 7:11am Apr 11, 2011 7:11am
no trading till later this afternoon...gotta be here at my regular job
  • #3,018
  • Apr 11, 2011 7:11am Apr 11, 2011 7:11am
Quoting Rcwso
Dn4,

What pairs are you mainly watching with this system?
eu + gu... i have au and ej open in the background but very rarely trade them.

No vince, no trades for me this morning.
  • #3,019
  • Apr 11, 2011 7:19am Apr 11, 2011 7:19am
Quoting d4n
eu + gu... i have au and ej open in the background but very rarely trade them.
Would you be willing to post a GU chart with your support/resistance lines? I find that I am drawing many more on that chart and it doesn't seem that there is a whole lot of room between the lines for a move without hitting one or the other.

Maybe you are not drawing as many as I am. Or are you waiting for the "perfect" set-up on the GU.
  • #3,020
  • Apr 11, 2011 7:22am Apr 11, 2011 7:22am
Quoting Rcwso
Would you be willing to post a GU chart with your support/resistance lines? I find that I am drawing many more on that chart and it doesn't seem that there is a whole lot of room between the lines for a move without hitting one or the other.

Maybe you are not drawing as many as I am. Or are you waiting for the "perfect" set-up on the GU.
i posted one a few posts back..... only 2 lines on mu gu chart at the moment (there is a line around 45 aswell but i took it off)

a nice 123 on gu just now off res but without divergence so worth looking at for reference but not one for the beginners.
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