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Flag trading the trend

  • #3,021
  • Apr 11, 2011 7:27am Apr 11, 2011 7:27am
Quoting d4n
i posted one a few posts back..... only 2 lines on mu gu chart at the moment.

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

I certainly had more lines on mine. That made a big difference on how I was seeing the pair and what is going on.
  • #3,022
  • Apr 11, 2011 7:30am Apr 11, 2011 7:30am
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.
  • #3,023
  • Apr 11, 2011 7:45am Apr 11, 2011 7:45am
looks like div is forming in EU
  • #3,024
  • Apr 11, 2011 7:55am Apr 11, 2011 7:55am
Saw this but did not take it using strict rules. GU had divergence, and a 123 pattern but the retracement indi did not register above 50 after candle closed above the MA...

It actually was a winner overall guess we just miss some with strict rules...
Attached Image (click to enlarge)
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  • #3,025
  • Apr 11, 2011 8:00am Apr 11, 2011 8:00am
Quoting brettM
Saw this but did not take it using strict rules. GU had divergence, and a 123 pattern but the retracement indi did not register above 50 after candle closed above the MA...

It actually was a winner overall guess we just miss some with strict rules...
Speaking from where you mentioned to enter the trade: If it doesn't follow the rules, it is not a valid trade. That did not follow the rules and therefore would not have been taken. Strict or not, they are not the rules. You can find all kinds of winners not following the rules. Hindsight doesn't count with or without the rules.

Bottom line: This did not follow the rules and therefore was not a valid trade in accordance with Divergence's system.
  • #3,026
  • Apr 11, 2011 8:03am Apr 11, 2011 8:03am
Quoting brettM
Saw this but did not take it using strict rules. GU had divergence, and a 123 pattern but the retracement indi did not register above 50 after candle closed above the MA...

It actually was a winner overall guess we just miss some with strict rules...
Brett... you're using a cci instead of an rsi.


sometimes i feel like i am banging my head against a brick wall
(no offence to you brett )
  • #3,027
  • Apr 11, 2011 8:07am Apr 11, 2011 8:07am
Dn4,

I know that Divergence talks about taking trades with a 123 and NO divergence to get back into a trade. Is there anything about taking a divergence trade with NO 123 to get back into a trend?

example: would you count the current divergence and bounce near the support line on the EU as an entry back into the trend without the 123? Or would you wait for a better set-up?
  • #3,028
  • Apr 11, 2011 8:10am Apr 11, 2011 8:10am
Quoting Rcwso
Dn4,

I know that Divergence talks about taking trades with a 123 and NO divergence to get back into a trade. Is there anything about taking a divergence trade with NO 123 to get back into a trend?

example: would you count the current divergence and bounce near the support line on the EU as an entry back into the trend without the 123? Or would you wait for a better set-up?
no.. you always need a 123 to confirm the divergence. plus the div on the eu just now didnt really look good to me, i like to see more distinctive peaks.
  • #3,029
  • Apr 11, 2011 8:12am Apr 11, 2011 8:12am
d4n,
Let me guess what you're thinking on eu . If divergence forms here, not enough room to 442 resistance. Possible counter trend flag setting up but support at 221. So stay out.
  • #3,030
  • Apr 11, 2011 8:13am Apr 11, 2011 8:13am
Quoting d4n
no.. you always need a 123 to confirm the divergence. plus the div on the eu just now didnt really look good to me, i like to see more distinctive peaks.
Got it. Thanks.
  • #3,031
  • Apr 11, 2011 8:22am Apr 11, 2011 8:22am
I just finished looking at the webinar. It was v informative.

Is there a 123 forming on EU now (14.19 BST) for a possible long?

Is it the wick or the open of the candle that needs to be within 2.6 pips of the MA?

Advance apologies for simple questions.

Best wishes.

Carac.
  • #3,032
  • Apr 11, 2011 8:22am Apr 11, 2011 8:22am
Quoting Toothman
d4n,
Let me guess what you're thinking on eu . If divergence forms here, not enough room to 442 resistance. Possible counter trend flag setting up but support at 221. So stay out.
almost.... this is where personal preference comes in.

personally here if we see div 123 i would take it long but be very wary of the 42 level.
but all down to what you are comfortable with, remember you only really need 10 winners a month to make a good return so no need to over trade.
if 42 turns into res then we can look at shorts
  • #3,033
  • Apr 11, 2011 8:29am Apr 11, 2011 8:29am
Quoting d4n
Brett... you're using a cci instead of an rsi.


sometimes i feel like i am banging my head against a brick wall
(no offence to you brett )
thanks still half asleep setting up charts...hope those are soft bricks....
  • #3,034
  • Apr 11, 2011 8:30am Apr 11, 2011 8:30am
First trade of the week. Lets see how it goes. Entry slipped a bit. Good trading to all. Ray
Attached Image (click to enlarge)
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  • #3,035
  • Apr 11, 2011 8:34am Apr 11, 2011 8:34am
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.
++++++++++++++++++++++++++++++++

Sounds to me like you are getting too emotional about this. No Problem, it goes with the territory. So, if we are to believe all of the "Shrink Rap" we here and read regarding trading, then this would be a good time to stay out of the market.

The GU is tough read now at best. My chart is full of s/r lines too. If I have learned One Thing on this thread, it's "If you are 95% Comfortable with the trade, DO NOT ENTER!" I don't think it's possible to be 100% comfortable because then we would be fooling ourselves. If you are not seeing it, maybe the market isn't giving it.

I've almost entered 5 or 6 trades since the Asian session began 14 hours ago. At this point zero trades for me. I simply do not "Feel the Love". That's totally OK, because I haven't lost one dollar.
  • #3,036
  • Apr 11, 2011 8:37am Apr 11, 2011 8:37am
Quoting diamonddbw
++++++++++++++++++++++++++++++++

Sounds to me like you are getting too emotional about this. No Problem, it goes with the territory. So, if we are to believe all of the "Shrink Rap" we here and read regarding trading, then this would be a good time to stay out of the market.

The GU is tough read now at best. My chart is full of s/r lines too. If I have learned One Thing on this thread, it's "If you are 95% Comfortable with the trade, DO NOT ENTER!" I don't think it's possible to be 100% comfortable because then we would be fooling...

if in doubt stay out... there will be plenty more trades.
  • #3,037
  • Apr 11, 2011 8:38am Apr 11, 2011 8:38am
Since our trades are always based on the E/U, One chart I ALWAYS have open is the Eur/Gbp. This saves my butt quite often. Like right now, the gbp is very strong according to e/g chart. This has kept me out of trades in the e/u & e/j.

But I don't like the gbp/usd either for reasons cited in my previous post.

It's not a bad idea to have a dollar exchange chart open either, imho.
  • #3,038
  • Apr 11, 2011 8:41am Apr 11, 2011 8:41am
btw my shingle is hung and the first sessions have concluded, my question is "Who gets the Bill"?
  • #3,039
  • Apr 11, 2011 8:41am Apr 11, 2011 8:41am
Quoting 1234
First trade of the week. Lets see how it goes. Entry slipped a bit. Good trading to all. Ray
In accordance with the rules, what signal got you into this trade?

Just wondering and learning.
  • #3,040
  • Apr 11, 2011 8:58am Apr 11, 2011 8:58am
Quoting Rcwso
In accordance with the rules, what signal got you into this trade?

Just wondering and learning.
The last HL before the last HH was a key level that I had marked on my chart from Friday. Looking to go long if it appeared as support or go short later if it broke. The rest was CCI above 50 for setup candle and setup candle above 10 sma. The flag was not quite 45 degrees. Overall I thought it was a good shot. Ray
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