Flag trading the trend

Hey Joel, sounds like I'll have to take you and Div to Johnny Bruscos instead of Ruth's Chris.

I think the ants got him.......

Great...............Can I bring Indi????

tb62 how do you know about johnny brusco is this tyler

Yeah, this is Tyler.....I looked it up...it is probably 10 min from my house. Never been there though.

well if its 10 minutes from your house and its 5 from mine you must be in my backyard

You see what the Forex can do.....We are the world.........Lets all sing along..

Well....10 to 15 mins....I live right off of 601, close to 49.

youve heard me sing already joel do you want to scare everyone away

Hi guys...

I am still reading the thread and trying to get my head around all of the rules but I wanted to contribute to the thread. I thought I would give you my take on trend determination on a 5 min EU chart.

Take a look at the chart, I've gone to the lowest point of the move up, far left side. Start with a low and high (green line) and then we get a higher low. As time moves on you see we get a lot of smaller waves but notice that none of them break the first wave from low to high and they don't break the high to higher low. As these smaller waves are happening you may label them but when you look at the bigger picture until price breaks above or below the high or low points of the first swing we won;t have any significant movement (see blue congestion area 1). Yellow lines are support and resistance drawn off 5 min chart. Price breaks the first high with momentum and never comes back and tests the high. This tells me we're in a up trend and we should look for long entries. In an up trend I want to see higher lows. I don't want to see the lows broken to the downside. I look for significant highs and lows to label. This will take a little practice on your part. Now we get to the highest high above congestion area 2 (blue shaded area). If we look at the last higher low before the highest high you'll notice that all of the price action that follows is contained in between that swing. It looks very much like congestion area 1 except at the top of a swing. Again once you realise that the price action is contained in between the swing you know there will be no significant changes of direction until either the high or low points of the swing are broken. In this case the higher low is broken to the downside and price also breaks a support line so we have a possible change in trend direction. This should give a few opportunities for trades to the short side. I hope this helps some of you.

tb sounds like your near zions church rd

Ya know...............you're right!!!!

Very

hey dave what you got there is correct but if the market gives us a counter trend pattern to go short from one of those s and r line thats ok also the rules are rather simple find the trend wait for a pullback find the setup bar enter trade manage trade make money

Well Div. and the rest of the gang, have a pleasant evening and we'll have a go at it again, tomorrow.................

See ya'll again during NY session.

Hi DIV...

That sounds good to me. Had a few good trades on Tuesday but not sure I followed all the rules but I think I have the concept down.

Here is an AUD short trade from Tuesday. We had divergence and a 123 set up but I missed that. I took the first pullback and got 15 pips. This is also a corrective move and corrective moves are typically 3 waves.

Hi Dave
It is good that you had a win on that pullback, but my understanding is that entry should be 1 pip below the low of the setup bar.
Regards
Barry

EU Jumps out with my first trade today. In @ 1.44865.