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Flag trading the trend

  • #3,361
  • Apr 14, 2011 9:04am Apr 14, 2011 9:04am
wave 5 done and div
  • #3,362
  • Apr 14, 2011 9:09am Apr 14, 2011 9:09am
First trade for the day. Lets see how it goes. Good trading all. Ray
  • #3,363
  • Apr 14, 2011 9:10am Apr 14, 2011 9:10am
Quoting Rcwso
This system does not talk about using other timeframes or pinbars, doji etc. That is all personal preference but it is not associated with the standard analysis of this system. If that is something you are using, great, but many are not even looking beyond the 5 min charts as per the discussion from the creator of the thread, Divergence.
I apologize thats why i deleted it. I am also using Divs system for better price on lower time frame.
  • #3,364
  • Edited 9:29am Apr 14, 2011 9:12am | Edited 9:29am
First trade for the day. Lets see how it goes. Good trading all. Ray
Moved stop to BE. Hit TP. I was starting to get worried. That is it for me for today.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.jpg Size: 134 KB
  • #3,365
  • Apr 14, 2011 9:14am Apr 14, 2011 9:14am
Quoting coalvin
I apologize thats why i deleted it. I am also using Divs system for better price on lower time frame.
No problem. I don't want to speak for everyone or hijack the thread, but this thread has done a good job of keeping pure to Divergence's system without throwing in too many variables etc. This is one of the first threads I have seen do that. Most turn into someone modifying the original system to the point no one knows what is going on anymore. That is the only reason why I mentioned that. It was not to be mean or turn you away. No harm or malice intended.

Happy Days.
  • #3,366
  • Apr 14, 2011 9:15am Apr 14, 2011 9:15am
Quoting Divergence
wave 5 done and div
Yes, I took that one, saw the divergence and took my profits. Not to the TP level but I put MONEY in my account and saw the flag/set-up. Success in my book.
  • #3,367
  • Apr 14, 2011 9:21am Apr 14, 2011 9:21am
Here is the 5 M AUD. Just anted to give everyone a heads up on this formation. We've had a corrective wave down and we see the up, down, up, down pattern of a 4th wave (in between the 2 red lines). If this is s true 4th wave we will go down one more wave. So watch for the break of the bottom red line and take the set up if you see one.
Attached Image (click to enlarge)
Click to Enlarge Name: aud 5m 4th wave t5 14.4.11.jpg Size: 175 KB
  • #3,368
  • Apr 14, 2011 9:21am Apr 14, 2011 9:21am
I'm a little confused.....Div said......wave 5 done and div.......I interpret that as look for the 123 now and possibly go short. But people are long...did I miss something? I saw the most recent flag, but it was coming up against resistance and to me it looks like the trend is down.
  • #3,369
  • Apr 14, 2011 9:23am Apr 14, 2011 9:23am
Ditto
Quoting tb62
I'm a little confused.....Div said......wave 5 done and div.......I interpret that as look for the 123 now and possibly go short. But people are long...did I miss something?
  • #3,370
  • Apr 14, 2011 9:24am Apr 14, 2011 9:24am
Hey Merino , where have you been???
  • #3,371
  • Apr 14, 2011 9:27am Apr 14, 2011 9:27am
Quoting Rcwso
Yes, I took that one, saw the divergence and took my profits. Not to the TP level but I put MONEY in my account and saw the flag/set-up. Success in my book.
Ditto here
  • #3,372
  • Apr 14, 2011 9:28am Apr 14, 2011 9:28am
you cant beat trusty old flag trades!

im done for the day.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: gu.gif Size: 27 KB
  • #3,373
  • Apr 14, 2011 9:29am Apr 14, 2011 9:29am
Quoting tb62
I'm a little confused.....Div said......wave 5 done and div.......I interpret that as look for the 123 now and possibly go short. But people are long...did I miss something? I saw the most recent flag, but it was coming up against resistance and to me it looks like the trend is down.
Let me see if I understand and can explain. Bear in mind, I am trying to learn so if I am wrong, I will admit it and retract my statements.

From some of the original posts and videos by Divergence he talks about being careful anytime after you have 3 new peaks or 5 waves. The move may be done for the moment and we wait for a pullback to a point of resistance or support and a new entry signal. 5 waves done does not immediately mean we look for a 123/divergence and go the other way. It may happen but after 5 waves there typically is a period of consolidation/retracement. Not always a trend reversal. So even though as I type this I would have hit my TP level had I stayed in it with caution after 5 waves being complete that we continue on.

Those are my thoughts and understanding.

Issues?
  • #3,374
  • Apr 14, 2011 9:34am Apr 14, 2011 9:34am
Quoting d4n
you cant beat trusty old flag trades!

im done for the day.
Good work. Interesting for me is the fact that the GU trade I was watching my my CCI on that same bar was at 22 and not above 50 for your Set-up bar. I am using the same exact indicator as you but it was no where close to your level. Then the next bar did not meet set-up bar criteria. I stayed out. Hard to understand why some brokers are that much different.
  • #3,375
  • Apr 14, 2011 9:34am Apr 14, 2011 9:34am
Quoting d4n
you cant beat trusty old flag trades!

im done for the day.
If I had known that you also took the trade I would not have been worried at the end. LOL. BTW look at price going up now! I am also now ready to do battle tomorrow. Ray
  • #3,376
  • Apr 14, 2011 9:35am Apr 14, 2011 9:35am
Are you saying you entered long at the opening of the 9:40 am candle 1.4415
Quoting d4n
you cant beat trusty old flag trades!

im done for the day.
  • #3,377
  • Apr 14, 2011 9:40am Apr 14, 2011 9:40am
Quoting Rcwso
Let me see if I understand and can explain....
Yep. To modify an early post: My urge to make money today is stronger than my urge to trade (because I got spanked yesterday).

No shame in taking money off the table.
  • #3,378
  • Apr 14, 2011 9:42am Apr 14, 2011 9:42am
I have a question for Divergence. I am trying to get my head around some Elliot W stuff and one of the rules is that wave 3 can't be less than wave 1 and 5. I seem to have noticed a number of instances where wave 3 is smaller than 1 and 5.

What is your experience and thoughts?
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  • #3,379
  • Apr 14, 2011 9:47am Apr 14, 2011 9:47am
Quoting Sarythsaya
I have a question for Divergence. I am trying to get my head around some Elliot W stuff and one of the rules is that wave 3 can't be less than wave 1 and 5. I seem to have noticed a number of instances where wave 3 is smaller than 1 and 5.

What is your experience and thoughts?
Sorry guys..didn't mean to confuse anyone with my charts. Sarythsaya, don't get hung up on DIV or my 5 wave counts, they are not exact elliott wave counts. I thin DIV and I use them in a similair fashion. Just to give a heads up when the move may be ending. Keep in mind we are on a 5min chart and there are bigger more powerful wave counts at play on the larger time frames. What we want to do is use the waves as a guide. When a wave turly ends you typically see divergence and then a 123 set up. So look for those patterns.
  • #3,380
  • Apr 14, 2011 9:51am Apr 14, 2011 9:51am
Quoting ozziedave
Sorry guys..didn't mean to confuse anyone with my charts. Sarythsaya, don't get hung up on DIV or my 5 wave counts, they are not exact elliott wave counts. I thin DIV and I use them in a similair fashion. Just to give a heads up when the move may be ending. Keep in mind we are on a 5min chart and there are bigger more powerful wave counts at play on the larger time frames. What we want to do is use the waves as a guide. When a wave turly ends you typically see divergence and then a 123 set up. So look for those patterns.

I appreciate the limitations of wave counts on 5 min charts - and although i have in the past avoided Elliot like the plague - i have seen the 5 wave div occur so many times since trading this thread that it appears worthy of further study.
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