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Flag trading the trend

  • #3,421
  • Apr 14, 2011 7:56pm Apr 14, 2011 7:56pm
Quoting Divergence
ok we got 2 different trades first gimme what method is that? enough said there traderd where was the setup bar ? come on guys either follow the plan or start a new thread with your methods lol
yep, sorry div... guess that one was off.
I had the 20:00 candle close at 4495, the ma was 4496, next candle didnt take out the previous low but the very next one did. I kept the stop above the high of 4502 until price hit 90 and then i moved it to break even, next candle popped up long enough to take out my stop and then the price continued south.
  • #3,422
  • Apr 14, 2011 7:57pm Apr 14, 2011 7:57pm
Handyman. Sent PM
  • #3,423
  • Apr 14, 2011 7:57pm Apr 14, 2011 7:57pm
from march 24 till the high at 123 its gone 900 pips its just pull back to 38% so let the market determine current direction and use the s anr and most import the pattern dont forget a pattern to enter into trades there is the flag and the div 123 or 123 without div at END of trend not the middle like some folks are doing
  • #3,424
  • Apr 14, 2011 8:05pm Apr 14, 2011 8:05pm
Interesting the responses one gets on FF. Things that make ya go mmmm ??
  • #3,425
  • Apr 14, 2011 8:08pm Apr 14, 2011 8:08pm
mmmmmmmmmmmmmmmm?
  • #3,426
  • Apr 14, 2011 8:10pm Apr 14, 2011 8:10pm
Will be moving next week, so won't be around much. As you can see I've got everything under control... I wouldn't "steer" you wrong about that.
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  • #3,427
  • Apr 14, 2011 8:12pm Apr 14, 2011 8:12pm
lt looks like joel sold you his car he won
  • #3,428
  • Apr 14, 2011 8:13pm Apr 14, 2011 8:13pm
Quoting Divergence
mmmmmmmmmmmmmmmm?
You have a blessed day .. Thanks for all
  • #3,429
  • Apr 14, 2011 8:24pm Apr 14, 2011 8:24pm
Div Whats the "official" 2.4 pip rule?
Quote
this is a candle that has closed above or below the sma and is either touching the sma or its within 2.4
This is from Div and this is how I have been trading it with dare I say great results.
And this is from the PDF by RCWSO
Quote
the low must be within 2.4 pips
this was for a long trade
I am talking flag trades not 123.

One more thing I see Div is looking at EJ I have been trading EJ during the Asian session for a little while now. Is 2.4 a good number for EJ? Where did that number come from?

Thanks Guys
  • #3,430
  • Apr 14, 2011 8:33pm Apr 14, 2011 8:33pm
yes all rules stay the same
  • #3,431
  • Apr 14, 2011 8:33pm Apr 14, 2011 8:33pm
Quoting shr1k
Div Whats the "official" 2.4 pip rule?

This is from Div and this is how I have been trading it with dare I say great results.
And this is from the PDF by RCWSO

this was for a long trade
I am talking flag trades not 123.

One more thing I see Div is looking at EJ I have been trading EJ during the Asian session for a little while now. Is 2.4 a good number for EJ? Where did that number come from?

Thanks Guys
++++++++++++++++++++++++++++++++
Copied from the thread:
• Definition of setup bar: this is a candle that has closed above or below the sma and is either touching the sma or its within 2.4 pips of the sma and the cci has closed above or below the 50, (if the reading is 50.000 thats fine 49.999 is not fine)

• All setups with the trend trade ,

• Div 123 are the same for the setup bar.

• Also the div 123 the setup bar high or low must be with 2.4 pips of point 2.

Thats it no more discussions about this if you cant comprehend what i just wrote then it might be best if you give up trading for a living because this cant be explained any clearer and we need to move past this, sorry if it seems a little harsh.
++++++++++++++++++++++++++++++++

For a long 123 trade....
We must see divergence (although Div himself will take 123's at the end of a trend without divergence)
We must see a 123
Setup bar must be higher than or within 2.4 pips of point 2 on the 123
Trigger is 1 pip above high of setup bar and must be triggered within the 2 candles after setup

If Divergence occurs while in trade, GET OUT ! ! !
  • #3,432
  • Apr 14, 2011 8:41pm Apr 14, 2011 8:41pm
thank you diamond the 2.4 pip rule is there because of the extra digit or it would be 2 pips this is based that if it breaks momentum will follow we are geting in a tad early to be the rush hour traffic
  • #3,433
  • Apr 14, 2011 8:46pm Apr 14, 2011 8:46pm
Thanks Guys I will stick with whats laid out here
Quote
this question has come up way to many times i will explain this crystal clear for the last time. Definition of setup bar: this is a candle that has closed above or below the sma and is either touching the sma or its within 2.4 pips of the sma and the cci has closed above or below the 50, (if the reading is 50.000 thats fine 49.999 is not fine) all setups with the trend trade , div 123 are the same for the setup bar. Also the div 123 the setup bar high or low must be with 2.4 pips of point 2. Thats it no more discussions about this if you cant comprehend...

People have mentioned how well this thread has stayed on topic and that the strategy has remained unchanged for 200 pages.
Dont fix what aint broke!
That is rare on on any FX forum and speaks to how well this idea works. Thanks for sharing your rules Div.
  • #3,434
  • Apr 14, 2011 8:57pm Apr 14, 2011 8:57pm
Quoting Divergence
been doing a little research to try and get a few more asian trades and i find the eurjpy is a candidate for the job so i will be using it going forword
I think I'll follow that pair along with you big D.
  • #3,435
  • Apr 14, 2011 10:10pm Apr 14, 2011 10:10pm
Here is some EJ action
not sure about the 123 I did win but there was no div on the rsi I could see.
My question is at what point in the flag trade I lost did the 123 become obvious, obvious enough to close out the trade early. What I have been doing is placing the trades with a 1:1 RR and just letting them go win or lose. Sometimes its a good thing sometimes its not. I am on the fence about messing with the trades after they are placed. Any thoughts? How do you guys handle a trade that is starting to look bad?
EDIT>> I can see the 123 entry was to far from the 2 now I am looking at this in hind site. this still isn't automatic for me but I am getting it. I think. the flag set up is something I see better on the charts and is my main thing so far.
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  • #3,436
  • Apr 15, 2011 12:49am Apr 15, 2011 12:49am
Quoting ozziedave
First off, unlike DIV I have to trade around my work schedule so forgive me for not following that rule.

Here is an EU long trade. Notice we have a strong up move and then we get a wave from the top that is in a narrow range that kinda goes up, down, up down. If you want to add another tool to your tool box learn how to recognize these waves. I waited for the break and the small retrace to the 10 SMA and we have a SUB. Very quick +19 pips.

By the way..once this wave is completed, we more than likely will have divergence on the RSI.

One of them waves setting up as we speak.
  • #3,437
  • Apr 15, 2011 12:57am Apr 15, 2011 12:57am
Quoting shr1k
Here is some EJ action
not sure about the 123 I did win but there was no div on the rsi I could see.
My question is at what point in the flag trade I lost did the 123 become obvious, obvious enough to close out the trade early. What I have been doing is placing the trades with a 1:1...
++++++++++++++++++++++++++++++++

A bit of discretion is required here.

• I was following pa here my self. When I saw the 1st sub not get filled (3:10 candle on fxdd), and what would have been the entry candle not be viable because it was too far (4 pips) from the 10 sma, I really lost interest.

• Also pa over the last 2 days has been extremely lethargic and as I saw price drag out with going nowhere, I had no interest of boarding that train.

• Last Point, it's too late for entry. 1st ninety minutes of a/s was done. At that point, in order to maintain process of taking trades with the "Highest Probability", don't enter.

2¢
  • #3,438
  • Apr 15, 2011 1:28am Apr 15, 2011 1:28am
Trip good, Wish you were here...
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  • #3,439
  • Apr 15, 2011 1:29am Apr 15, 2011 1:29am
Any body take that EJ 30 minutes ago?
  • #3,440
  • Apr 15, 2011 1:50am Apr 15, 2011 1:50am
Quoting diamonddbw
Any body take that EJ 30 minutes ago?

yes i did, nice quick trade!

Thanks to all here, lot of information got here to improve my trading!
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