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  • #3,501
  • Apr 15, 2011 11:51am Apr 15, 2011 11:51am
Quoting Divergence
first i see no 123 secondly news in 10 minutes
news had already passed, you got your glasses on today
  • #3,502
  • Apr 15, 2011 11:59am Apr 15, 2011 11:59am
your right ray his s u b bar was the news bar but still no 123 to create sub
  • #3,503
  • Apr 15, 2011 12:07pm Apr 15, 2011 12:07pm
was very ugly as i said at the time but was worth a go for me.
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  • #3,504
  • Apr 15, 2011 12:09pm Apr 15, 2011 12:09pm
ok , so I have a question. if you back out to the daily eu chart, it's trading sideways just riding along trying to break the 4519 resistance.

If you zoom into say the 1 hr chart it's trading sideways in a defined channel with about a 100 pip range.

when you move in closer to say the 15 min chart it's trending down right now, as far as I can tell, maybe i'm just looking at it wrong though. as far as establishing the trend, which time frame should we be looking at? obviously trading off the 5 min chart the trades arent held for a long time period so would we be looking at the shorter timeframe (15-30 min)to get the overall trend without all of the noise in the 5 min chart?
Attached Image(s) (click to enlarge)
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  • #3,505
  • Edited 12:38pm Apr 15, 2011 12:22pm | Edited 12:38pm
Quoting d4n
was very ugly as i said at the time but was worth a go for me.
I see now. No wonder I couldn't find your 123 at the time. LOL I thought that it was a 123 which you marked with divergence under it on your first chart. My mistake. Anyway I am glad that it worked out for you. Ray
  • #3,506
  • Apr 15, 2011 3:08pm Apr 15, 2011 3:08pm
Quoting d4n
was very ugly as i said at the time but was worth a go for me.
d4n,
Didn't see you take a loss all week. When will you be taking on clients? When you say the setup was ugly, are you referring to the 2 in your 123 setup not being a new swing high? thanks
  • #3,507
  • Apr 15, 2011 3:47pm Apr 15, 2011 3:47pm
Quoting d4n
it did on my chart.. sub @ 1.55gmt with high of 44235 and next bars high was 44254 ? so took it out by 2 pips?
anyone got different?
ohhh, i think Div is saying that s u b at .55min was more then 2.4pips from point 2
  • #3,508
  • Apr 15, 2011 4:44pm Apr 15, 2011 4:44pm
no that was not a valid 123 thats all i am glad he won though
  • #3,509
  • Apr 15, 2011 4:53pm Apr 15, 2011 4:53pm
Quoting d4n
it did on my chart.. sub @ 1.55gmt with high of 44235 and next bars high was 44254 ? so took it out by 2 pips?
anyone got different?
i got same
  • #3,510
  • Apr 15, 2011 9:24pm Apr 15, 2011 9:24pm
Quoting jmw1970
Hi D4n

post 2355 from Divergence talks about setup bars (although for 123's) where he mentions it must have "mo" (movement) - it is also in the various PDF's kindly written by RCWSO which mentions that the bar must be in direction

This is why I assumed it was a valid rule of the system - apologies if I have misunderstood

Regards
John
Since I wrote the PDF based on rules that were given to us by Divergence, let me clarify what is written on the PDF.

For an Uptrend the PDF says, "must cross the 10 SMA up"
For a Downtrend the PDF says, "must cross the 10 SMA down"

Neither of these statements are meant to indicate a type of candle or direction of the candle. Simply meant to state that they must be above or below the SMA in the appropriate direction.
  • #3,511
  • Edited 9:47pm Apr 15, 2011 9:37pm | Edited 9:47pm
This week I took 9 trades during the times that I can trade on the EU and GU, which vary from day to day.

I had 5 winners and 4 losers. The 5 winners were all easy to see set-ups and trades. Followed the rules with no issues. The 4 losers were due 100% to poor trades on my part by not following the rules or not having valid set-ups.

My account grew a little and I learned a lot this week. I am using different risk % per trade for my own learning. Not 3% per trade right now. I bailed out early on a couple of profitable trades but still took pips to the bank which translated to MONEY.

To be 100% honest, I think that my bad trades were due to trying to OVER TRADE. By forcing signals, "non Angelina Jolie" type trades, and other random set-ups. My goal this next week is to concentrate on the textbook trades. I will see what happens.
  • #3,512
  • Apr 15, 2011 11:17pm Apr 15, 2011 11:17pm
congrats Rc, I've had some winners and some losers this week. The losers were just my own fault for trying to force something that wasnt there or just mistakes like not double checking where I was at between s/r levels and taking a long just under resistance level. Stupid mistakes that could have been avoided had i not spotted a setup and tried to rush into it.

The important thing for me being a beginner is that i'm learning to spot my mistakes and get out of the bad trade before doing too much damage. I sat down and wrote out the rules, step by step and next week I will run through each step before taking a trade.

The reason i was asking about which timeframe to use earlier was because when i was looking at the 5min and i swapped to the 1hr to look at the overall trend, i noticed that the entire downtrend on my 5min chart was actually a pullback from an uptrend in the 1 hr chart. So I wanted to make sure i was basing the trend on the correct information
  • #3,513
  • Apr 15, 2011 11:34pm Apr 15, 2011 11:34pm
Hi Guys

Just to take a look at the longer term PA for the EU. Notice that almost the entire weeks PA ws inside the first swing of the week (L to H red line). If we break to the upside, the trend will resume, if we break to the down side we have a potential longer term change of direction.
Attached Image (click to enlarge)
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  • #3,514
  • Apr 15, 2011 11:53pm Apr 15, 2011 11:53pm
Quoting ozziedave
Hi Guys

Just to take a look at the longer term PA for the EU. Notice that almost the entire weeks PA ws inside the first swing of the week (L to H red line). If we break to the upside, the trend will resume, if we break to the down side we have a potential longer term change of direction.
+++++++++++++++++++++++++++++++++

Should be getting top heavy by now, but that's what I've been saying for weeks now. So disregard this post.
  • #3,515
  • Apr 15, 2011 11:58pm Apr 15, 2011 11:58pm
funny timing Diamond D///I was just watching one of divs webinars and he was talking about "feeling the market"...."sometimes you feel like a nut, sometimes you dont" lol
  • #3,516
  • Apr 16, 2011 4:35am Apr 16, 2011 4:35am
Quoting Toothman
d4n,
Didn't see you take a loss all week. When will you be taking on clients? When you say the setup was ugly, are you referring to the 2 in your 123 setup not being a new swing high? thanks
Hey tooth...
yeah, the 123 just wasnt very clear... for me on a good setup everything needs to be clear and defined as in the one on post 3129.
The one on friday did have its plus ponts as in clear divergence, bounce of s/r etc. just a nasty 123.
you just gotta weigh up the pros and cons of each trade and decide whether to take the risk or not, as a few have metioned if you are still learning the system best to stick to the good looking setups that have no negative points as these have the highest probablity of winning.
  • #3,517
  • Apr 16, 2011 5:47am Apr 16, 2011 5:47am
Guys, I've been trading the same thing with this strategy but with different approach.

I dont wanna be a party ruiner here but If I were you I will not bother to trade the divergence or 123 pattern at all. I will only trade the pullback on a well defined trend and keep repeating the same thing until the day I die or stop trading for good.

The first pullback I see after session open would be my best chance that's where the money usually coming in and it draws your chart on the way, if the first pullback failed then we should look the other way.

There is no perfect entry or exit in trading, there are only ways to increase the probability to win your trade. Even if we have 99% correct entry as our indicator tell us but if the chart itself decide to hit your stop loss then it will hit your stop loss. Nothing can protect you against that. Just accept it. If you lose, you quit and come back another day.

That's all and that's it. If you have a good Money management, then you dont have to win them all to start making money you know.

Just dont make this good strategy become too complicated for yourself.


NG
  • #3,518
  • Apr 16, 2011 6:15am Apr 16, 2011 6:15am
Quoting NiceGuy
Guys, I've been trading the same thing with this strategy but with different approach.

I dont wanna be a party ruiner here but If I were you I will not bother to trade the divergence or 123 pattern at all. I will only trade the pullback on a well defined trend and keep repeating the same thing until the day I die or stop trading for good.

The first pullback I see after session open would be my best chance that's where the money usually coming in and it draws your chart on the way, if the first pullback failed then we should look the other way.

There...
I have to differ with you on this one. I think a well defined div. 123 setup is very reliable especially when the trend is questionable. If current short term trend differs from overall trend, the div.123 setup is all I'm looking for. I took three trades this week, all div.123 setups, all winners.
  • #3,519
  • Apr 16, 2011 6:17am Apr 16, 2011 6:17am
Quoting NiceGuy
Guys, I've been trading the same thing with this strategy but with different approach.

I dont wanna be a party ruiner here but If I were you I will not bother to trade the divergence or 123 pattern at all. I will only trade the pullback on a well defined trend and keep repeating the same thing until the day I die or stop trading for good.

The first pullback I see after session open would be my best chance that's where the money usually coming in and it draws your chart on the way, if the first pullback failed then we should look the other...
Hi Nice Guy,why not trade the div 123 set-up,what is your reason for this,T.
  • #3,520
  • Apr 16, 2011 6:33am Apr 16, 2011 6:33am
Quoting Tedge UK
Hi Nice Guy,why not trade the div 123 set-up,what is your reason for this,T.
Basicly, I dont want to trade against the trend. Why bother?

The divergence and 123 signal is harder to spot than Mr. Div's signal to following the trend. Trying to spot that will make our trading somehow more complicated to do. We only need to have one setup that works 51% of times to start make money in trading. We should stick with signal which is easier for us to spot and repeat the same thing everyday.

There is a reason why Mr Div here did not take too many trades during a month. Please go ask him, why?...

I try to follow the jump or the fall of the market, specially during market open. If there is a jump or a rapid fall that beat the last swing High/Low, I will look for pullback, if I can see it I will enter as it continues. If I win I trade more, If I lose I quit. Sometimes I win, sometimes I lose. But I always try to stay a bit longer (more than my stop loss) whenever I am right. That's all.

But that's just me. Everybody is free to decide how to trade for themselves...

Just my 2 cents...
Dont get bother with this. Please continue on...


NG
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