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Flag trading the trend

  • #3,801
  • Edited 8:14pm Apr 20, 2011 7:52pm | Edited 8:14pm
Quoting Divergence
nothing defined no setUPS off s&r levels
Mr. Div, would you say every one of your 20 or so trades per month are setups in confluence with S/R levels or do you take some retrace setups in the middle of nowhere during an obvious trend? Thanks.
  • #3,802
  • Apr 20, 2011 7:58pm Apr 20, 2011 7:58pm
when i get divergence to protect from it being false divergence i want to see a 123 form 90% of the time it does and forms a 5 wave pattern the other 10% it either goes up 30-40 pips or its a false divergence
  • #3,803
  • Apr 20, 2011 8:18pm Apr 20, 2011 8:18pm
in a trend i trade pullbacks usually they concur with those levels
  • #3,804
  • Apr 20, 2011 9:43pm Apr 20, 2011 9:43pm
Quoting tradeit007
I find p4 of Flag The Trend Trading.pdf a good summary of the method.
Is there something in it you find confusing ?
Quoting Kia Ora
Hello and my pennies worth is that having read the thread, you're blessed with the fact that RCWSO has spent a large amount of time in compiling the, 'Flag the Trend Trading Rules!' To refresh your memory, refer to post #2156, page 144. Print it out and study it avidly! Another suggestion is to read Babypips.com through. In amongst that, you'll find the, 'Divergence Cheat Sheet.' Print that also. Once printed, you've got a reference to look through. The thread instigator is, 'Divergence' and, keep in touch with following the thread where you may...
Thanks guys, I'll definitely read that Babypips page on divergence.

As for the PDF, I'm giving it a real good read, and trying to clear my mind to try grasp the method.


Here's my attempt at spotting a trade, can anybody tell me if this is a valid trade?

A.) Uptrend
B.) Pullback to 10 SMA
C.) CCI over 50
D.) Go long after price surpasses SUB high by 1 pip.

http://img199.imageshack.us/img199/8...agtrade.th.png

White line = entry point
Green line = target profit
Red line = stop loss

I would of entered on the candle after the SUB candle, right? Given that said candle has a CCI over 50 and surpasses the SUB high 1 pip.


Please give me your opinions on my trade, and tell me if you see anything wrong with it.

Thanks guys, really want to master this method.
  • #3,805
  • Apr 20, 2011 10:22pm Apr 20, 2011 10:22pm
http://a.abcnews.com/images/Politics..._080228_ms.jpg
  • #3,806
  • Apr 20, 2011 11:33pm Apr 20, 2011 11:33pm
Quoting tas0s
Thanks guys, I'll definitely read that Babypips page on divergence.

As for the PDF, I'm giving it a real good read, and trying to clear my mind to try grasp the method.


Here's my attempt at spotting a trade, can anybody tell me if this is a valid trade?

A.) Uptrend
B.) Pullback to 10 SMA
C.) CCI over 50
D.) Go long after price surpasses SUB high by 1 pip.

http://img199.imageshack.us/img199/8...agtrade.th.png

White line = entry point
Green line = target...

I don't see a problem with it - although the SUB bar doesn't usually mark the bottom/top of previous swing. Add spread to distance from previous swing and that is your profit target. Move stop to BE when 5 pips from profit target - then get ready to exit on a bounce of price near profit target so that you exit with some profit if price looks like reversing.

Nice and simple method. The difficulty doesn't lie in the setup as much as it lies in waiting for the right market cycle to trade in.
Enter Signature
  • #3,807
  • Edited 1:11am Apr 21, 2011 12:24am | Edited 1:11am
took that guy ;-) pity i was on tech testing demo with it..
Attached Image (click to enlarge)
Click to Enlarge Name: eu.png Size: 38 KB
:-anything
  • #3,808
  • Apr 21, 2011 1:13am Apr 21, 2011 1:13am
Div, firstly i want you to know i was never religious persay, however, i consider you to be 'God'... You have no idea how many people have been messing around, some for years without ever really making any headway and now its like a breathe of fresh air. We can all see that it is possible to make low risk/high probability trades and therefore start to increase the stake sizes as our account balances start to grow!


Can you have a quick look at this chart and advise me please?! I saw a nice set up this morning (GMT time) on the USD/JPY, but entered late as i was not sure about this particular entry...
Firstly trend was down... we then had a trigger bar when CCI dropped below -50 and visually stuck its head below the pullback trendline, however the next candle did not confirm by going a pip lower and also retraced within the CCI channel. The next candle (which i understand is your last chance) did confirm and went on to be a winner (albeit i jumped in late)
Is it within rules for the second candle not to have to remain below -50 and therefore this was a justified trade (for next time) or was this just luck?

Many thanks again,

regards and best wishes

TCG


http://i464.photobucket.com/albums/r...k72/advise.png
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
  • #3,809
  • Apr 21, 2011 1:13am Apr 21, 2011 1:13am
Quoting tritom
took that guy ;-) pity i was on tech testing demo with it..
is this MT4 ?

if yes...can you please share template ?

thanks in advance
  • #3,810
  • Apr 21, 2011 1:59am Apr 21, 2011 1:59am
Hi Cableguy
While you are waiting on a reply from our illustrious leader, go back to page 20 post 701, this may answer your inquiry.
Regards
Barry
  • #3,811
  • Apr 21, 2011 2:24am Apr 21, 2011 2:24am
Quoting bradu
is this MT4 ?

if yes...can you please share template ?

thanks in advance
see my post #3793
:-anything
  • #3,812
  • Apr 21, 2011 2:26am Apr 21, 2011 2:26am
ok, thanks

i`ll wait for the release then
  • #3,813
  • Apr 21, 2011 2:44am Apr 21, 2011 2:44am
Quoting gimmie3pips
winner, winner, chicken dinner! ...who else took that 0325 trade of the EU?
hit my TP +21 pips..
Hi, I'm new here and trying to learn this method.

That trade on EU just now, I saw major divergence so was thinking short rather than long. Did you not see the divergence?

Thanks
  • #3,814
  • Apr 21, 2011 2:44am Apr 21, 2011 2:44am
Quoting gimmie3pips
winner, winner, chicken dinner! ...who else took that 0325 trade of the EU?
hit my TP +21 pips..
Did not get a set up bar until next bar and did not take that as it was 31 pips away from last swing. Glad you had a winning trade. Ray
PS I think I was looking at the wrong setup bar for 0325 I am not sure which bar you are refering to.
  • #3,815
  • Apr 21, 2011 2:51am Apr 21, 2011 2:51am
Quoting gimmie3pips
winner, winner, chicken dinner! ...who else took that 0325 trade of the EU?
hit my TP +21 pips..
wise man once say

Read the rules over and over until you fully understand them..... and then read them some more!
This system works as it is and will make you alot of money if you master it. Master it as it is before you try to change or add anything.

Bonsaiiiii!
  • #3,816
  • Apr 21, 2011 3:11am Apr 21, 2011 3:11am
Quoting gimmie3pips
Ok this is what I took, if it was wrong then I dont know where it was wrong.
CCI was +50, price came up through the sma and closed at 46119. I entered at 4614, wanted 12 but that didnt happen. My sl was just below support and the last swing low which was 4596. my profit target was 18 pips plus 3 for the spread so 21 pips which was exit at 4635
What was your setup bar n was it +50 CCI after it closed?
  • #3,817
  • Apr 21, 2011 3:22am Apr 21, 2011 3:22am
ok see the tweezer bottom candles, the next candle to the right which comes up and passes right through the sma, that was my sub. CCi was way over 50 when that closed..at least on my indicator it was..if you go straight down from that candle you'll see it. The 3 thin blue lines on my cci are, from top down +50, 0 , -50

I guess it wasnt a valid setup, no idea why though
  • #3,818
  • Apr 21, 2011 3:25am Apr 21, 2011 3:25am
Hi Gimmie
The setup bar high was 1.46278, trigger next candle at 1 pip above
  • #3,819
  • Apr 21, 2011 3:28am Apr 21, 2011 3:28am
Quoting gimmie3pips
ok see the tweezer bottom candles, the next candle to the right which comes up and passes right through the sma, that was my sub. CCi was way over 50 when that closed..at least on my indicator it was..if you go straight down from that candle you'll see it. The 3 thin blue lines on my cci are, from top down +50, 0 , -50

I guess it wasnt a valid setup, no idea why though
are you SURE about that...
Attached Image
  • #3,820
  • Apr 21, 2011 3:34am Apr 21, 2011 3:34am
ok, back up a second..cause obviously here is where i'm missing something.
according to how I was understanding the sub it had to be "Uptrend-Cross 10 SMA" and i took that to mean the sub had to be a candle either cutting right through of above the sma and if it was above the low must be within 2.4pips of the sma.

The reason i used the candle that I did as my sub was because it was bullish opened below and closed above the sma, so it cut right through from low to high.

So in actuality the way it is supposed to be is that the setup bar candle has to be above the sma as in the one that was after the one i was using?

and i was looking at the wrong damn cci bar?


ahhh f it I give up
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