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Flag trading the trend

  • #4,141
  • May 2, 2011 2:59pm May 2, 2011 2:59pm
Even without rsi showing divergence 3 peaks up kept me out
  • #4,142
  • May 2, 2011 3:43pm May 2, 2011 3:43pm
The peaks of westminster abbey kept me out today---2 hr queues to get in!
  • #4,143
  • May 2, 2011 4:33pm May 2, 2011 4:33pm
Thx for responses! Three peaks. Actually, I was going into wave 5. I've never had an idea they could be counted within a short move to make any sense. Another piece to the puzzle, thanks Div.
:-anything
  • #4,144
  • May 2, 2011 7:39pm May 2, 2011 7:39pm
I just wanted to thank Div again for all his work. You initially had no intention to prolong your assistance like this - but you have shown incredible patience and skill in teaching so many of us.

After 6 profitable days in a row - i give you my eternal thanks Divergence.
Enter Signature
  • #4,145
  • May 2, 2011 7:49pm May 2, 2011 7:49pm
thanks sayth well a non event tonite patience and disipline again pay off i refuse to enter unless every jot and tittle is crossed
  • #4,146
  • May 2, 2011 7:57pm May 2, 2011 7:57pm
Here are 2 charts showing that near perfect 123 setup 1 long and 1 short when they happen its time to make a deposit
Attached Image(s) (click to enlarge)
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  • #4,147
  • Edited 10:10pm May 2, 2011 9:01pm | Edited 10:10pm
Part 2 of Webinar 5
http://vimeo.com/23177543
(Assisting Diamond, while he is away.)
  • #4,148
  • May 2, 2011 9:18pm May 2, 2011 9:18pm
This was a very good trade for me, 2 cases of support turned into resistance with a lower low and a classic flag trade
Attached Image (click to enlarge)
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  • #4,149
  • May 2, 2011 10:06pm May 2, 2011 10:06pm
Quoting silversurfer
This was a very good trade for me, 2 cases of support turned into resistance with a lower low and a classic flag trade
I was after that one but didn't trigger for me, probably different feed, 0.3 pips missed
:-anything
  • #4,150
  • May 2, 2011 10:14pm May 2, 2011 10:14pm
Yo're probably just a tad more analytical than I am ie I sometimes think close enough is good enough when I see a setup like that.
  • #4,151
  • May 2, 2011 10:20pm May 2, 2011 10:20pm
How are people filtering trades with the 123 setups? It seems that there are a lot of 123s that form and with the new tweak not using divergence as a filter as much, what are your thoughts to keep you from taking a bad trade?
  • #4,152
  • May 2, 2011 10:28pm May 2, 2011 10:28pm
It's a good question but for me I still rely on the trend and try and avoid counter trend trades where possible. 123's are everywhere - a bit like when you buy a new car and you seem them everywhere as soon as you start driving it.
  • #4,153
  • May 2, 2011 10:30pm May 2, 2011 10:30pm
Quoting Rcwso
How are people filtering trades with the 123 setups? It seems that there are a lot of 123s that form and with the new tweak not using divergence as a filter as much, what are your thoughts to keep you from taking a bad trade?
I think only those after a possible change of direction signalled by "not a HH / not a HL" should matter.. see Div's charts few posts above. The "not a HH/LL" point should be the 1 of 123. So in fact we shoud not classify the trades as trend or countertrend, we're after 123s forming after a change of direction is signalled by the "not a HH/LL" state.
:-anything
  • #4,154
  • May 2, 2011 10:33pm May 2, 2011 10:33pm
Quoting tritom
I think only those after a possible change of direction signalled by "not a HH / not a HL" should matter.. see Div's charts few posts above. The "not a HH/LL" point should be the 1 of 123.
So, based on that, point 1 will not be the previous HH or LL? Because when using divergence/rsi to signal a 123 previously many times point 1 was the previous HH or LL.

So really you need to wait even longer?
  • #4,155
  • May 2, 2011 10:34pm May 2, 2011 10:34pm
If you look at the EU right now. would that count as a 123? 0255 GMT is point 1, 0310 is point 2 and point 3 may have formed already. So is this a valid 123 to take a setup bar in the down direction?

I understand this is not a trading time, but asking in general.
  • #4,156
  • May 2, 2011 10:43pm May 2, 2011 10:43pm
Quoting Rcwso
If you look at the EU right now. would that count as a 123? 0255 GMT is point 1, 0310 is point 2 and point 3 may have formed already. So is this a valid 123 to take a setup bar in the down direction?

I understand this is not a trading time, but asking in general.
Disregard. It did not form. But is that now a flag for an uptrend trade?
  • #4,157
  • May 2, 2011 11:04pm May 2, 2011 11:04pm
I personally can't see an up trade forming. If the previous high had been lower than the previous high I would have taken a short flag trade
  • #4,158
  • May 2, 2011 11:05pm May 2, 2011 11:05pm
Quoting Rcwso
If you look at the EU right now. would that count as a 123? 0255 GMT is point 1, 0310 is point 2 and point 3 may have formed already. So is this a valid 123 to take a setup bar in the down direction?

I understand this is not a trading time, but asking in general.
Obviously not. But I'm pretty confused now since on the second Div's chart the 1 of 123 actually is the LL. Right now on EU I wouldn't consider to go short; we got a 5 wave move from the very top. So a correction is probably pending or underway, I think the last LH is around 4830 so I would wait for this level to be taken out then wait for pullback to go long or a retest of this level, then continue short. I still have to grasp it and find myself to use the old-fashioned trend principle and significant s/r. The open question to me is: for how many consecutive HHs LLs (uptrend example) should I consider the trend valid? I mean with classic flag trades. Div always mentions the significance of pullbacks to "good" levels, and although he draws a single line now, he always looks back if that level has some valid point (as s/r) in the recent past. Sorry for this confused post but I become confused too as I struggle to get the mechanics, too.
:-anything
  • #4,159
  • May 3, 2011 3:15am May 3, 2011 3:15am
I didn't think the news was out until 15 minutes but the dollar is showing big time strength
  • #4,160
  • May 3, 2011 3:27am May 3, 2011 3:27am
this is my trade for today.

just after london opening, the previous LH was broken during the last night and a nice flag was formed, just in the london opening the downtrend continues.

my sub was at 8:55 and trigger bar at 9:00 oīclock, donīt take care of the tp line, itīs here by default with the script.

after the entry we can se also a bounce in the trend line which confirms the trade is really good.

thx a lot diverdence for this thread and for the excellent webinar friday night, was too late for the europeans but i was very happy to stayed there.

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