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Flag trading the trend

  • #4,181
  • May 3, 2011 1:57pm May 3, 2011 1:57pm
Can anyone refer me to a document or post that specifically explains everything about identifying and trading 123 patterns? It seems people trade them here as much or more than flag patterns but from what I've seen and heard they seem to be very subjective to the eye.
  • #4,182
  • May 3, 2011 2:03pm May 3, 2011 2:03pm
have u watched the latest webinar? if not, u need to http://www.anymeeting.com/WebConfere...rid=EF52D88481 the key is to always trade with the trend and only take 123s after a move is exhausted and a trend change is coming. we are on a 5m chart, so there are going to be a few trends during the day. the last 2 days havent been a normal market, the webinar goes thru all of april and shows the method div uses for approaching it.
  • #4,183
  • May 3, 2011 3:16pm May 3, 2011 3:16pm
I watched the webinar Live, but that doesn't help; Divs cursor moved so fast the screen wasn't picking it up very well. In any event, I always learn better by reading detailed instructions with illustrations, so I have to time to absorb.

I guess I'll have to look elsewhere...
  • #4,184
  • May 3, 2011 5:36pm May 3, 2011 5:36pm
Quoting Tailgun
I watched the webinar Live, but that doesn't help; Divs cursor moved so fast the screen wasn't picking it up very well. In any event, I always learn better by reading detailed instructions with illustrations, so I have to time to absorb.

I guess I'll have to look elsewhere...
tailgun,
You can do a search on my posts in this thread and find the two pdf's I posted on trading 123 patterns. Look for a 123 reversal pattern after three peaks (as div. says) when divergence is formed. The entry rules then are the same as a flag trade with the added tweek from last webinar.
  • #4,185
  • May 3, 2011 7:40pm May 3, 2011 7:40pm
Quoting Toothman
tailgun,
You can do a search on my posts in this thread and find the two pdf's I posted on trading 123 patterns. Look for a 123 reversal pattern after three peaks (as div. says) when divergence is formed. The entry rules then are the same as a flag trade with the added tweek from last webinar.
Toothman, I tried searching all the attachments in the thread but none of the PDFs I found were from you. I found the flag trading PDFs (which I DL'd before) and a couple Word docs on hidden divergence and a Q&A PDF - but nothing showing from you. Might you repost?
  • #4,186
  • May 3, 2011 7:47pm May 3, 2011 7:47pm
start by only taking 123 when there is divergence on the rsi or when there has been an extended move in one direction, other counter-trend moves arent going to have much momentum. after watching the mkt live for a couple weeks, you'll start to have a feel when a move in the other direction is coming.
  • #4,187
  • May 3, 2011 7:55pm May 3, 2011 7:55pm
Well we got winner on eurjpy after a 123....forgot to mark my s u b..it was at 20:05 est
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  • #4,188
  • May 3, 2011 8:09pm May 3, 2011 8:09pm
tailgun, go to the trading room, there's people in there during london and ny sessions, and they'll be more than happy to help u out as the mkt unfolds
http://chat.efnet.org:9090/ enter a nickname, channel is flagtrading
  • #4,189
  • May 3, 2011 8:31pm May 3, 2011 8:31pm
First, I don't have access to charts right now but I wanted to post an observation that I have noticed and saw during the most recent webinar.

I had 2 trades today that I took that were not just a 123 setup but what i call a double 123. Basically what happened is that a 123 formed, did not execute and then another 123 formed right after it. These triggered and were very good trades. They gave me 10+ pips within 5-10 minutes max. During the most recent video Divergence points a couple of those out. They seem to be very high probability trades/setups. Basically, it seems like price wants to reverse but someone is preventing it for a short period of time and then finally gives in and it goes.

Just an observation about 123 setups and possibly a high probability setup. Just like with divergence showing and a 123 gives you more probability.

Any other thoughts or comments?
  • #4,190
  • May 3, 2011 8:34pm May 3, 2011 8:34pm
Unless anyone objects, Divergence primarily, I plan on leaving the original PDFs on the thread. Not sure I can delete them now anyway.

I plan on trying to make a new one this week, as time allows, with the new rules and trying to show some 123 setups. Give me until this weekend to put them together. Work is busy this week.

If anyone has any objections or issues, let me know.
  • #4,191
  • May 3, 2011 9:01pm May 3, 2011 9:01pm
great observation rc i call them a 123 within a 123. The 123 setup at end of trends whether they are regular or counter when they form and that 1 candle comes down and get to within 2 pips of point 2 and the cci crosses 50 is a very high probability setup just check charts and you will see
  • #4,192
  • May 3, 2011 9:06pm May 3, 2011 9:06pm
Quoting Tailgun
Toothman, I tried searching all the attachments in the thread but none of the PDFs I found were from you. I found the flag trading PDFs (which I DL'd before) and a couple Word docs on hidden divergence and a Q&A PDF - but nothing showing from you. Might you repost?
See post 2119
  • #4,193
  • May 3, 2011 10:20pm May 3, 2011 10:20pm
Yes I've noticed that too....
Quoting Rcwso
First, I don't have access to charts right now but I wanted to post an observation that I have noticed and saw during the most recent webinar.

I had 2 trades today that I took that were not just a 123 setup but what i call a double 123. Basically what happened is that a 123 formed, did not execute and then another 123 formed right after it. These triggered and were very good trades. They gave me 10+ pips within 5-10 minutes max. During the most recent video Divergence points a couple of those out. They seem to be very high probability trades/setups....
  • #4,194
  • May 4, 2011 12:11am May 4, 2011 12:11am
Hi,

I am new here and still learning and looking through this thread. Is there anybody that can explain the "3 peaks" rule?

Kelvin
  • #4,195
  • May 4, 2011 12:21am May 4, 2011 12:21am
Quoting Kelvin2005
Hi,

I am new here and still learning and looking through this thread. Is there anybody that can explain the "3 peaks" rule?

Kelvin

This is not necessarily a "rule." Example, if you are in an uptrend and there are 3 distinct peaks that form, usually from pullbacks, then use caution when entering another trade continuing with the uptrend. This follows some of the Elliot Wave theory with a 5 wave move etc. if there are 3 peaks it has formed 5 waves and the trend may be over. It is a cautionary "rule." Many will not trade beyond that but that doesn't mean there are not winners past it either.
  • #4,196
  • May 4, 2011 1:49am May 4, 2011 1:49am
Quoting tbjohnton
tailgun, go to the trading room, there's people in there during london and ny sessions, and they'll be more than happy to help u out as the mkt unfolds
http://chat.efnet.org:9090/ enter a nickname, channel is flagtrading

Just a minor correction:

Channel is #FlagTrading

I expect the asterix makes a difference though I haven't ever tried to enter the room without it.
Enter Signature
  • #4,197
  • May 4, 2011 2:31am May 4, 2011 2:31am
Quoting Rcwso
Unless anyone objects, Divergence primarily, I plan on leaving the original PDFs on the thread. Not sure I can delete them now anyway.

I plan on trying to make a new one this week, as time allows, with the new rules and trying to show some 123 setups. Give me until this weekend to put them together. Work is busy this week.

If anyone has any objections or issues, let me know.

Hey Rcwso,

Nope no issues, in fact greatly appreciated!

Many thanks!

~Pure
Enter Signature
  • #4,198
  • May 4, 2011 2:48am May 4, 2011 2:48am
Quoting Rcwso
First, I don't have access to charts right now but I wanted to post an observation that I have noticed and saw during the most recent webinar.

I had 2 trades today that I took that were not just a 123 setup but what i call a double 123....

hi Rcwso

however i might think i understand, a picture is worth 1000 words,,if u get a chance would be nice to c it in a print :-)
making money in JimB2468 trading room
  • #4,199
  • May 4, 2011 9:53am May 4, 2011 9:53am
Did you guys get this one? Divergence 123. Opps, setup candle too long. Got away with one.
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  • #4,200
  • Edited 10:14am May 4, 2011 9:54am | Edited 10:14am
First and last trade for today. Worth waiting for the 123, after some divergence, to set up. Good trading to all. Ray
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