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  • #4,201
  • May 4, 2011 9:59am May 4, 2011 9:59am
Quoting patient pip
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 :-)
Here is one I took on the GU.

The yellow numbers are the first 123. The orange numbers are the second 123. you notice the yellow 3 forms the 1 (orange) of the next 123. It triggered there. But you will notice it actually formed another 123 and then ran downhill. you would not have been stopped out on the orange 123 had you entered there or waited for the final 123. I actually entered on the 3rd 123 because I was not at my computer when the first 2 had formed.

On the video Divergence shows a couple of other examples as well.
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  • #4,202
  • May 4, 2011 10:04am May 4, 2011 10:04am
Quoting Toothman
Did you guys get this one? Divergence 123. Opps, setup candle too long. Got away with one.
I took it for +28 pips, my entry was right at 1.4905 where I drew the horizontal S/R line (the "2" point). I was going to set a TP for near the middle of the daily range for +50 pips but chickened out when I saw the +28 was going to cover some mistakes I made earlier in the week.
  • #4,203
  • May 4, 2011 10:09am May 4, 2011 10:09am
Here is a 123 I took this morning.

The yellow numbers are the 3 peaks I labeled for the uptrend. The orange numbers are the 123 that formed. Notice this trade had 3 peaks and pretty strong divergence on the RSI. Yes, we don't use it to filter out trades necessarily but I still use it to confirm trades. This confirmed a lot for me. Also, the SUB was 20.8 pips. It broke the "tweak" rules by 0.8 pips. I took it because the price action was breaking through the 4900 support level. Too much evidence for me to not take this trade.

Remember, Divergence never said that the old rules don't apply or no longer work. So, with my understanding of the system, this trade was an "Angelina Jolie." The "tweak" system is just that. It does not say you CANNOT use the other rules or use your knowledge to make decisions.

concerns, comments, questions?

RCWSO
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  • #4,204
  • May 4, 2011 10:18am May 4, 2011 10:18am
Quoting Rcwso
Here is a 123 I took this morning....
on my chart the sub was more than 2.4 pips from Point 2 so it was a no trade
  • #4,205
  • May 4, 2011 10:22am May 4, 2011 10:22am
Quoting billm
on my chart the sub was more than 2.4 pips from Point 2 so it was a no trade
Really, my sub was touching the sma. sub is the large down white candle on my chart.
  • #4,206
  • May 4, 2011 10:25am May 4, 2011 10:25am
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 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. Now lets go make some money

http://www.forexfactory.com/showpost.php?p=4540065&postcount=31 76
  • #4,207
  • May 4, 2011 10:28am May 4, 2011 10:28am
Quoting billm
this question has come up way[size=1] to...
ok. so what is your question or is this just to repost? are you questioning my sub? Just wondering.
  • #4,208
  • May 4, 2011 10:30am May 4, 2011 10:30am
I don't have a question. You asked for comments. All I am saying is that according to the rules posted by DIV on that link, the setup bar must be within 2.4 pips of Point 2.

On my chart it wasn't so it was a no trade for me
  • #4,209
  • May 4, 2011 10:33am May 4, 2011 10:33am
Quoting billm
I don't have a question. You asked for comments. All I am saying is that according to the rules posted by DIV on that link, the setup bar must be within 2.4 pips of Point 2.

On my chart it wasn't so it was a no trade for me
Copy all. thanks. Totally makes sense and is true. some charts look a bit different than others due to broker differences. If it doesn't meet the rules, it doesn't meet the rules.

Thanks for the response. Just wanted to make sure we were on the same page and I wasn't missing something important on my chart. And just happened to get lucky.

Always learning.
  • #4,210
  • May 4, 2011 10:37am May 4, 2011 10:37am
Quoting billm
on my chart the sub was more than 2.4 pips from Point 2 so it was a no trade
You are correct but I find other factors come in to play when trading with real money especially when the market is moving quickly. I am still slow doing the caluations and at the moment I am focusing on getting the size of my trades to be the same %

I took the same trade setup and it looked like the setup bar was close to point 2. I do not have an indicator for that so I rely on eye sight only. LOL

Anyway I am glad that that trade worked out. Ray
  • #4,211
  • May 4, 2011 10:38am May 4, 2011 10:38am
the 123 e u setup bar was 21 pips to big otherwise great setup rc the answer to Your pm is yes to all
  • #4,212
  • May 4, 2011 10:45am May 4, 2011 10:45am
Quoting Divergence
the 123 e u setup bar was 21 pips to big otherwise great setup rc the answer to Your pm is yes to all
100% agree with the large candle (greater than 20 pips). I saw too many other factors that added up to a good trade, so I took it.

Was I correct in saying below that the "tweak" you made does not nullify or negate the original system and rules? That system is still valid as far as rules are concerned. We are just now trading the "tweak" method instead. That is why I got into that trade. As far as my understanding is concerned you have never stated that the other method no longer works and that the rules are no longer valid. Correct?

Thanks for the response. I will finish the PDFs this week and post.
  • #4,213
  • May 4, 2011 10:50am May 4, 2011 10:50am
Quoting Divergence
the 123 e u setup bar was 21 pips to big otherwise great setup rc the answer to Your pm is yes to all
It appears my interpretation of the "within 2.4 pips of Point 2 " rule is incorrect as I made the low of the sub 6.8 pips from point 2.

so nice trade guys
  • #4,214
  • May 4, 2011 10:55am May 4, 2011 10:55am
if we put stop at pt 3 its still to big the setup is still golden i am a rule follower 100% which to some it might be to rigid but if i have a loss and follow rules i can live with that
  • #4,215
  • May 4, 2011 11:09am May 4, 2011 11:09am
Quoting Divergence
if we put stop at pt 3 its still to big the setup is still golden i am a rule follower 100% which to some it might be to rigid but if i have a loss and follow rules i can live with that
Div, I agree. I will not mix systems or thoughts on your thread. I will only discuss the true, 100% "tweak" trades from here on out on your thread. I don't want to mix apples and oranges to make lemonade for someone.

This thread has been awesome to keep it to the point and true to you words. Apologies for making lemonade this morning.

RCWSO
  • #4,216
  • May 4, 2011 11:16am May 4, 2011 11:16am
just trying to instill in all the importance
of following a plan no matter what venue it might be plan the trade then trade the plan
  • #4,217
  • May 4, 2011 11:17am May 4, 2011 11:17am
Quoting billm
It appears my interpretation of the "within 2.4 pips of Point 2 " rule is incorrect as I made the low of the sub 6.8 pips from point 2.

so nice trade guys
Your interpreatation is correct. For me I needed to place a number of different size orders/units (My live account is with oanda) to get the % correct. I just checked and found out that there are a number of pips between the orders. Just shows how fast price was moving at that time.

In the heat of the battle I am just glad that price kept moving in my direction.
  • #4,218
  • May 4, 2011 1:28pm May 4, 2011 1:28pm
Quoting Rcwso
Here is a 123 I took this morning....

all cool,,,thx for reviewing it RCWSO,,happy trading
making money in JimB2468 trading room
  • #4,219
  • May 4, 2011 6:58pm May 4, 2011 6:58pm
Hi FTTr'ers. Attempting to trade from the comfort of Panera Bread in Council Bluffs, IA. on my 13" MacBook. Actually with this method, being fairly simple, I think it can be done.

Put on EJ trade, just after Tokyo open, and settled for BE. Had I realized this was a BOJ holiday, Probably would have taken 6 pips or so.

Getting internet to our place sounded simple 2 weeks ago. Not so though. Maybe another week before that happens. It some ways it's like being in a time warp. The main issue is merger upon merger of local media vendors and no one really has the plans for the infrastructure.

EJ maybe getting ready to move. Back to biz.
  • #4,220
  • May 5, 2011 3:23am May 5, 2011 3:23am
123 on GU
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