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Flag trading the trend

  • #4,321
  • May 10, 2011 8:05pm May 10, 2011 8:05pm
Quoting BigRatt
Thank for your response. So it takes a higher low and a higher high as the last swing. This makes sense. I have one more question, can u explain this elliot wave thing to me? I read it takes 3 higher lows and 2 higher highs for example, to complete a wave. I dont understand what that means, i assume if you have those as the minimum number of highs and lows in a trend plus divergence, CCI above or below 50, and price back across the SMA is counted as a counter trend change. I dont know, i need some clarrification there. I like this method...
Elliot Wave is highly subjective and can take a very long time to master. There are 950,000 search results on Google, give it a shot. Good luck!
  • #4,322
  • May 10, 2011 11:49pm May 10, 2011 11:49pm
Quoting BigRatt
Thank You for the response. I understand the first paragraph. Do u count a swing high as a lower low and lower high?
No.....I have not done well with wave counts. I stick to the basics HH, HL or LH, LL... Simplifies my trading. For the 123 set up I look for an extended trend and divergence before taking the trade. Again, keeping it simple. I believe this is the essense of what Div is teaching ( if someone feels I am incorrect feel free to jump in )

As stated in another post, EW can take sometime to master and can be very subjective.

Trading should be kept simple. This method does that very well.
  • #4,323
  • May 11, 2011 6:00am May 11, 2011 6:00am
Anyone looking at GU potential long of off old support @ 16467ish? Not sure if the 5m wave count could be overdone making a long iffy.
  • #4,324
  • May 11, 2011 6:27am May 11, 2011 6:27am
Quoting diamonddbw
Anyone looking at GU potential long of off old support @ 16467ish? Not sure if the 5m wave count could be overdone making a long iffy.
++++++++++++++++++++++

Glad the long never set up. Looks like the short would have been the ticket. Didn't take it though.
  • #4,325
  • May 11, 2011 6:37am May 11, 2011 6:37am
Quoting diamonddbw
++++++++++++++++++++++

Glad the long never set up. Looks like the short would have been the ticket. Didn't take it though.
Yes I was watching the GU then took the short on EU for +11
  • #4,326
  • May 11, 2011 6:39am May 11, 2011 6:39am
Just took an EU short, (highlighted by the ellipse)

was a bit worried that it might not have steam, but as you can see the price continued downwards after i took my profit - but rules are rules
Attached Image (click to enlarge)
Click to Enlarge Name: eu1.gif Size: 28 KB
  • #4,327
  • May 11, 2011 6:43am May 11, 2011 6:43am
Here are the two trades I took this morning.

EU was a flag. yes, I know there were 3 peaks that had formed already but I was looking for the break of the 3rd peak after my entry and watching price action closely. Ready to get out if needed. It broke and was a quick winner.

GU was a 123 for me to the down side. I was waiting for the break of point 2 on my chart and all the correct parameters. That was also a support line and if it went through I believed it would keep going. I only got a few pips because I jumped out early based on the fact that I have to leave the charts and cannot keep watching. Could have gotten a few more pips had I waited 10 more minutes. Oh well. Regardless, I saw it as a 123 and in reality a 123 followed by another 123. Broke point 2/support and there you go.

Have to run for the day. I will check back tonight if anyone has any questions/comments.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EU Flag 11 May.JPG Size: 54 KB
Click to Enlarge Name: GU 123 11 May.JPG Size: 49 KB
  • #4,328
  • May 11, 2011 6:43am May 11, 2011 6:43am
Quoting jmw1970
Just took an EU short, (highlighted by the ellipse)

was a bit worried that it might not have steam, but as you can see the price continued downwards after i took my profit - but rules are rules
+++++++++++++++++++++

You're right about the rules thing. EU definitely in downtrend. It looked to me like it was ready for some kind of retrace. But all is good, you made pips, I didn't loose any.
  • #4,329
  • May 11, 2011 6:43am May 11, 2011 6:43am
would the short@ 13:10, 13:15 on eurusd been a good trade? kickin myself for not taking it. passed on it because it was at a support area .4325ish and after 3 waves.
  • #4,330
  • May 11, 2011 6:50am May 11, 2011 6:50am
Quoting Rcwso
Here are the two trades I took this morning.

EU was a flag. yes, I know there were 3 peaks that had formed already but I was looking for the break of the 3rd peak after my entry and watching price action closely. Ready to get out if needed. It broke and was a quick winner.

GU was a 123 for me to the down side. I was waiting for the break of point 2 on my chart and all the correct parameters. That was also a support line and if it went through I believed it would keep going. I only got a few pips because I jumped out early based on the fact that...
++++++++++++++++++++++++

Yeah RC, saw the double 123's on the GU. Guess I'm doing the chicken dance this morning/afternoon.

I was checking out the dollar too. It was at support, so that was a good marker for pound/euro weakness too. Keep up the good work, I'll be sending you my loan apps!..
  • #4,331
  • May 11, 2011 6:55am May 11, 2011 6:55am
Gap got in the way but a 123 later was ok
Attached Image (click to enlarge)
Click to Enlarge Name: DIVER 22.jpg Size: 98 KB
  • #4,332
  • May 11, 2011 7:00am May 11, 2011 7:00am
can anyone tell me if this is a right long divergence setup? It was a loss but the setup is according to the rules?
Attached Image (click to enlarge)
Click to Enlarge Name: cv1.jpg Size: 170 KB
  • #4,333
  • May 11, 2011 7:01am May 11, 2011 7:01am
Dollar @ Resistance. EU could be trying to set up 123 reversal.
  • #4,334
  • May 11, 2011 7:01am May 11, 2011 7:01am
Quoting Rcwso
Here are the two trades I took this morning.

EU was a flag....
just saw your post. it answered my question on the eurusd short flagger. nice piece of trading, RC. I guess as long as you are ready to pull the plug if the trade doesnt follow thru that it was worth the chance.
  • #4,335
  • May 11, 2011 7:08am May 11, 2011 7:08am
Quoting diamonddbw
Dollar @ Resistance. EU could be trying to set up 123 reversal.
Yes D, UJ is looking like a 123 off previous s/r line also
  • #4,336
  • May 11, 2011 7:44am May 11, 2011 7:44am
Nice day today..! lovely pullback on eu , lovely trend ..! Enjoy your trade and make money succesfull traders...!!!
" Support/Resistance is your friend .. and TREND your girlfriend .. "
  • #4,337
  • May 11, 2011 7:48am May 11, 2011 7:48am
EJ & EU positive divergence on both.
  • #4,338
  • May 11, 2011 12:37pm May 11, 2011 12:37pm
Quoting TraderinSD
No.....I have not done well with wave counts. I stick to the basics HH, HL or LH, LL... Simplifies my trading. For the 123 set up I look for an extended trend and divergence before taking the trade. Again, keeping it simple. I believe this is the essense of what Div is teaching ( if someone feels I am incorrect feel free to jump in )

As stated in another post, EW can take sometime to master and can be very subjective.

Trading should be kept simple. This method does that very well.

If that is what works, then i'm all for it being simple. Thanks guys, i'm still reading the manuals but will let u all know if i have any more questions.
  • #4,339
  • May 11, 2011 1:09pm May 11, 2011 1:09pm
what a great flag day it was!!!
  • #4,340
  • May 11, 2011 4:30pm May 11, 2011 4:30pm
Is the GBP forming a 1.2.3 with divergence at 23.:25 GMT?
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