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Flag trading the trend

  • #4,841
  • Jul 11, 2011 10:38am Jul 11, 2011 10:38am
Your first trade is one I took...I would have liked better confirmation, but took the very weak 123 with my finger on the close button in case it didn't follow through...(it did).Your other one looked right to me...Seniors please correct me if I am wrong.....
  • #4,842
  • Jul 11, 2011 3:34pm Jul 11, 2011 3:34pm
Quoting doman
Was these trades correct?

I am not sure about first one becouse at the moment of entry we was not able to know if it will be some extended pullback or not

the secont trade today looks good for me.

Sorry my english.
++++++++++++++++++++++++++++++++
No problem at all with your english. Thanks for taking the time to learn it.

• The start time for the US session is 30 minutes after the hour you have marked on iSessions indicator.

First Trade:
• I would not have taken the first trade because price had been moving higher from the beginning of the US session. The trend is still down, but with price moving higher, we do not know if it will continue going higher. A good rule of thumb is to wait for the second qualified set up. It is very nice when these work out, but at this point we do not know if the move up is over or not.

Second Trade:
• This trade also, had some problems. Price had just gone sideways for 8 minutes. Sideway PA makes me nervous. I probably would have not taken this trade because of that.
Next, the first SUB did not get a trigger. The second SUB (minute :46), did not qualify because it was 6 pips below the 10 sma. The rule here is "No more than 2.4 pips away from the 10 sma".

I know you have been working hard on the Flag set ups. I am glad these worked out for you. Divergence has some very specific rules we should follow, in order to have the best chance of success.

In case I got something wrong here, please submit a correction.
Thanks,
Darryl
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  • #4,843
  • Jul 12, 2011 2:39am Jul 12, 2011 2:39am
i agree with Darryl, i would not trade both setups...just wait
  • #4,844
  • Jul 12, 2011 8:12am Jul 12, 2011 8:12am
3 trades in 45 min. 2nd one is a BE
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  • #4,845
  • Jul 12, 2011 8:29am Jul 12, 2011 8:29am
Only just caught on to this thread, mate, and now in the process of catching up by doing a lot of reading.
I like this method....almost pure price action, and K.I.S.S. at its finest.
Nice one, Div.

  • #4,846
  • Jul 12, 2011 10:03pm Jul 12, 2011 10:03pm
Quoting vince
3 trades in 45 min. 2nd one is a BE
++++++++++++++++++++++++++++++++
Hi Vince. You've been hanging out here longer than me. Glad to see you're still sticking with it.

I've been staying up, or getting up, for the 1st three hours of the FF/London session too. I saw all of those set ups, and one more 18 minutes after the FF Open. The FF Open trade would have been successful too, but I didn't take it because of all of the consolidation just prior to the set up. I've taken a few trades that looked like that and lost. Although during this session, there were 3 trades with consolidation prior to SUB of which 2 were successful. The one I just mentioned :18 after FF Open. Then 20 minutes later at :38, and your first trade shown on your chart.

The 1st trade you took, I also passed on for the same reason, consolidation. Price had been chopping through the 10 for almost the entire duration of the flag.

Your 3rd trade had retraced 32 pips prior to moving down to the set up. Divergence has said that when price retraces that much he does not take the first set up, because he wants to be certain that the retracement is really over.

The 2nd trade, you have marked, is the only trade I took during the FF/London session. It looked slightly different on my charts but price had managed to remain on one side of the 10 or the other side of it prior to the SUB. I also got a BE on this trade.

I'm always learning on this thread myself, so I appreciate any input, including contradictory opinions.
Darryl
  • #4,847
  • Jul 13, 2011 6:28am Jul 13, 2011 6:28am
does anybody see a problem taking this trade if it materializes on the EUR this morning?

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  • #4,848
  • Jul 13, 2011 6:57am Jul 13, 2011 6:57am
Well I took the trade for a loss. The only thing I think that might have kept me out was the market did not resume the normal heart beat (as Div would say) for very long.

That and the upcoming news at 10am est?

Any comments on why the EUR nose dived?

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  • #4,849
  • Jul 13, 2011 7:27am Jul 13, 2011 7:27am
Quoting thefallguy
Any comments on why the EUR nose dived?
In the worst case is +1 pip, entry from 1.4074.

Guy do you have strong eggs that would sell for 1 minute chart

Happy Trading
  • #4,850
  • Jul 13, 2011 8:17am Jul 13, 2011 8:17am
All that movement and not a single SUB small enough to place a trade. That was pretty frustrating. Its a good thing there is always tomorrow!
  • #4,851
  • Jul 13, 2011 8:24am Jul 13, 2011 8:24am
Quoting diamonddbw
++++++++++++++++++++++++++++++++
Hi Vince. You've been hanging out here longer than me. Glad to see you're still sticking with it.

I've been staying up, or getting up, for the 1st three hours of the FF/London session too. I saw all of those set ups, and one more 18 minutes after the FF Open. The FF Open trade would have been successful too, but I didn't take it because of all of the consolidation just prior to the set up. I've taken a few trades that looked like that and lost. Although during this session, there were 3 trades with consolidation...
Thanks Darryl, i'm still learning too
  • #4,852
  • Jul 13, 2011 8:31am Jul 13, 2011 8:31am
I think there was a sub at 11:09 est. But I find it difficult to set pending orders on 1 min chart
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  • #4,853
  • Jul 13, 2011 8:43am Jul 13, 2011 8:43am
Quoting specracer
All that movement and not a single SUB small enough to place a trade. That was pretty frustrating. Its a good thing there is always tomorrow!


Why did the SUB I posted earlier not qualify?
  • #4,854
  • Jul 13, 2011 8:54am Jul 13, 2011 8:54am
Quoting thefallguy
Well I took the trade for a loss. The only thing I think that might have kept me out was the market did not resume the normal heart beat (as Div would say) for very long.

That and the upcoming news at 10am est?

Any comments on why the EUR nose dived?

Attachment


hi
you had enought time to exit the position at BE or even with small profit,and also 15 mins before a big news event is not a good idea.....the fast drop is big players closing long positions before the news...this is what i think happened....
  • #4,855
  • Jul 13, 2011 9:13am Jul 13, 2011 9:13am
Quoting marian
I think there was a sub at 11:09 est. But I find it difficult to set pending orders on 1 min chart
+++++++++++++++++++
Pending orders are almost impossible on 1 min. Quick eye and quick trigger is best solution.
  • #4,856
  • Jul 13, 2011 9:17am Jul 13, 2011 9:17am
Quoting thefallguy
Well I took the trade for a loss. The only thing I think that might have kept me out was the market did not resume the normal heart beat (as Div would say) for very long.

That and the upcoming news at 10am est?

Any comments on why the EUR nose dived?

Attachment
++++++++++++++++
My take on this trade is that even though the direction did appear to have changed, not everyone was 100% in agreement. The big problem here was much resistance too close to entry.
2¢
  • #4,857
  • Jul 13, 2011 10:12am Jul 13, 2011 10:12am
Quoting diamonddbw
+++++++++++++++++++
Pending orders are almost impossible on 1 min. Quick eye and quick trigger is best solution.
I agree with you. At 1 minute is all too quickly, and requires clear rules and a great experience. 5 Min, in this sense is easier, even for the "Greens".

Happy Trading
  • #4,858
  • Jul 13, 2011 10:39am Jul 13, 2011 10:39am
Yes, I finally decided after weeks of trying to give up on the 1m flag strategy. I'm sure it works in theory, but I have found it too difficult to insure all the ducks are in a row and still post orders in time.

It would help if all the variables for the 1m strategy were written down in a document as they were for the 5m. It seems there are enough little details and qualifiers to make it more troublesome to be sure you're right in the very brief window allowed by a 1m candle.

On top of that, I have found if one looks away from the screen at an inopportune moment a SUB can be very easily missed.

The final straw that broke the camel's back for me was the change over the weekend on my platform (FXCM's Trading Station) to be in compliance with the new, stupid FIFO rules. Setting entry orders is now even more of a hassle to try and set on a 1m chart, everything is slower and more cumbersome.

In any case, went back to the 5m charts today and had three winning flag trades. I make up for the fewer trade opportunities on the 5m charts by charting across 8 currency pairs.

  • #4,859
  • Jul 13, 2011 11:57am Jul 13, 2011 11:57am
The final straw that broke the camel's back for me was the change over the weekend on my platform (FXCM's Trading Station) to be in compliance with the new, stupid FIFO rules. Setting entry orders is now even more of a hassle to try and set on a 1m chart, everything is slower and more cumbersome.

[/quote]
+++++++++++++++
FXCM got me too. I will soon be switching over to Oanda as Divergence has told me about his good experience with them.

I contacted FXCM and pitched a fit. It's companies like them that give idiots a bad name!!! I was in a trade before I realized that I no longer have easy access to my stops & limits. I closed out the trade right away, fortunately in slight profit. Of course it would have been a full winner.

BTW FXCM was removed from my Christmas list.
  • #4,860
  • Jul 13, 2011 12:48pm Jul 13, 2011 12:48pm
Hi Guys,

With respect to the stoploss and take profits, I am using “Visual Order Editor” EA which sets the SL, TP & BE automatically. It also allows you to change them by clicking and dragging the line to where you want.

I thought it might help.

I also have not had nearly as much success with the 1min. chart as I have had on the 5 minute charts. I think I also will changing back over to the 5min. tomorrow.
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