Flag trading the trend

Thanks

At the top of the last chart was a valid 123, i had already drawn in the line from the top of the spike before PA got there, anywhere around that angle for me will be either the 123 as suspected or a further flag. PA had completed what appeared to be 5 waves and so we should be on the look out for a reversal and start of a corrective move;

http://i464.photobucket.com/albums/r...72/2min123.png

DIVERGENCE we miss you ....get back here with that view of the markets of yours...
...and Sharpen the Scalper Razor...


http://img683.imageshack.us/img683/1520/scalp.png
By radofx at 2011-09-28

http://savepic.su/43643m.jpg
123 good trand setup + grandfather pattern
Happy Trading

Great Thred... look forward to browsing it..

Again, great system. Thanks again Div.

What pairs do you guys find yourselves trading when using this system?

If you can handle the gain to the loss, the longer time frames can be awesome at predicting where PA will head...

This is a post i made elsewhere over a week ago;

http://i464.photobucket.com/albums/r...ark72/nuts.png


And the update;

http://i464.photobucket.com/albums/r.../4hrupdate.png


For those that don't like such long time scales, its still worth finding these trades and determining the target. Once recognised you can switch to the 5min and look for set-ups in the right direction and get the points banked along the way...

Hello traders!

Nice to see such a good yet simple and straightforward strategy! ))))

I personally trade very similar strategy... You might find it looking for name "The System I (with irony)". Thread's creator is feb2865.

May be you will find something useful for you there...

Good luck in trading!

P.S. As feb2865 always says - "Go with the flow"....

'Morning, CG.

You're right about the higher TF.

... I suppose the attractive young lady is your sister ?

It' a boring session as you can tell...

-----------------------------

Ha ha JT; good morning!
If its my sister, i will be locked up for sure!

Yes agreed; last couple of days has been a bit tight with set-ups... Keep checking all time scales!

'Thought so...

Hi everybody,

I'm writing from Italy and I'm really interested in this thread. I started following all posts/video but I still have some doubts about the strategy.

1) Assuming the 15 mins chart is showing a defined trend (let's suppose an uptrend), do I have to wait for the 1 min chart to show an uptrend as well (this means HH/HL/HH), or as soon as I have a SUB, whichever is the 1 min trend, I can insert a buy stop order?

2) How to cope with the sideways? Quite often, after a trend there is a period of nowhere market, but we know this only LATER, when we will examine our chart. During this period a potential setup could still be in place. How can we filter this? (see picture).

Thanks to Div for his efforts and hope to contribute as soon as I could.

Buonasera.

It's always a good idea to know where you are in a trend and be more careful if there's already been a large swing. Divergence's rules clearly state that on the M1 chart you have to wait for a pullback, so there has to be at least some kind of trend from which to pull back. Drawing flaglines can be very helpful & there have been some great posts and illustrations on this thread recently.

In your chart example, there has already been quite a move down - first reason for caution - and once the consolidation is clear, best to stay flat.

Most important of all, practice LOTS of real-time trades, first sim, then live in very small size.

Good luck !

Hi Eagle

How to cope with the sideways? Quite often, after a trend there is a period of nowhere market, but we know this only LATER, when we will examine our chart. During this period a potential setup could still be in place. How can we filter this? (see picture).

Way back when Div started this thread he would refer to a series of higher lows and higher highs for the up trend.. Lower lows, lower highs for the down trend. This is a look back from where you have come from. Taking a set up in this manner on smaller time frames ( confirming trends with in the higher time frame range market ) will help filter. It is the way I personally trade Div's method.

In range markets on higher time frames you can see the trends in the lower time frames. Like a 60M vs 1M, 2M, 5M. Your R/R and Targets ( if you use ) will need to be adjusted accordingly.

To look at one time frame regarding trending vs range markets can be costly. This method is better suited for trading trend.

Just my 2 cents... Hope this helps

TSD

Hidden divergence and lack of reversal signals, so look for long set-ups.
Here on the 1hr, we have a couple of 100 pointers this week;

http://i464.photobucket.com/albums/r...ark72/1hr4.png

Hey everyone. Great thread. Thanks Div for the terrific method.

I've been struggling with determining the trend on the 15M TF and have come up with a way that makes sense to me. If it helps someone else find their way, all the better.

I'm using a few simple indies, which can be seen on the chart below. The idea was to make it very paint-by-numbers, with a minimum of analysis, since my analytical skills are worse than gawd-awful. I'm not kidding. I'm the greatest top buyer and bottom seller the world has ever seen.

The main one is the colored MA. It's a 21 LWMA. I used a pretty short period because price can whip around rather quickly after the NY open and I want to be on top of it.

The arrows are merely a Stoch cross signal, set to 7,3,1. Again, quickness--even earliness--are the aim with my 15M chart. I wanna know beforehand if shit's gonna happen so I can move to the 1M chart and wait for it.

The diamonds represent higher highs/lower lows. The indi is the ZZ Semaphor, so it will repaint, but that's not an issue. I just want a quick reference for those HH/LL double bottoms/double tops.

That's obviously an RSI(3) in the subwindow. I want the line to be moving down from OB/up from OS to match the PA on the chart. LawGirl's RSI Trend Arrows are at the right edge. It's been modified to show where the reading is at for each time frame. So if the H1 arrow is pointing down and number below it is 65, we know that it just came down from 70, or OB territory, and that we could be in the beginning of an hourly downtrend. The numbers are also color-coded-- self-explanatory once you see them in action.

I don't even look at the 1M chart until there're signals from the 15. So it's pretty low key. Trading just one pair, you have plenty of time see how things are shaping up.

So basically, when the 21MA is, say, green, the ZZ indi is usually the first sign, followed by a Stoch cross, painting an arrow and sounding an alert. A check of the RSI to see if it's in oversold territory is next. The LawGirl indi is not critical, since the local TF is what matters most for quick scalps. If the higher TF readings are also in alignment, an increase in lot size may be in order. Candle shape is a consideration too, i.e., extra emphasis on pinbars, engulfing bars, etc.

If everything looks good, go to the 1M chart and do like Div does.

If anyone's interested, I'll post the indies and a template.

Keeping it simple!
The market can be very kind sometimes! With no trigger candle following a (dubious) SUB, to the long side, we can expect the 123 to play out;

http://i464.photobucket.com/albums/r...72/123rev3.png

Why 2 rather than 1 pip below the 2 point ?

I digress a little, but I feel the Holy Grail of 123 reversals is to take the entry off the reject of the 2 point (Al Brooks' L1/2 & H1/2 formations help here, if you've every heard of Al...). But this is going too far off the topic of this thread to comment further.

Delightful chart, btw

Well tbh JT, i agree and of course its very low risk/reward to short at the top of the SUB that forms point 3 with a stop a pip above once the candle has completed.
In this instance we could still have been building a flag for a further long, so it was nice to have the confirmation of both the ensuing SUB not being followed by a trigger and subsequently the 123 completed. Should have the balls to hit that one heavy!

Kind regards!

Hi, everyone.
Thanks a lot for this great thread.
Could anybody please help me understand about CCI in this system? I find that in most charts in this thread, most signal bars have a CCI >50(uptrend) or <-50(downtrend).
So, I'm guessing: the rule is: when uptrend CCI closes above -50, and when downtrend CCI closes below 50. Is that correct?