Flag trading the trend

Hi California

Just read a couple of your past posts and you're absolutely spot on with your identifying "strong trends" to trade with this system. You mention a couple of MAs that you use for this purpose. Couldn't agree more, the actual number is an individual choice. I use 100lwma's because they are very reactive plus my TTindy measures the gradient of the slope to gauge the strength of the trend as I'm only interested in trading strong trenders....

Just to illustrate this point just have a look at this chart below at the end of the day last Friday so my TTindy reading is current and you can see GBPCAD is top and the chart looks very tradable too...

Have a look at the CCI signal I've marked with a yellow vertical line, see how it signals way before price actually falls. Its a leading indicator in my opinion so I could of placed my pending order below the first red candle after the CCI signals for an awesome entry and about a 5 pip stop. The trade runs about 50 pips so not too bad an RR of 1:10...

Theres another trade about 10 minutes later as marked and this one was a 10 pip stop and a 40 pip winner.

My currency strength meter is also confirming the trade with CAD top and GBP second to bottom.

Now I'm not saying I would of traded this as its the wrong time of day but it does illustrate how effective my TTindy can be...By the way have a look to the left and you can see similar setups as price goes up the page with the 100lwma sloping steeply up and the CCI oversold signals..



bottom line find a strong trending pair and trade the flags....

All good stuff, Clive. Thanks.

Hopefully some people looking for "the right system" will come across this and put it to use.

Excellent Work Clive... and hello California. Have heard from the likes of you two for a couple of years.

Harold (Divergence; aka: fx pivots) is now only trading Oil & possibly Gold. Both on futures charts. +

I'm over on your ABCD thread now Clive. Looks like you went through quite an ordeal with your father (a superb role model) passing. I loved the note he gave you. Truly inspirational. You are quite fortunate to have had him as an integral part of your life.

Darryl

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Darryl, right at the moment that I realized it was int'g that two former Divergence thread followers are both now also on the ABCD thread, I see your post mentioning my name.

Thanks for the update on Harold. I think it is a natural for Harold to move over to futures. The reason is b/c trading M5 in both NYO and TO like Harold was doing is not only less effective (b/c you are not trading the most active period of the fx mkt, LO) but also more time-consuming in terms of screentime each day. This is why I moved over to crude oil and the S&Ps using a tick chart. For me, the time expended is 5 a.m. to 7:30 or 8 a.m. Pacific Time. Compare that to LO which is midnight to 2 a.m. So I am using fx for the bigger TFs (H4 and D1).

It is good seeing you here.

<p>Yo i use 13 tick range bars on crude a nice way to see trend from 830 to 11am est.i get my 2 everyday

Harold

I'll have to see what that looks like. On crude, I use a 250 tick and a 750 tick to confirm. Which indicator(s) do you use, or is it just the range bars and PA?

I use the macd/heinken indicator. it measures strength and direction longs are done when indicator is going up and we get a pullback and heiken gives red dot while candle is blue opposite for shorts. I look to get 10 ticks with 10 tick stop win rate close to 80% I get 2 of these almost everyday trading 4 contacts not a bad return

even today during holiday

Hi Harold. Looked for macd/heinken on mt4 and unable to locate. Any clues?

Its on sierra charts

can you spot the 4 trades via the pullback using strength indicator

Divergence: Thank you for providing the three screen shots yesterday. Very happy to see you trading crude at a much better time of day + less screen time. I see more trades than just four in the following screenshot. Which ones are not valid setups?

kinda got it California. what I do is look at strength indicator and if its going up I wait for pb and when I get an up candle and a red dot while indy is going up I wait till it breaks high on my 13 range bar chart then set limit to buy 2 ticks below the high. example on first long high was 18 so when price hit 19 I have order to enter at 16 target 12 stop 10. I also will reenter if order gets hit and takes me out but doesn't make a new low or high. getting 12 ticks might not seem like a lot but trading 3 or 4 contracts yields a lot of money trades last less than 5 minutes I look for 2 a day rack em up boys

Flags are just the pullback in a trend find them get confirmation and trade em this is a simple way of finding them

Divergence

So you are looking at the indicator making a trend -- not price making a trend -- and then trading the flags in that indicator's trend using a divergence in dot/price?

When you say the "high on my 13 range bar chart" and "First long high was 18" do you mean the high of the signal bar?

Yes and yes. First trade overall trend was down then price pulled back but stopped and indy was still going up. Interesting you called it divergence but in a way it is based on new strength and heikem ashi dot was opposite of real trigger bar

Harold, thank you so much for sharing this. I pm'ed you.

Got it and responded

California I sent you an email

As usual, good stuff Harold..