Flag trading the trend

For those that have 5000 or more in their trading acct come over to the dark side and day trade crude futures you'll never regret it

may not be the same, but this is the way I emulate the Divergence concept in my mt4 13 range chart.
the bias is given by Heiken Ashi when it crosses its moving average and the entries in the retracement (difference in color between bar price range and HA)

Interesting you using a 13 sma on main chart

Also drag a macd on it and delete 1 line macd 10 21 16

Divergence, thanks again. I have no interest in using this in forex, as I am using other things. Crude futures, yes, possibly.

after a small back test of the pullback to the sma addition to the standard setup where it went 33 wins out of 36 setups I scrolled back to august when the market was a lot slower and the results were the same so its your call. also though the 13 tick range bar is cool for crude it might be a different number when trading fx pairs which would be a simple examination

Again, I'd only use it for crude. I'd have to hire a programmer to code it for NinjaTrader. Hopefully, some people here might be int'd in it for fx

ok this might be code also try macd bb indicator it might be the same thing. mt4 usable

well first day adding the pullback entry confirmed with indy today. Thank you California for the triggering of my mind to add the sma heres what it looked like today

What is the logic behind the setup? I mean normally momentum precedes price. Here you are trading in the opposite direction as momentum.

where am I trading against momentum please point it out to me. strength indy going up I took longs it was going down I took shorts

Dot (which measures momentum, right?) turns red, price bar is up, and you go long

as I said before dot represents heiken ashi candle on its close the sloping or rising is the macd so if its rising and i get a red ha with an up candle I go long thats with momentum opposite for shorts

heres some more examples

last chart I think I have made the point

what is the indicator where can i download it i use your strategy divergence and it is great

Divergence, superb job of putting it all together. I applaud you heartily. In the past, when people have asked me which threads they should go to, I have told them of three, of which Flag trading the trend has been one. This new one has topped that...it provides a convenient answer to those who ask whatever happened to Divergence

Appreciate to comments california. Methodology always stays the same always looking for better ways to implement the pullback trade setup.This might be the best one yet

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Regarding momentum; What I've seen is momentum after a slow run in one direction (several smaller bars, followed by a quick moving large bar), can easily reverse near it's high. Whereas momentum out of a range might tend to continue. Is the valid or not? I don't know. Just an observation I've made.

@diamonddbw:

Here is the way I look at momentum: If you take a tennis ball and throw it up in the air as hard as you can, the moment the ball leaves your hand you will see that momentum -- or the acceleration or speed of the ball's movement -- is increasing. Two seconds later, momentum of the ball (the speed of its upward movement) peaks -- even though the ball continues to go up. And that is the distinction between trend (direction) and momentum. Two seconds later, the ball reaches a peak in altitude and the trend ends right there as the ball begins to fall.

So in this example, the momentum peaks before the move is exhausted. This is what happens the majority of the time in the markets. Less common is where price reverses direction while momentum is increasing.

Your comment about price continuing to rise after breaking out of a range may actually refer to "trend" continuing and not "momentum." Momentum is the speed of a trend's movement. So, yes, a trend will tend to continue after price clears a range. But momentum may or may not. Usually momentum will peak soon after breakout. But not always, as the recent example of CYBR, the U.S. stock, shows.

Momentum is one of the only true leading indicators of price. Volume is another. And volatility might be considered another.