Flag trading the trend | Page 343 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Are you a trend trader or a counter-trend trader? 29 replies

Divergence Flag / Trend Continuation setup 0 replies

1 Min THV Flag Trading 933 replies

Is Grid Trading (combined trend following and counter trend) Profitable? 3 replies

3 CCIs 'Flag' Trading 55 replies

Attachments: Flag trading the trend
Exit Attachments

Flag trading the trend

  • #6,841
  • Jun 19, 2015 8:23am Jun 19, 2015 8:23am
Quoting erasmus66
{quote} want to have a look at bund myself after i finish crude analysis
Just remember the Bund is a very different animal to CL & take your time to familiarise yourself with it. It used to be VERY liquid and mostly slow moving : tradeable with tiny stops and small targets. It's different now because of ongoing extreme Eurozone crisis : much bigger daily range and more volatile. Apparenty the liquidity (whilst still enormous compared with CL) has reduced because the big players are all very nervous : no-one knows if a Greek default happens if people will get stuck holding something others will not want etc etc

I am still experimenting with different target combinations (t1 from +4 to +13 / t2 from +20 to open). It does hold the possibility - IF one can get there - to trade much larger size. 10 lot is nothing, even a 100 lot is insignificant if you can get your ability, account size and head all in the right place... (I'm a long way off....).

If you prefer US session hours, 30 year bond, ZB (electronic symbol), is even more liquid, but very large tick size $30 or so (quoted in thirty-seconds, so not quite sure what it is exactly). Then you can trade 1000 at a clip without moving the market.

Anyway, I have ordered my Big Boy Pants to trade the Bund in growing size, but they seem to be out of stock .... probably just as well...
  • #6,842
  • Jun 19, 2015 8:31am Jun 19, 2015 8:31am
cheers jt
Become the casino
  • #6,843
  • Jun 19, 2015 8:32am Jun 19, 2015 8:32am
sold at 99
Become the casino
  • #6,844
  • Jun 19, 2015 8:48am Jun 19, 2015 8:48am
jt I have added the zb to my collection and though its 31.. a tick I use a 4 tick range bar with a 6 tick stop and 12 tick target so risk is same also when this thing trends it trends the whole day so looking for pbs is the key. I have noticed that in that trend waiting 10 buy or sell on the pb 10 tick pbs seem to be the sweet spot
  • #6,845
  • Jun 19, 2015 9:14am Jun 19, 2015 9:14am
Having started jabbering away on this wet Friday afternoon, I will add a comment or two more about why I set up & posted that line chart.

There is one entry method I have always wanted to use - it seems very professional, but I have never had the confidence to use it consistently : identifying SR then - if price has broken support and is heading back up to it - selling the support now turned resistance with a waiting Limit order. This allows great RR as you can use a very tight stop, because if the "new" resistance doesn't resist, you want to be out.

The "safer" way of doing this is to wait until the new resistance level is clearly rejected, but the handful of traders I know who trade this way successfully actually place their Limit order in advance & will use, say, a 6 tick stop even with an instrument as volatile as CL. I think you could use a 3 tick stop with the Bund. Obviously it all hinges in correctly identifying the price level - floor traders do this using order flow, not charts.

Harold's posted a lot of examples on this thread, especially when he has used a line chart.... & I don't think HA or any other indicator is needed. Just well drawn trend lines and/or horizontal lines.

Just some thoughts for the weekend...
  • #6,846
  • Jun 19, 2015 9:18am Jun 19, 2015 9:18am
Quoting Divergence
jt I have added the zb to my collection and though its 31.. a tick I use a 4 tick range bar with a 6 tick stop and 12 tick target so risk is same also when this thing trends it trends the whole day so looking for pbs is the key. I have noticed that in that trend waiting 10 buy or sell on the pb 10 tick pbs seem to be the sweet spot
H - this guy says some interesting things specifically about ZB and FGBL (I don't know him or his software, but there's some good stuff for "ideas") : https://tradingthetape.com/

The question is : how to see clearly on a chart what a pit trader sees in order flow ?

Offscreen for now....
  • #6,847
  • Jun 19, 2015 9:20am Jun 19, 2015 9:20am
been using the line chart for awhile. I did add the macd in so I would be on right side of market more times than not. a lot of those pb to support turning resistance give you the double which almost guarentees you will hit target but not today unfortanatly
  • #6,848
  • Jun 19, 2015 9:23am Jun 19, 2015 9:23am
Quoting jtrade
{quote} H - this guy says some interesting things specifically about ZB and FGBL (I don't know him or his software, but there's some good stuff for "ideas") : https://tradingthetape.com/ The question is : how to see clearly on a chart what a pit trader sees in order flow ? Offscreen for now....
I have examined that website and to be honest with you I don't get it either. if it were so easy the world wouldn't be in debt and everyone is rich
  • #6,849
  • Edited 9:39am Jun 19, 2015 9:25am | Edited 9:39am
concerning the zb trend up high was 24 a limit to buy 10 ticks back at 14 has been triggered stop is 6 ticks target 12 was just completed for a win trading zb is like watch 2 turtles race but its very controlled and stress free basically risk 180 to make 360
  • #6,850
  • Jun 19, 2015 9:51am Jun 19, 2015 9:51am
again price made high of 151.30 on zb order to buy at 151/20 trade cancel macd crossed down
  • #6,851
  • Jun 19, 2015 10:13am Jun 19, 2015 10:13am
Quoting Divergence
{quote}I have examined that website and to be honest with you I don't get it either. if it were so easy the world wouldn't be in debt and everyone is rich
Agreed - and of course he has something to sell - BUT the essential point is : why trade a volatile, less stable instrument with a 1 lot 20 tick stop and 20 tick target, when you can trade a relatively much more stable, lower margin instrument with, say, a 5 lot & 4 tick risk, with much higher probability (because of smaller target and "readability" of instrument) ?

So it's an interesting question to contemplate...

Cooking family dinner NOW...
  • #6,852
  • Jun 19, 2015 10:20am Jun 19, 2015 10:20am
Quoting jtrade
{quote} Agreed - and of course he has something to sell - BUT the essential point is : why trade a volatile, less stable instrument with a 1 lot 20 tick stop and 20 tick target, when you can trade a relatively much more stable, lower margin instrument with, say, a 5 lot & 4 tick risk, with much higher probability (because of smaller target and "readability" of instrument) ? So it's an interesting question to contemplate... Cooking family dinner NOW...
I agree zb does move slow except around some news events but 98% of the time is very controlled. even crude is volatile at times the areas where we get in can be identified at a very good rate and 20 tick stop seems like the sweet spot just as the pb to enter on zb when its trending seems to be 10. and 40 for a target seems to be the right number also/ put it all together when ever you find a method where you risk 1 to make 2 and your winning pct is above 70% you have found a way to be consistant and accept losses because of the risk 1 to make 2 senario
  • #6,853
  • Jun 22, 2015 9:10am Jun 22, 2015 9:10am
sold at 67
Become the casino
  • #6,854
  • Jun 22, 2015 9:14am Jun 22, 2015 9:14am
on candle chart that was correct on line chart I got in at 83
  • #6,855
  • Jun 22, 2015 9:22am Jun 22, 2015 9:22am
very nice full 40 for you Harold
Become the casino
  • #6,856
  • Jun 22, 2015 10:00am Jun 22, 2015 10:00am
sold at 49
Become the casino
  • #6,857
  • Jun 22, 2015 10:26am Jun 22, 2015 10:26am
49 is not the 2b to short the low of day is until something changes
  • #6,858
  • Jun 22, 2015 10:32am Jun 22, 2015 10:32am
yep that was a mistake
Become the casino
  • #6,859
  • Jun 22, 2015 11:16am Jun 22, 2015 11:16am
Any chance you gentlaman could post a couple screen shots of your trades today in relation to the 18 tick range system. I am assuming that is still being used?
  • #6,860
  • Jun 22, 2015 2:24pm Jun 22, 2015 2:24pm
hey op, here's today's trade:

Attached Image (click to enlarge)
Click to Enlarge Name: Crude22jun15.png Size: 51 KB
Become the casino
1 trader viewing now