Flag trading the trend

long again from 56 recouped the loss

top work

just stay the course follow rules and in the end you will be profitable

looking at price now for e.g. we have hh hl hh(2b setup) if the 67 short comes in is it a legit reversal?

a hat maybe forming at the top

if you want to trade every reversal then yes. I have decided to take only setups to get me back into the days trend or a clear hat ( head and shoulders) formation to go against the trend

so right now we have a 2b and if we get a close up that would be the 123. so if it closes at 82 then 72 which is 1 tick below point 2 would be the entry

so the sequence would be HH HL HH HL but not a HH

yes understood

need another shoulder

yes

so it would be 85 long or 57 short

ok let me explain system here. first we determine trend by starting from midnight ny time to 830 ny time. If we are in a range then High or low needs to be taken out. If market is waving down or up then you have discovered the trend. trend will only change if high or low is taken out. Once we know direction of trend we use these 2 patterns to get us back into the trend. first pattern is a 123, so if trend is down and market is retracing back up which means its making HH HL HH HL and it then doesn't make a HH that is a 123. second pattern is a 2b. so we are in downtrend and price is making LL LH LL and then makes a HH the last LL is our entry back into the trend as long as it doesn't form a 123 before it takes out last LL otherwise we take the 123 for entry Here are some charts to show what I mean

Divergence - do you use those times of midnight to 08.30 New York time specifically for trading oil or would you use them for other instruments?

Personally i only trade crude but if i did trade other stuff yes

do you look at u cad or any other correlations ever at all

no just the chart and the patterns. Win rate 79% so what i am doing works

Divergence - what made you choose those specific times?

Its beginning of ny session with 9 am pit open its when volume is the highest put volume on chart and you will see

How low can we go