Flag trading the trend

inventories out early?

1 minute

yes my mistake movement must have been due to something else

DOM bouncing like a Mexican jumping bean

that was just market moving it up so it can sell high

well I might as well share this I have been trading the 7 tick range bar chart stop and target is 9 when up 7 move stop to +1 trading only 123 or 2b back into trend. I was getting sick of price getting up 9 and then getting to +1 then going up for a win so I started to look at this and backtested it from January till present and it is an 80% win rate so risking 1 to 1 is fine with that win rate. my only concern was if it was to fast to put on entry and the answer was no as I traded it live via sim and there was no problem. the only time I would not take a setup is if say the 2 pt was 14 our entry to short would be 13 but if bar would close at 14 that's a double bottom I let those go. how will we know if it will close down there? the bar countdown and data window. you will have 50 to 60 trades a month march was 127 trades winning 103. I have already parlayed from 1 lot to 3 already this week 7 wins 1 loss

Quick question Divergence - Is there a reason why we use a static TP and SL and not put stop loss at the traditional area above point 3?

I was just studying it and wondering what made you choose that.

From back test it looks like when it does work then the point 3 is not violated anyway but sometimes you are stopped out but then the price goes to tp

when trading range bars pt 3 might not be pt 3 on a time chart and we are using line charts so 3 might be less that 9 ticks also since you cant trade micros like in forex the number1 thing you must deal with and its really the only thing we really know before we put on a trade and that's how much are you willing to risk. I am of the class of getting more with less. so if I have a net day of 3 wins at 9 ticks each with 3 lots which of course I built up to via profits that's 810 dollars

Makes complete sense. Thanks D

many thanks for sharing this Harold .. top work again. Regarding the double top/bottom, the following signal from 2nd nov would not be a trade because of the double bottom:

you can use whatever range bar setting you like and feel comfortable with to me its all about making money and this is how I am doing it. the principles remain the same we are in essence trading the pullbacks in the direction of days trend heres a chart from today

no the trend was up forming a 123 but if you look at chart the 2 pt to go long was 63 so entry would be 64 but if price closed at 63 you wouldn't take it and it did close at 63

sorry forget my post above you've just explained it cheers Harold

Erasmus and others here what I am talking about where we are looking to enter if bar closes at the same price as point 2 let it go heres a chart showing this

wish I was doing this in march there was an amazing 127 trades that month winning 103 heres a chart from just 1 day

In Luc Besson's 1994 movie "Leon : The Professional" ("Leon" in its European release), there's a scene in which Leon has asked Old Tony to procure him a rifle. Old Tony is surprised - Leon normally works with his "clients" at very close range only - and says to Leon :

"Practice is good - not too much though - but change... change is not good...."

That's my message for this thread today (I tried to find the scene on YouTube, but could not find it "on its own"), to be interpreted as anyone sees fit .

Btw, I'm almost never trading in the afternoon these days, so not much posting - Life has been getting in the way, as they say - so it's back to FDAX in the European mornings. If you trade the futures, rather than CFD, it's not for the faint of heart (it's an almost uniquely volatile beast)...

But being a morning person, I've always preferred trading at this time : more often than not, I've hit my daily target or daily max loss within the first 60 mins or so.

Postscript edit : ... & like most of my posts, this is directed primarily at myself ...

Thanks for the post JTrade

What Range do you use for FDAX?

R13 this morning :

I have skirted around this issue in my few posts to this thread. The price action principles are excellent. The ever-changing attempts to figure out how quickly one can move their stop to break even or +1 tick are instructive to all who continue to struggle with this trading business (and I doubt there are many who from time to time do not out of the trading zone and need to re-do his or her induction phase, so to speak - myself included).

I have long advocated that anyone interested in becoming a trader who is not achieving the desired outcome or goals he has set for his trading should study and really focus on understanding the material in Trading in the Zone. I recently bought Mark Douglas's Trading in the Zone in audio book format. I listen to it during my morning walk, and I have been listening to it and taking notes at my desk once my morning prep is done as I await my first set-up to appear. There is not one person posting to this thread who would not benefit from reading, studying, and listening to that book. The 20 trade exercise is an excellent tool for building and strengthening one's ability to enter "the zone." But one needs to start that book from the beginning, and follow it intently. In other words, jumping to the 20 trade exercise without fully and thoroughly understanding what it is you are supposed to get out of the exercise will be as futile as most attempts to trade by the retail stay-at-home trader.

A sure sign that you are not accepting the risk, entering the zone, and at peace with the uncertainty principle is a never ending search to tweak one's time frame, bar interval, chart or indicator style, or even bouncing from market to market. It is a sign that you are instead trading from a position of fear, rather than that of being open to what the market is actually offering you at the present unique moment.

Still, one of the best threads to come about here at FF in a long, long, while. As always, my deep appreciation and a heartfelt kudos to divergence for bringing basic PA concepts back to FF.

As usual DD good insight. Long at 51 off the hat won