Flag trading the trend

nice day DD I also had setup in same area I got in at 19 I let it break and pullback and was able to hold it and just closed it and made a total of 64 for that trade so 30 and 64 =94 ticks today so far I give thanks to DD and JT lets see what happens tomorrow I might have to blame them lol

Hi Harold

Have you now changed your trading style from what is mentioned in post 1?

Good technic to apply for all pairs. Just waiting for flag pattern to enter the market..

I quoted this earlier same principle same setup 123 just going about it a little differently. for last 7 years its been the same find the trend look for the pb find the setup in the pb enter trade manage trade make money.

Nice trading, D. I sort of screwed that up because I saw that range 585-647 and odds favored a nice little run after that breakout. I shoulda stayed long. I coulda been a contender. But I am very happy for you that you did the right thing. I trust you are feeling better and making progress along the road to recovery? Pain-free days are coming your way, D. They are coming your way!

Each day pain reduces. I am using this indicator to hold trade a little longer as well as obvious s and r. First trade obvious was resistance second trade there was none but indicator guided me like walking the dog.

I had something of what Ed S, who I have had the pleasure of meeting, calls an "Aha" this morning.

As my regular readers (that's a "Ha-ha...") will know, I have been frustrated recently by my apparently endless tweaking of my fundamentally-the-same method and the fact that in monetary terms I have simply not progressed at all in recent years (you know, H, when we first met all those years ago was the first time I strung consecutive $10k+ months together - seems like a lot of money now).

Mainly, I have changed : when I started trading, I was in my 40s, single, driving a convertible Porsche and living in a palazzo on the Italian Riviera. Now I'm divorced with a wonderful 15 year old daughter (I'm a late starter !) with a retirement fund devastated by the global crisis. So the stakes are higher and I am older and less willing - actually completely unwilling - to sit in front of a computer for long hours.

Then something DD wrote recently coincided with hearing something similar from a bond trader I know. DD mentioned a friend who is always in the market (during session hours, at least), ie. reverses out of positions, & the bond guy told me that trainee traders are told to sit in front of their trading platform - usually without charts, just watching the order flow - and always be in, long or short, just to get the feel / flow of things.

I realise now that when I am at the screen, I need something extra to hold my total focus, so rather than just wait for perfect setups - especially trading bonds, which can sometimes be very slow (although not so much in these volatile times) - my intention is to be in the market much more. ... and I haven't forgotten Harold's great quote "Be patient or you will become the patient" (or something very similar) ! This is about total, undistracted focus while trading for short periods.

Here's my first try this morning (would have been quite worthwhile if trading a 10 lot instead of a 2 lot... I'll get there... & btw, the first trade was supposed to be short & I went long, an interesting exercise in itself ).



Lastly, I'm going to start some H1 / H4 based FX trading - GBPUSD only as a great deal of volatility lies ahead around the Brexit issue - with my old friend 60minuteman (he's "gone commercial").... but that's another venture for my "retirement" (like my late father, who was an active architect until his dying day at 90, I will never retire.... work, play, what's the difference, it's all this blessed, sacred & wonderful Life !?

Oh... one more very important thing - this approach would imho be suicide trading the YM or NQ during the US morning session : FAR too fast market movement (ES might be possible, but I don't know).

Hi Divergence,

I have great respect for you. I appreciate the generosity to share your trading secrets. But I notice one potential problem:

You seem to be in an endless cycle of searching for new setups.

The old setups seem to have short lifespans. They either do not work well after few weeks or months, or they do not occur frequently enough anymore. After a while, you either switch to another trading instrument and/or come up with new setups. It seems to become a pattern. Is it possible to keep the old good setups, while adding new ones ? It may be better this way.

For example, is the second trade yesterday a variation of an old setup using the same MACD and CCI ?

Just my two cents.

Very important - and sometimes perplexing - question !

What do you think and/or do ?

In my opinion this latest set up on range bars is much easier to read and to implement, still using the concept of trend and 123 for entries.

The methodology has never changed. We find trend we wait for pb find the 123 setup to get back into trend manage trade make money. These patterns happen on every time frame range bar chart line chart renko chart etc. So nothing has changed they all work. War works the same way so as a marine we need to adapt improvise overcome

In my opinion, the setups before last weekend addressed two or more legged pullbacks, when there is a trend with the help of MACD and CCI. They are quite reliable, and worthwhile to keep. Yesterday two trades seem to be continuation pattern based on one-legged pullbacks. There seems to be no conflict between the old and the new setups. Of course, lifespan and frequency may still be a concern. Only time will tell ......

Just my two cents.

PS: I am still sleepy and have not examined your chart carefully.

Hi Harold
Are your BB MACD settings standard, 12-26-9 and 1.1?

Hi,

I have not examined all the charts of Divergence. But so far, I cannot find any Bollinger Band. Can you refer me to the relevant chart ?


Thanks.

BB is on MACD, not the main window

the indicator in question is a sierra chart one. its a macd bb ha all in one it shows the macd line with bollinger bands and heiken ashe dots its default settings are 10 21 16 BB 10 1

Are you using it instead of the old MACD 12 26 9 ?

jdt_MACD seems to be very complicated.

Thanks for confirming your settings

2b short at 79 for +15

Well done, Erasmus!