Re: 60min Flow Trades for the Week: Saint's Method
Read some debate about whether a moving filter is applicable to Pivot and 2 bar reversals. Moving filter is a beautiful concept and though we had not used it very routinely in 60 min flow ( we use it in mini flow very routinely) we can incorporate this concept in 60 min trading also.
Saint has suggested use of moving filter in his Post No 8583 of 21 Nov 2008on P 859 in master thread and I am reproducing it as under :
One reason to have gone long today would have been a pivot break or more of a sideways congestion breakout......the reason why you should not take it is as follows:
We keep a filter and taking it out demonstrates strength.....even our old filter does not get taken out by the breakout bar H2559,next bar H2568,next bar H 2571,next bar H 2575........the basis of the moving filter came from this thread,hidden now in tonnes of posts.....we have never needed to use it much over here thus far,but then there comes along a day like today.
The virtues of the breakout bar cannot be extolled enough......if the first bar doesn't get us in,the second bar.....when price blasts through a big filter,there is conviction for a reversal.And a limp breakout and the next and then the next.........without hitting the Filter,no conviction.Therefore short.
No idea whether we gap up or down.......but as of today,Price hasn't given us that extra conviction to revert to longs.
Saint
__________________
"You cannot change the direction of the wind,but you CAN adjust your sail..."
Friends remember that Saint has given us 60 min method as a template and we have to improve it by adding useful parameters which will help us trade better. So adding moving filter in my opinion is a great step towards avoiding reversal on limp breakouts thus minimising whipsaws and making our lives as traders a bit less difficult.
So if comfortable with it add in your trading toolbox right away ,if not comfortable,defer for some more time.
Best Wishes,
Smart_trade
Read some debate about whether a moving filter is applicable to Pivot and 2 bar reversals. Moving filter is a beautiful concept and though we had not used it very routinely in 60 min flow ( we use it in mini flow very routinely) we can incorporate this concept in 60 min trading also.
Saint has suggested use of moving filter in his Post No 8583 of 21 Nov 2008on P 859 in master thread and I am reproducing it as under :
One reason to have gone long today would have been a pivot break or more of a sideways congestion breakout......the reason why you should not take it is as follows:
We keep a filter and taking it out demonstrates strength.....even our old filter does not get taken out by the breakout bar H2559,next bar H2568,next bar H 2571,next bar H 2575........the basis of the moving filter came from this thread,hidden now in tonnes of posts.....we have never needed to use it much over here thus far,but then there comes along a day like today.
The virtues of the breakout bar cannot be extolled enough......if the first bar doesn't get us in,the second bar.....when price blasts through a big filter,there is conviction for a reversal.And a limp breakout and the next and then the next.........without hitting the Filter,no conviction.Therefore short.
No idea whether we gap up or down.......but as of today,Price hasn't given us that extra conviction to revert to longs.
Saint
__________________
"You cannot change the direction of the wind,but you CAN adjust your sail..."
Friends remember that Saint has given us 60 min method as a template and we have to improve it by adding useful parameters which will help us trade better. So adding moving filter in my opinion is a great step towards avoiding reversal on limp breakouts thus minimising whipsaws and making our lives as traders a bit less difficult.
So if comfortable with it add in your trading toolbox right away ,if not comfortable,defer for some more time.
Best Wishes,
Smart_trade
