Re: 60min Flow Trades for the Week: Saint's Method
Okay....sorry about that.....in continuation with the previous post,Flags present a problem for the Pivot Trader.A bear flag has higher pivot lows and high of decreased gradient as compared to the lower pivot highs and lows that make up the preceeding downtrend.That gives the impression that an uptrend has resumed when it actually is nothing but a pause in trading before we head to new lows.
Like in LT that day.....And in NF on 20th-21st Oct.
How we manage that is by putting in our stops at previous pivot highs in the main trend....in this example lower pivot highs in the main preceeding downtrend.If a flag were to take out our stop points,no choice but to reverse long and go with the resultant flow.Wrong on our part to anticipate that a particular move is a flag,and miss out on an uptrend.Wrong also to move stop down to the pivot high within a flag and get tossed about.
Of the 2 types of Flags,the Bear Flag is easier to deal with.......Downtrends seem to end with a failure pattern or a V shaped revival.Hardly ever is that time one sees a Higher Pivot Low and take off.
The Bull Flag is more difficult to manage.........Uptrends also end as above,failure,V shaped,or pattern breakdown......but many times,simply a lower pivot high and then a fall.To anticipate that every lower pivot high is a Flag is wrong.But price does give us a few hints.....For example,a WRB breakdown and then a lower pivot high.Raise stops.....Don't say that stops are not to be raised till new highs are made.
The way a Flag forms in an uptrend and the way the Reversal forms after an Uptrend are 2 different ways......The Flag will be low range bars,mild gradient,lower volumes....A Possible Reversal may give a signal by a WRB,higher volumes,and then lower vols as it makes a lower pivot high,before volumes come in and give us a confirmed reversal.
Important therefore to go through thousands of charts......all the above are words pointing to something...Don't get caught up in the web of definitions and words,....finally it's all about the charts,and how it plays itself out.
All the best!
Saint
i will post the charts of a few stocks i traded this week and nifty ofcource.....after saint sir's posts..which he will b posting soon.....
