Let us get down to it......
ENTRY:Think everyone knows this already.....a few things.This is a methodology that involves you to stop and reverse.Your exit on a position is therefore your entry in the opposite direction.Your reversal points are therefore crucial,which is why it has to be done at the aprropriate points.We will talk about this down this post.
EXIT:Once again,no taking profits......this is an enter,add,exit and reverse method.....no profits off the table.What you as an individual would like to do is out of the confines of this discussion.Every exit is therefore your entry point in the next trade and should therefore be that appropriate point.
PROFITS:None.
ADDS:Initial Position+3 ADDS in NF,Initial Posns + 5 ADDS in ABAN,IP+2ADDS in HDIL,JPA.,IP + 3 ADDS in RELCAP,L&T.........All ADDS are Rs7 above that reference point,be it a pivot or a reversal signal,etc.
Where are the ADD points?Pivot points,in a WRB breadown---below the breakdown bar.
REVERSAL POINTS:---
A.VISUALLY OBVIOUS PIVOTS:-Let us talk shorts,as the case is always to talk in terms of longs........Lower Pivot Highs and Lows,visible ones,visually obvious ones,.........every breakdown to new lows is an opportunity to bring stops down to the latest pivot high.Keep doing this till a previous pivot high is broken.A break of that pivot high and we exit all positions---initial +3adds---and enter initial positions long.Very simple.......There are a few amongst us who would say that pivot identification is difficult.It's as simple as it looks.........just focus on 2 things:a.visual b.new lows,then move stops(in most cases).REVERSAL is Rs 15 below the previous pivot low
B.2 BAR METHOD:--In a vertical move,where there are no pivots,move stops to the high of 2 bars back in a down move......move stops to the low of 2 bars back in an up move.REVERSAL is Rs20 below/above 2 bars back.
C.VISUAL GAPS:A visual gap is simply a gap that can be seen visually.......Scenario 1:You are holding short positions in NF,and market gaps down visually...not 0.5%,not 1%,not 5% and all that........visually.Reverse to longs-initial posns- on the break of the 1st 5min bar.I hope you understand.......no waiting for 3 days and 4 days.........Visual gap down in the direction of your short positions ......Go long Rs20 above the first bar.Nothing to be done if prices keep plummetting in the direction of trade.
Scenario 2:You are holding short positions and market gaps up visually on your 60min charts.........wait for the first bar to close(5mins),long above that bar by Rs20,stops below that bar by Rs20 in case reversal back to shorts happen on the same day.Nothing to be done if longs don't trigger and price falls from there.
Scenario 3:You are holding longs and market gaps up visually......Reversal below the frst 5min bar's low with stops at 5min bar's high.If lows trigger by Rs20,exit longs and enter short.Nothing to be done if price gaps up and keeps shooting up.
Scenario 4:You are holding long positions,and market gaps down visually.........wait for that 5min bar to close.Short below that bar by Rs20 with stops Rs20 above incase market reverts to longs the same day.
There is no more analysis of whether gap is below the stop or not........every visual gap the direction of the move which is against the direction of the trade calls for a reversal.
The Rs20 level in case of visual gaps,is a moving filter,which we have been using in the Intraday Mini Flow..............NF gaps up to H 3500 L3466,the next hourly candle has to hit 3520 for us to reverse to longs.....If it reaches 3515,our new entry price is 3535.
There is no moving filter in case of pivot reversals and 2bar method reversals.
TIMEFRAME:Only 60min Charts......no referring to 30min charts and choosing certain pivots and not others.......Allowing the "I" to come into play is dangerous,our job as traders is to set everything in motion and keep the thinking analytical mind out of the picture.60min is good enough for what we want to achieve.
CANDLESTICK PATTERN,TECHNICAL PATTERNS,SUPPORTS/RESISTANCE::-None required or going to be utilised.
ADVICE:More active intervention is required especially on gap days........but other than the right amount of action,no more than that is required.Don't go around over scrutinisng,over analysing........once the processes are looked into,your job is to stay out of the way between yourself and the trade.Your job is to get the direction right and allow the Market to do all the hard work and put money in your pockets while you sip your coffee and laze around.
All the best!
Saint
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