Going With The 60min Flow!!!

[rakeshluthra430]

NC,

Its too much NC....you are too good and too creative.

Thanks a ton...also let me know if this picture can be enlarged before taking a copy.

Share more of these if you have.

Rakesh

 

[niftychance]

NC,

Its too much NC....you are too good and too creative.

Thanks a ton...also let me know if this picture can be enlarged before taking a copy.

Share more of these if you have.

Rakesh

I am glad you liked it ...

I just made it for my desktop wallpaper then thought of sharing it ...

btw, there's a story with the seagull, it goes by the name Jonathan Livingston ...

Thanks

 

[rkkarnani]

Saint,
Went through the gap rules and examples...the logic is well understood. However, also found out that the criteria does not meet often to qualify for the Gap-reverse rules.I was also working on the Gap scenarios....and found an interesting pattern.
Keeping up with your philosophy of keeping the things simple... and at the same time getting the reversals at the best risk/reward ratios, I have worked out the following rules:
1. We apply the Gap-reverse rule irrespective of markets making any HH/HL pattern. We apply the rule when the market opens above or below the market range made during the last 2-3 days. Meaning if markets opens above the high of last 3 days or below the low of last 3 days we apply the Gap-reverse rule.2. We go Long above /Short below the high/low of the first 5 min candle...if it meets our criterion with a filter of 20 points.
3. Thats it....

I am attaching a few charts in the following posts to make the thing clear. Please remember..this is my personal observation and does not become a rule till Saint puts his approval on it. I am open to all suggestions/criticism made with the aim of improving the rule....to make it more easier to grasp...and to make it effective.

Saint..this post is just to put forward my observations for your consideration. Not at all trying to overrule what you have already laid out....Cant do that, you know it by now.

Thanks a lot,
Rakesh
ps: Deliberately not using the word "visual gap" or any other gap-prefixed word.
Will also try to find something interesting about the 2 bar rule..or tightening the stops in a pivot less move next week...after getting feedback from all on the above.

We apply the rule when the market opens above or below the market range made during the last 2-3 days. Meaning if markets opens above the high of last 3 days or below the low of last 3 days we apply the Gap-reverse rule.

This not correct Rakesh! Gap has nothing to do with Time , number of days etc.

 

[Smart_trade]

Good concept.A gap above/below the price range of last 2-3 days is likely to be exhaustion gap and 5 min bar technique capitalises on this possibility giving early reversal and participating in the reverse swing.

Smart_trade

 

[KomaL2099]

...in continuation

The Correct tick mark denotes where the gap-reverse rule comes into play. The Cross (x) demotes where it does not.

Rakesh
In your chart extreme right you have put a cross.
But in this scenario Gap down opening is below our SAR and hence 5 MIN BAR RULE WILL COME INTO PICTURE .. NO CONFUSION ON IT.

 

[Smart_trade]

I understand that Sir.....but for a moment, just trying to keep all that I know aside...

Trying to re-invent the wheel..behaving as if seeing a price chart for the first time....without knowing what techical analysis is...
Just putting forward what I see working more often than failing.

Thats why I had deliberately kept aside the word "visual gap"..but somehow couldnt find a word to replace "gap" itself.

There are whipsaws doing the way I have attempted it....thats why asking for suggestion from all of you learned people.

Thanks a lot,
Rakesh

One way of reducing the whipsaws and increasing the success rate is wait till the market exceeds the high/low of previous day and then enter in the direction of 5 min breakout with LOD/HOD as a stop.

To illustrate,lets say market has 2-3 days of downmove,then opens with a visual downside gap and 5 min high gets taken out. Wait till the mkt penetrates the low of the previous day and go long with a stop of the the LOD ( today's). Here the entry will be a bit late but more sure. We can also do 50% on break of 5 min bar high and 50 % on the break of yesterday's low.

This is just a suggestion,no attempt to suggest any change in the system rules untill fully tested and accepted by all.

Best Wishes,

Smart_trade

 

[rakeshluthra430]

One way of reducing the whipsaws and increasing the success rate is wait till the market exceeds the high/low of previous day and then enter in the direction of 5 min breakout with LOD/HOD as a stop.

To illustrate,lets say market has 2-3 days of downmove,then opens with a visual downside gap and 5 min high gets taken out. Wait till the mkt penetrates the low of the previous day and go long with a stop of the the LOD ( today's). Here the entry will be a bit late but more sure. We can also do 50% on break of 5 min bar high and 50 % on the break of yesterday's low.

This is just a suggestion,no attempt to suggest any change in the system rules untill fully tested and accepted by all.

Best Wishes,

Smart_trade

Great..thats what I was looking forward to...good, sound and simple suggestions to improve this concept further...

Precursory checks on a few charts suggest good results whenever the conditions you specified are met....but let me work on this over the coming weekend.

Thanks a lot again,
Rakesh

 

[Pattel]

Saint,
Went through the gap rules and examples...the logic is well understood. However, also found out that the criteria does not meet often to qualify for the Gap-reverse rules.I was also working on the Gap scenarios....and found an interesting pattern.
Keeping up with your philosophy of keeping the things simple... and at the same time getting the reversals at the best risk/reward ratios, I have worked out the following rules:
1. We apply the Gap-reverse rule irrespective of markets making any HH/HL pattern. We apply the rule when the market opens above or below the market range made during the last 2-3 days. Meaning if markets opens above the high of last 3 days or below the low of last 3 days we apply the Gap-reverse rule.
2. We go Long above /Short below the high/low of the first 5 min candle...if it meets our criterion with a filter of 20 points.
3. Thats it....

Great effort Rakesh,
I have some interesting observation to share with you and others. I took NIFTY data from sep 30 till Nov 11 2008 and did back test twice

1. NIFTY using just pivots
2. NIFTY using pivots with gap rules.

Results are not much different, this is a smaller set of data and planning to extend this for atleast an year.

Just Pivots no gap Rules:
Total no of trades 11
Winning trades 7 Losing 4
Total points made 2447 (or 122350 Rs)

With Gap and Pivots: (considered all gaps)
Total no of trades 16
Winning trades 8 Losing 8
Total points made 2437 (or 121850 Rs)

When we are using gap rules we are killing some big winners but interestingly i didn't see any difference in final output.

I'm not suggesting anything to anyone, just sharing my observations. Comments or criticism all welcome

 

[bandlab2]

Can someone verify my november trades ? am i making a mistake ? so far all trades are losing and all of them as per pivot break rule, no 2 bar or no gap rule yet

 

[niftychance]

Hello

Nice discussion going on about better understanding of the method ...

Thanks Rakesh, Smart, Pattel and also Prabhjeet for ideas ...

Thanks