Going With The 60min Flow!!!

[faith]

Hi ramdev6
Download files from following links .The first link also has pdf file of saint's teach a man to fish thread.Please remove spaces from the links

software ... fibotrader free software( with method how to install and upload data)
http:// r a p i d s h a r e . c o m...thod you have to go through all posts faith

 

[rkkarnani]

To ALL
I wanted to know why didnt we apply GAP Rule on 18th Nov. We are short since 11th .. we got good downtrend move for 5 days ..
One reason I can only think is first 5min bar is not Bullish.

How about today then .. why no gap rule today .. Continuous downtrend for 6 days .. Good visual GAP .. first 5min bar is bullish as well..
Is there any change in GAP rule?? Have I missed something???

PS: I applied GAP Rule today and have taken LONG.

Komal, On 18th, you 'may' call it a visual gap, but the entire opening bar is within the range of 3 PM bar of previous day. Not really a Visual Gap. Also as per gap rule the filter is ** points, the Long would not be triggered.

Today was sure a perfect day to use the Reversal in gap...seems u "may" done the right thing as per rules framed in this regard,:
we have a perfect visual gap ,the High of opening bar plus Filter is also triggered BUT the Most important thing you overlooked and the only thing that negates the use of gap rule today is the Long trade on 19th (yesterday).
We had gone long and reverted back to short yesterday , so the condition that "we are continually in the direction of the trend" for 3, 4 or 5 days is no longer valid.

 

[Smart_trade]

Very keen observation RKK, appreciate very much.

ST

 

[Sec 5 (Pyr)]

BUT the Most important thing you overlooked and the only thing that negates the use of gap rule today is the Long trade on 19th (yesterday).
We had gone long and reverted back to short yesterday , so the condition that "we are continually in the direction of the trend" for 3, 4 or 5 days is no longer valid.

Actually, since yesterday's move was just a fakeout, it still counts as a prolonged downtrend and therefore anyone following the positive gap rules should've gone long.

We've even had situations where it was a genuine breakout(a profitable one) but the breakout only lasts a day or so, meaning the overall trend when seen from a zoomed out chart is still a prolonged downtrend. I've seen it in the original examples posted for this method.

Also, there are a few other reasons to have gone long today, but since everyone's just trading independently now, there's no real "right" or "wrong" way anymore. The flow will unite us all soon enough anyway.

 

[masterjee]

sir i am new tothis site. iam a option trader . u'r tips very usefull for me

thanks.

ramdev6

Thanks baba ramdev - can you give us some yoga tips? For after market hours..
m

 

[Saint]

Nope for what ???? level ???

pS: these are ydays posts .. dont get confused.

Nope.....as in no mistake from your end.

Saint

 

[Saint]

To ALL
I wanted to know why didnt we apply GAP Rule on 18th Nov. We are short since 11th .. we got good downtrend move for 5 days ..
One reason I can only think is first 5min bar is not Bullish.

How about today then .. why no gap rule today .. Continuous downtrend for 6 days .. Good visual GAP .. first 5min bar is bullish as well..
Is there any change in GAP rule?? Have I missed something???

PS: I applied GAP Rule today and have taken LONG.

18th Nov,Komal.......Absolute No!......Multiple bars down on the hourly chart,not the daily chart,and as you correctly mentioned,a strong bullish candle,none of that was there.That day was a hold short and relieved that a gap down negated the end of day rally and went on to new lows.

Nothing to be done on 18th.....Sit tight and enjoy.....Something that I notice that many find extremely difficult.Doing nothing is doing a lot in this strategy,......Adopt the lazyman approach in this strategy......

Coming over to today......Multiple big bars down on the 60min charts.Big gap down.Bullish candle opening.....Yep,we would have employed it......Before I go to what should have been done,or was done today,I want everyone to understand the reason behind the rule......We are worried that we are going to get a gap down after a protracted bearish move on the 60,and then have a V shaped reversal to the highs .We therefore take the high of that first bar,add our filter,and go long.

Now today's case,we have Bar2 closing at abt the same levels,Bar 3 bearish.......yep,what comes into play is no more the Gap Rule.Stops remain at 2 bars back which is still miles off.Still short.

Saint

 

[Saint]

Komal, On 18th, you 'may' call it a visual gap, but the entire opening bar is within the range of 3 PM bar of previous day. Not really a Visual Gap. Also as per gap rule the filter is ** points, the Long would not be triggered.

Today was sure a perfect day to use the Reversal in gap...seems u "may" done the right thing as per rules framed in this regard,:
we have a perfect visual gap ,the High of opening bar plus Filter is also triggered BUT the Most important thing you overlooked and the only thing that negates the use of gap rule today is the Long trade on 19th (yesterday).
We had gone long and reverted back to short yesterday , so the condition that "we are continually in the direction of the trend" for 3, 4 or 5 days is no longer valid.

No RK,that long trade got nullified and we had to revert to short....so,the downtrend and multiple down bars on the 60 is there,the bullish candle at the open was there.....What wasn't there was the big BAR 2 and BAR 3,etc.....3 bars sideways,this rule does not hold.We are back to our usual rules......Stops at 2 bar back which is way back as we wait for a pivot to form.

Saint

 

[Saint]

Actually, since yesterday's move was just a fakeout, it still counts as a prolonged downtrend and therefore anyone following the positive gap rules should've gone long.

We've even had situations where it was a genuine breakout(a profitable one) but the breakout only lasts a day or so, meaning the overall trend when seen from a zoomed out chart is still a prolonged downtrend. I've seen it in the original examples posted for this method.

Also, there are a few other reasons to have gone long today, but since everyone's just trading independently now, there's no real "right" or "wrong" way anymore. The flow will unite us all soon enough anyway.

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

 

[Muktha]

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

Saint

Very nicely explained. Based on your new rules (which incidently again modified), even I was applying the moving filter yeasterday and it never got triggered.

Thanks for giving such a wonderful system.

Regards

Muktha