Going with the Intraday Mini-Flow!!

[pakatil]

Dear ST,

I got my reversal from 15 Min Chart. There was Bullish WRB @ 2 PM. Next there was Bearish WRB. I thought this was negation of upward thrust. At this time SAR moved to Low of Bullish WRB. Then 2.30 Bar surged up and hence moved SAR to Low of Bearish WRB.

Hope my reading is correct.

Cheers

 

[orderflow13]

saint sir, while giving answer to the post of Smart_trade also explain whether we looking at inside bar b/o to stop and reverse ? or is it premature as we trading in 30 min tf bars ?

 

[rakeshluthra430]

Saint...I guess I would have messed up with the rule reg going long over a bars high, which was preceeded by a wrb on the downside...pl let me know from charts posted

Rakesh

Should we cosider the length of the resting bar ? In our case resting bar was a WRB in itself so I was very confident of reversing below the low of this bar but had it been a smallish bar,then I would not have been very sure of reversal if this bar,s low is cracked in next 1-2 bars.

Smart_trade

Smart,
Exactly my doubt too ...faced it while backtesting the Aban charts. One more doubt......in fact, not a doubt but an observation.

I found that although this method is highly profitable, with size of profits much larger than the size of losses...but the initial risk/reward ratio is not that good. I mean...our initial risk while taking a trade is rather large, and we dont get multiple returns as compared to that initial risk.

How the affects is....our initial quantity cannot be large, and so the profits. Maybe that is true for all intraday methods....but honestly, I havent traded any daytrading method before, so maybe my observation is wrong (I somehow tend to compare this with the 60 min wrt r/r).

A solution can be to adopt a fixed quantity approach, but that is rather risky. Is there any other way to reduce the initial risk or to improve the r/r??

Sorry if this sounded an immature query..but reply anyways to it in your time.

Thanks a lot,
Rakesh

 

[samthomas]

hi ..so today was a bumper day..but unfortunately not many were able to extract the maximum juice out of it..some were out about 100- 150 points above the closing price..just some thoughts..applied it myself today ...even if out fully on intraday if fresh pivots break like today on the 15/ 20 min chart one can consider fresh shorts..another thing in an extended move atleast let a 15 min bullish candle form or the previous bars high be taken out before booking profits..might help in avoiding premature exits..
Regards,

 

[Saint]

Not me ... out 100 points back ...

Didn't anybody get back in or hold positions till the end.........pulled another 60pts sitting at the restaurant.

Was hoping you guys will be making a killing.Hope some of you did.

Anyway,great day and great going.

Saint

 

[Saint]

hi ..so today was a bumper day..but unfortunately not many were able to extract the maximum juice out of it..some were out about 100- 150 points above the closing price..just some thoughts..applied it myself today ...even if out fully on intraday if fresh pivots break like today on the 15/ 20 min chart one can consider fresh shorts..another thing in an extended move atleast let a 15 min bullish candle form or the previous bars high be taken out before booking profits..might help in avoiding premature exits..
Regards,

Basically today was a hold till end type of day.......those who got out thinking that circuit was going to hit would have just got back in below pivot lows.

I took more below the pivot low crack but was not in front of the monitor,therefore very thrilled with the added 60 pts.

This methodology wise........it's a hold till the end type of day.

Saint

 

[Saint]

Was a great day for, but as the market crumbled down more and more, now the question arises should we continue day trading on monday or just wait for some time to get it settle down.

Today almost all of us got out in the middle only. I was very happy with my profits what I made today, thanks to saints methods.

But what next, should we go on as the regular day for monday or wait.

Seniors please advice.

Thanks and regards,
Rajendrani

All as usual unless if you don't want to trade,that is......Diwali and all.After a day like today,might just get a good move on Monday in the reverse direction.......but to trade or not to trade is your call to make.

Saint

 

[Saint]

Not many posts here this evening.Everyone enjoying profits ?

Saint are you feeling well ? If so please guide me on my following doubt.

I am posting NF 30 min chart below :

We had a strong breakout bar at 2:00 yesterday (23-10-08) .The next bar was a bearish bar (black candle ) as a resting bar. I have read a rule that the resting bar is ok but the next bar after resting bar has to continue in the direction of WRB (bullish in our example).If it breaks the low of the resting bar then reverse.

There could be 2-3 sideways movement bars after WRB and we will assume the first bar as resting bar but 2nd bar can break the low of the resting bar in a sideways movement and we will reverse our position prematurely on break of resting bar low (low of 1st bar of the sideways movement. How do we guard against this premature reversal ?

Should we cosider the length of the resting bar ? In our case resting bar was a WRB in itself so I was very confident of reversing below the low of this bar but had it been a smallish bar,then I would not have been very sure of reversal if this bar,s low is cracked in next 1-2 bars.

How do I solve this bit of a dilema ?

Answer at your convenience.

Smart_trade

SmartTrade,

You have yourself resolved the dilemma.....and bang in target as always.A WRB to the up,on increased volumes moving quick and steep, is followed by a resting candle that is a bearish candle usually negating half or more than half of the previous WRB.......Look to short the low of that candle.Most of the times it goes your way,sometimes it doesn't as is in most things trading related.And,yes,in contrast,a nrb after a wrb only adds to the bullishness of the entire pattern.

The negation of the entire wrb is confirmation of the bearishness........you could even add to your short positions on the negation of the entire WRB.

Saint

 

[Smart_trade]

SmartTrade,

You have yourself resolved the dilemma.....and bang in target as always.A WRB to the up,on increased volumes moving quick and steep, is followed by a resting candle that is a bearish candle usually negating half or more than half of the previous WRB.......Look to short the low of that candle.Most of the times it goes your way,sometimes it doesn't as is in most things trading related.And,yes,in contrast,a nrb after a wrb only adds to the bullishness of the entire pattern.

The negation of the entire wrb is confirmation of the bearishness........you could even add to your short positions on the negation of the entire WRB.

Saint

Saint,

Thanks for the guidenace.Had the same thought in my mind regarding resting WRB and happy to get your confirmation.

"The negation of the entire wrb is confirmation of the bearishness........you could even add to your short positions on the negation of the entire WRB."

This is a new thought for me.I will use it in my trades. I may short half at the crack of low of resting WRB and balance half at the crack of low of the original (bullish in our example)WRB.This will also reduce my risk just in case the market decides to go in its original upward direction just after my first entry.

Thank you once again,

Smart_trade

 

[Smart_trade]

Smart,
Exactly my doubt too ...faced it while backtesting the Aban charts. One more doubt......in fact, not a doubt but an observation.

I found that although this method is highly profitable, with size of profits much larger than the size of losses...but the initial risk/reward ratio is not that good. I mean...our initial risk while taking a trade is rather large, and we dont get multiple returns as compared to that initial risk.

How the affects is....our initial quantity cannot be large, and so the profits. Maybe that is true for all intraday methods....but honestly, I havent traded any daytrading method before, so maybe my observation is wrong (I somehow tend to compare this with the 60 min wrt r/r).

A solution can be to adopt a fixed quantity approach, but that is rather risky. Is there any other way to reduce the initial risk or to improve the r/r??

Sorry if this sounded an immature query..but reply anyways to it in your time.

Thanks a lot,
Rakesh

Hello Rakesh,

Your observation has lot of fundas of intraday trading .I will summerise my views as under :

1) Yes you are right that at the time of initial entry our SL is a bit too far for intraday trading as most would see. But it is a stop only if the market goes against us right from the word go and straightaway hits our SL but you will agree that that it very rarely happens. In most cases,market will do something which will enable us to bring our SL down and reduce our risk. And the kind of agressive traders you and some of our friends are we will not generally let our initial large SL get hit.

2) But we have to trade small quantities as there is a possibility,however small,of our SL getting hit straight away,but we have to respect risk and once the trade moves in favour we can add to our positions. We should NEVER exceed our initial risk % of 1 or 1.5 % of trading equity no matter what .....

3) Conventional daytrading systems operate on large quantities and small SL but get their SL hit 2-3 times a day and having traded number of such systems (successfully or otherwise is another story ) I have come to conclusion that there are some great traders ( like our Asishda,who can do a great job scalping,but the question is am I that expert or blessed like them ?My honest answer is I am not.




Best Wishes,

Smart_trade