LIBRARY : Intraday Mini FLow

[TFL]

hari got a doubt regarding the 3rd march trade ...
the 6 point .."short triggered at crack of pivot low"
we had short triggered at bearish bar low prev to move2 breakdown bar...though not much diff between low of pl and that bearish bar ,practically we had to go short by the low of that bearish bar .....

pleaseharsh,

Can be gone both ways...already stated there in the 'point 6 'as a variation.

Haribird.

 

[TFL]

UPDATE

Some points from live thread:

To differentiate between dull move and reliable one we have to take help of 1) Volumes during 1st move 2) Angle of ascent

In Friday's case the move 1 had a steep angle of acsent but it had low volumes ( which picked in the afternoon session) to make things more confusing.Steep angle of ascent was showing that the 1st move (upmove is powerful) but it was missing our moving filter in aleast 2 bars.This angle of ascent was certainly too steep to call this move as a flag type corrective move. The low volume was giving the feel of a limping nature of 1st move. Both tests were pointing in different directions. There was no help from 15/20 min timeframes also.

We cannot design a system which will take care of all 100% occurances. If it takes care of 80 % ocurance, then it is doing a good job of handling various scenarios. Friday ,in my view was one such day where if you had shorted and added in the downmove (move no 2) it was ok,one could have reversed on subsequent break of PH and made the day as scratch day or slightly profitable day.

In such cases where the move 1 and move 2 little doubtful, we can consider applying moving filter to second move also,which could have kept us out of short trade and add. We could have gone long above PH ( in move 3 ,if you will) and ended the day with profit.Once pivots are established,it is pivots all the way.

There are no right or wrong actions on such days. We have to weigh the evidence we have about the moves,and take a trading decision and be alert to reverse it in case it proves to be incorrect.

Just put my thoughts which I was having while trading this move real time and reading various thoughtful posts on it EOD.

Best Wishes,

Smart_trade

You are absolutely correct ,arm, that 2 bars rule is to save us in case of V shaped reversals where pivots are far off.

After completion of 4 bars of HH,HL formation,we move our stop to the low of a bar 2 bars back (so 2nd bar in this case) -f . On 5th bar making a HH we can move our stops to low of 3rd bar -f ( without waiting for 5th bar to complete)

Best Wishes,

Smart_trade

Thank you,
Haribird.

 

[sumitro]

Traderji can we make this thread sticky?

 

[TFL]

Date: 01 April 2009

Some more about WRB.​

I am quoting following from Saint's post on Breakout and Continuation WRB.

DISCUSSION 2:THE WRB -HOW DO WE REACT TO IT?

The Intraday MiniFlow is a Today Only Flow.We have all kinds of bars that form in a trading day.One of the most exciting is the WRB.The WRB is a bar that is bigger than all the previous bars from a visual perspective.It is a bar that has its open near its lows and its close at or near its highs.How do we tackle this WRB?

There are 2 types of WRBs that we encounter on an intraday basis.

a.The Continuation WRB:We have our stops in place,we have had 2 or 3 up bars and then a WRB.If your stops were at LOD,or at previous pivots,move stops to the low of the WRB -filter.Simple as thatthe WRB is a good move in the direction of our trade.Negation of that WRB is enough for us to call it quits and reverse.A WRB in a continuation pattern can go on to make higher highs and lows as well,or it could be the heralding of the end of that move.We do not,as flow traders,want to get in between a good trade,and yet,we want to reverse if the latter scenario happensTherefore,stops to the low of the WRB - filters.

In a scenario,where the WRB is huge,rather a Monster WRBMove stops to the 33% mark of that massive WRB.This is calculated by calculating the difference between the Open and Close of that bar(not high and low) and divided by 3-filter(put a wider filter than usual).If this is hit,reverse.In a scenario,where the first bar is a bearish bar after the massive wrb,we now wait to see its action.If that 33% mark is hit,we reverse and go short.If that 33% is not hit,and it closes below the 50% mark of the previous WRB,raise stops to the low of that bearish candle- filter.If it hits,we reverse.Another scenario is that price moves huge,not triggerring the 33% mark,but goes below the 50% mark,note:we are waiting for its closeif that close is below the 50% mark,we do as above.If it isn't,we wait with our stops at the 33% mark.

Note:This above scenario is only when we get that monster wrb in a continuation move.A normal wrb continuation move,..we do nothing.We wait with raised stops at the low of the wrb.

b.The Breakout WRB:Once again,this is a WRB that breaks out of a consolidation or pullback past its previous pivot highs..same as above,once the WRB is completely formed,we raise our stops to the low of the WRB.Next we observe the next barif it closes below the 50% mark,we reverse below the low of that bearish bar.If it closes above the 50% mark,we wait with our stops below the low of the wrb.

Here again,if we get a monster WRB Breakout.we raise our stops to the 33% mark-wide filter.We wait for the following bar.If the bar closes above the 50% mark,we wait with our SAR at the 33% mark.If the bar closes below the 50% mark,we reverse below the low of that bar.

Note the differences between the continuation WRB and the breakout WRB..Please do ask your doubts and get it cleared up under the Ask Saint Section under the WRB thread.

All the best!
Saint

ST

 

[TFL]

A Quote from Saint...about WRB Reversal.

Re: Q&A on trading the WRB in the Intraday Miniflow!!
Saint001 31 Mar 2009, 22:21 +05.500
Hi Kinkhab,

A warm welcome………

We have a WRB Breakdown,very visually obvious one………..move stops to the 33% mark from the open.Which is (4088-3950)/3=4042.

Then,after another down,bar,we have a huge WRB on the 60min charts as well……work it the same way,you get 4024………it is hit on the next bullish candle on the 60.Reverse to longs at 4024,and adds as always.

Looking fwd to some great posts from you.

Saint

Thanks.

 

[TFL]

Duplicate post - Deleted.

 

[TFL]

Dear HariBird


I am a new person to trading..and i have lost 80000 in last 2 months earlier i lost 6000 but in a attempt to recover my loss of 6000 i lost 80000(Shorted 4 lots of Nity at 3000 level,,,still im going short in it waiting for a fall to come(hope it will come soon) . and now im thinking to recover my money by understanding the market....more in depth...and for this i require your help. Plz tell me if there is any charting software available for intraday data with support of realtime data and historical data...and advice me anything which u think is good for me....

thanks a lot...

theonedevil,

Welcome theonedevil first of all I want to say is... you posted the above in a wrong thread.
Requesting you to please delete the post... ( Request to traderji through this link to delete your post http://www.traderji.com/sendmessage.php )

Also post the above in the beginners thread and answers from me an many will follow you there. Kindly do a check about the topic before you post.
Beginners thread can be located here
http://www.traderji.com/beginners-guide/23815-absolute-beginner-guide.html

Thank you.

 

[Smart_trade]

Re: Q&A on trading the WRB in the Intraday Miniflow!!
Saint001 31 Mar 2009, 22:21 +05.500
Hi Kinkhab,

A warm welcome

We have a WRB Breakdown,very visually obvious one..move stops to the 33% mark from the open.Which is (4088-3950)/3=4042.

Then,after another down,bar,we have a huge WRB on the 60min charts as wellwork it the same way,you get 4024it is hit on the next bullish candle on the 60.Reverse to longs at 4024,and adds as always.

Looking fwd to some great posts from you.

Saint


I am posting 30 min and 60 min charts of Bank Nifty on 31-3-09 so that the above points in the post of Saint sir can be seen on the chart. Posting 30min and 60 min both showing Monster WRB and the SARs we keep.

Best Wishes,

Smart_trade

ST

 

[TFL]

5th Bar Profit Booking method

It has been my observation that mkt goes sideways or takes a correction after 5 bars of trending in any direction. Always if you are short,it is a good idea to take some profit in 4th bar dip or the 5th bar. This gives you a great profit booking entry when nobody is expecting a correction against our existing position.

You will be surprised to see this 5 bars phenomenon on any timeframe. See it on 10 min,30 min and also 60 min TF. In fact this is one of the profit booking technique in some system. I can name the system but dont want it to cause any confusion here.

But I am also surprised to see mkt going in correction mode ( not necessarily trend change mode ) in various time frames from 10 min to daily charts after 5 bars of trended move.

Courtesy: smart_trade's post

 

[TFL]

Trade Date: 05 May 2009
Bank Nifty Futures.

We did a mistake as per Saint this day. See the charts.

1. We did like below

Todays trades were as under :
1) Long on 10:30 H + mov filter , added above 11:00 H +add filter

2) Reversed to short between 12:30 and 12:45 on a PL break in 15 min.12:30 candle on 30 was a white candle but 12:00 candle on 60 was a bearish candle and PL on 15 cracked…hence gone short on TFA of 15/60 min

3) Reversed to long above 3 sideways bar H (12:30 H ) +rev fil

Will you please examine these trades particularly trade no 2 and guide me whether the reversals could have been early ?…..were different trades warranted ?….was feeling total clueless in Bank NF miniflow today with 2 reversals( reversals too pretty late )…..

Regards,

Smart_trade

2. Saint corrected it as below,

Hi ST,

1)Correct on long entry,but that add was a tad bit aggressive,best to wait for a pivot to form before adding.

2)No reversals to short……..moving filter bar by bar kept us out of that one……and moreover,yes,there is a 15min pivot break,no confirmation from any other tf.So,we wait for that SAR on 30 to trigger before reversing to short.

3)If by any chance,you had indeed gone short,then yes,correct on the reversal back to long.

Saint