Taming The Untamed
- Thread starter Shantala
- Start date
Abbreviations…...Meaning.
PH……………............Pivot High
PL………………..........Pivot Low
BPH……………..........Body Pivot High
BPL……………...........Body Pivot Low
ERL……………...........Early Reversal Line
VRL……………...........Visual Reversal Line
VisD...………….........Visual Distance
SB………………...........Spring Board Pattern
SOH……………...........Sitting On Hands.
EOM......................End of Move
EOD……………...........End of Day
LTF.......................Longer (Term) Time Frame
f...........................Filter
F or LF.................. Larger filter then normal filter
SL.........................Stop Loss
SAR.......................Stop And Reverse.
PH And PL:
Pivot High And Pivot Low.
PH and PL are our very basic and most important tools in flow trading. If not clear about them then I request you to go through the thread I mentioned in 1st post.
BPH-BPL:
Body Pivot High And Body Pivot Low.
They simply are PH and PL made by the body of candle and not wick.
Usually we look for Body High of a bearish candle for BPH and Body Low of bullish candle for BPL.
VRL-ERL
VRL- Visual Reversal Line.
They are simple reversal points using BPH or BPL instead of PH or PL. That means hear we use body of candle and not the wick for SL or SAR. So in an Up move we use BPL and in Down Move we use BPH.
************************************************** ***************
ERL- Early Reversal Line.
Just like VRL this are also reversal points but here we are using BPH in case of Up Move and BPL in case of Down move for reversal. Now here we don't use every BPH or BPL as reversal point. There is a condition needed to be fulfilled before taking this points as ERLs. And that condition is there should be enough VisD(Visual Distance).
VisD - Visual Distance
Simple as name suggest. A distance from a particular point to another point. Here we need them to identify a valid ERL.Lets take an example of uptrend. Assume we are long.
Price Moves further up. New HHs and HLs. Giving us a rally.
Now price comes down a little. Gives us PH and BPH. Now at this point this BPH is our POTENTIAL ERL. Not even active or not even existing. But potential ERL. To be it an ERL, we need new high which breaks this BPH.
Now we’ve got new high which breaks BPH and makes it an ERL.
BUT…to be an active ERL we need strong close above this BPH. That means we require VisD. A distance from BPH to highest close made. Not necessarily in one bar. May be two or three. But we need a strong move crossing that BPH to make it an active ERL.
Active ERL
SOH……………...........Sitting On Hands.
Many times in Ambush or Miniflow we do not take any position. And waiting for proper place to enter. This we refer as SOH. Means not taken any position. We can be SOH in Ambush or Miniflow only. Not in 30 min flow. Which is always in trade method.
************************************************** *
EOM......................End of Move
Again mostly used in ambush and Miniflow. There are certain patterns which suggest that an ongoing move is nearing to its end. Like large bar with heavy volumes. Or bar closing at it's highest(lowst in case of down move). This signals indicating move is ending...we call them as EOM.
************************************************** *
EOD……………...........End of Day
End of Day means when trading day is nearing to end. That is around 3.25 pm. In Miniflow and ambush we close our position at EOD. That means we exit @ around 3.20-3.25 pm. Or in 30 min flow many times we need to reverse our position at that time. We call them as EOD reversal.
************************************************** *
LTF.......................Longer (Term) Time Frame
Time frame longer then the time frame we are trading. Like in ambush we take our trade in the direction of LTF which is 15/30/60 min. Or in 30 min flow we see LTF that is daily flow to deciede on number of Adds we can take.
************************************************** **
Source: Saint sir
PH……………............Pivot High
PL………………..........Pivot Low
BPH……………..........Body Pivot High
BPL……………...........Body Pivot Low
ERL……………...........Early Reversal Line
VRL……………...........Visual Reversal Line
VisD...………….........Visual Distance
SB………………...........Spring Board Pattern
SOH……………...........Sitting On Hands.
EOM......................End of Move
EOD……………...........End of Day
LTF.......................Longer (Term) Time Frame
f...........................Filter
F or LF.................. Larger filter then normal filter
SL.........................Stop Loss
SAR.......................Stop And Reverse.
PH And PL:
Pivot High And Pivot Low.
PH and PL are our very basic and most important tools in flow trading. If not clear about them then I request you to go through the thread I mentioned in 1st post.
BPH-BPL:
Body Pivot High And Body Pivot Low.
They simply are PH and PL made by the body of candle and not wick.
Usually we look for Body High of a bearish candle for BPH and Body Low of bullish candle for BPL.
VRL-ERL
VRL- Visual Reversal Line.
They are simple reversal points using BPH or BPL instead of PH or PL. That means hear we use body of candle and not the wick for SL or SAR. So in an Up move we use BPL and in Down Move we use BPH.
************************************************** ***************
ERL- Early Reversal Line.
Just like VRL this are also reversal points but here we are using BPH in case of Up Move and BPL in case of Down move for reversal. Now here we don't use every BPH or BPL as reversal point. There is a condition needed to be fulfilled before taking this points as ERLs. And that condition is there should be enough VisD(Visual Distance).
VisD - Visual Distance
Simple as name suggest. A distance from a particular point to another point. Here we need them to identify a valid ERL.Lets take an example of uptrend. Assume we are long.
Price Moves further up. New HHs and HLs. Giving us a rally.
Now price comes down a little. Gives us PH and BPH. Now at this point this BPH is our POTENTIAL ERL. Not even active or not even existing. But potential ERL. To be it an ERL, we need new high which breaks this BPH.
Now we’ve got new high which breaks BPH and makes it an ERL.
BUT…to be an active ERL we need strong close above this BPH. That means we require VisD. A distance from BPH to highest close made. Not necessarily in one bar. May be two or three. But we need a strong move crossing that BPH to make it an active ERL.
Active ERL
SOH……………...........Sitting On Hands.
Many times in Ambush or Miniflow we do not take any position. And waiting for proper place to enter. This we refer as SOH. Means not taken any position. We can be SOH in Ambush or Miniflow only. Not in 30 min flow. Which is always in trade method.
************************************************** *
EOM......................End of Move
Again mostly used in ambush and Miniflow. There are certain patterns which suggest that an ongoing move is nearing to its end. Like large bar with heavy volumes. Or bar closing at it's highest(lowst in case of down move). This signals indicating move is ending...we call them as EOM.
************************************************** *
EOD……………...........End of Day
End of Day means when trading day is nearing to end. That is around 3.25 pm. In Miniflow and ambush we close our position at EOD. That means we exit @ around 3.20-3.25 pm. Or in 30 min flow many times we need to reverse our position at that time. We call them as EOD reversal.
************************************************** *
LTF.......................Longer (Term) Time Frame
Time frame longer then the time frame we are trading. Like in ambush we take our trade in the direction of LTF which is 15/30/60 min. Or in 30 min flow we see LTF that is daily flow to deciede on number of Adds we can take.
************************************************** **
Source: Saint sir
Why one should trade the trend.....
Edwards and Magee ......
1. Stock prices tend to move in trends.
2. Volume goes with the trends.
3. A trend, once established, tends to continue in force.
In simple words,
1) Probability of moving the stock in the direction of the trend is very high.
2) Risk to reward ratio (RRR) in trends is very high as compared to trading range.
Once in a trend, the stock moves only in particular direction with minor corrections. Corrections are usually small as compared to with-trend direction move, so naturally stop-loss is small and this gives you RRR edge. Whereas, in trading range, targets are limited and stops are unclear. In trends, though the stock reverses from some resistance or support, it cracks most of the resistances or supports.
Edwards and Magee ......
1. Stock prices tend to move in trends.
2. Volume goes with the trends.
3. A trend, once established, tends to continue in force.
In simple words,
1) Probability of moving the stock in the direction of the trend is very high.
2) Risk to reward ratio (RRR) in trends is very high as compared to trading range.
Once in a trend, the stock moves only in particular direction with minor corrections. Corrections are usually small as compared to with-trend direction move, so naturally stop-loss is small and this gives you RRR edge. Whereas, in trading range, targets are limited and stops are unclear. In trends, though the stock reverses from some resistance or support, it cracks most of the resistances or supports.
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