Trading the 10min with a 30/60min perspective

Hello,
Keeping with Pivot methodology of trading I would like to start a new thread for daytrading.

Perspective here will be the 60min and 5 min used to initiate trades.
Have been thinking of starting a thread like this but did not have enough information or back testing results. This thread is a sort of diary so once we are comfortable with the trades we can take actual ones in times to come.

No, the trades posted here will not be real, unlike the 60 min flow thread where we are all trading with real money. Reason being I have no charts, backtest results to be confident of. Moreover I have little idea of what tweaks,changes, real time trading can bring.

Small note, if you have just started looking at the 60 min flow method, this may confuse you so choose either thread and learn one first. Don't want any confusions between these daytrades and the 60 min flow to arise.

SO with that lets start with some rules. They will be changed and tweaked with Saint's guidance.

Regards,
MJ-

Re: Trading the 5min with 60min perspective

Perspective : 60 mins
Trade with 5 min,
we shall never go against the higher trend, ever

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What are we trying to do?
First lets get our basics clear, (regular members can skip this)

Consecutive bars making new highs and newer higher lows, this is a RALLY. Nothing more
.The break of the previous low is the start (possibly) of a decline. once this Decline takes out last high we have an uptrend. We are trying to buy the delcine and ride it all the way up
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Now The Setup,
The setup is very simple, Supposing the 60 min chart is in an uptrend and is facing a decline now

If we change time and switch to 5 min we have a proper downtrend, One with lower lows and lower highs. It's a screaming bear market on the 5 min.
Remember we shall never go against the higher trend,
The moment the downtrend on 5 min changes to an uptrend we BUY.

Stop
Is at last PL on 5mins. when we are stopped out, we are out. We dont reverse positions

Filter
5 points

Adds
Will talk about this later, first will get our concepts clear.

Reward
We accept whatever the market is willing to give.

Gaps
A gap away from the previous days range we short/ long the first 5min bar with filter 15pts
Once the gap closes {-/+15} we get out 50% of our position.

We may not take a trade everyday, it may come once in a while but once taken and they work they should be worth the wait
Again I reiterate, I have not traded this regularly, just kept an eye on it.
So I though the best way to go about it is to post it on Traderji, so we can all benefit and change rules around

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Don't want to disturb what I have written above will update any new tweaks,experiments below.
This thread's Basic Guidelines Are below.

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We take positions based on the 60min flow. If we are short on the 60min, then we look to short on the 5min.
Positions taken will be on break of pivot.

Filter used is 5pts {if your not comfortable you may use 7,8; this is what I use and it works Okay for me so far...}

We trail stops to latest Pivot. So for Shorts we keep bringing the stops down as new PH's are created {most here are too familiar with this}

We trade Gaps. 50% of the position is taken out as the gap is closing { -15}
Eg: 60min we are short, market makes a low of 4500, next day we gap down to 4200. On the high of the first 5min bar we put a buy order +15. Once triggered we ride the wave up until we cut 50% of the position at 4500-15. Remaining we trail SL

Positions are closed EOD, I close mine at 3:20 - 3:25

Simple stuff, simple rules, Just follow them properly. Tweaks will keep coming up.

MJ-

Re: Trading the 5min with 60min perspective

About the Day trade part.
This is actually a Sister thread to the 60 min flow

Let me explain,
How many times have us flow traders,
gone short, seen our paper profits grow but we don't move our stops yet since a PH hasn't formed. Then all of a sudden the market reverses, takes out our stop and we end-up in a loosing trade.

I'm not saying that's bad at all, its part of trading and we know that well live to see a 400 point move in our favour after our stops hit, but can't there be a way to secure that little paper profit that we made?
This Thread aims at catching that move down. the above example is of a few days ago when we went short, market fell, made paper profits but we got stopped out and went long. Today we still are.

Would like to explain that better with a few charts.

But before this thread commences, I await a
"Heavenly Nod"
From Saint so I know i'm in the right direction. If i'm ripping things apart, please PM me, I shall make changes or delete the thread entirely

Regards,
MJ-

Re: Trading the 5min with 60min perspective

Congratulations and looking all the best going forward.
sikandar

Re: Trading the 5min with 60min perspective

Great initiative Mj

Regards
Satya

Re: Trading the 5min with 60min perspective

Very good initiative MJ. One can also take options trade like this. Suppose 60min. is in uptrend and 5min is showing a decline as soon as the 5min PH is taken one can write a put option (depnding on one's risk taking capability) or buy in the money call option. I prefer writing the option rather than buying because at least one factor is working in my favour and that is time. As in any trade SL is a must. This SL too should be calculated from 5min chart and positon squared off within the day. IMHO

Re: Trading the 5min with 60min perspective

An excellent kick off
vps

Re: Trading the 5min with 60min perspective

Thank you sikander
Satya, looking forward to coming days with you here
ARMHM : Sounds good, as long as you are taking a long position, option or futures, both good
Vpsarthy: Thank you, hope this thread is keeps alive in coming days

Will post charts, as soon as Saint has a peek at this thread

MJ-

Re: Trading the 5min with 60min perspective

MJ,

Amit did this concept with 30min as guiding charts. During that thread, as I recall, it came to conclude that we need not wait for 5min to be in downtrend. It was thought that any 5min PH overtaken should be bought if 30min is in uptrend. Exit was if 5min PL is violated to downside. This is as I recall.
Let's see if 60min as guiding charts brings more stability to 5min trading.
regards,
vin

Re: Trading the 5min with 60min perspective

read in elder ray's book abt factor of 5. if higher time frame is weekly then trades to be taken off the dailies, if higher time frame is daily then trades to be taken off the hourly & so on,,
for the 5 min , 25 or 30 mins wud be suitable then & more longer time frame wud lead to more lag as u wud be trading off the 5 min with 60 min as perspective...but then this is another view & i can be wrong..hope sum seniors can guide abt this time frame aspect.so MJ pls give it a thought
& proceed accordingly...does saint have time for this thread,,he is so busy posting on other threads...gr8 job in starting this thread..best of luck