Going With The 60min Flow!!!

Originally Posted by rakeshluthra430

Great stuff Saint...keep up the good work.

One question though... what happens if a stock opens Gap-Down/Up against our position and below/above the last pivot low/high... do we wait for some time or close& take reverse position on the gap open.

Originally Posted by Saint

lol Rakesh.......always one step ahead,my friend.

Saint

Originally Posted by Saint

So far we have focussed on keeping ourselves on the right side of the trend.........we have got in and out of daily charts using the Weekly as Perspective.We have traded the Weekly with the monthly as perspective....and many trade the intradays with the 60 as perspective.

The 60min chart is always the referral chart,intraday traders use them as perspective.Daily chart traders use them to fine tune an entry........And then there are some of us who enjoy trading the 60min chart.Very simple stuff,not easy,but simple...........If you have the mindset to need to catch tops and bottoms so that you can sleep better at nights,or boast to your golfing buddies,then this ain't for you,my friend......the 60min trader cares two hoots in finding tops and bottoms.If you are the type that looks at P/L and gets fidgety as profits rise and have this urgent need to book them all,then this thread ain't gonna help you as well.If you have a mind that is rational,logical,analytical.........probably this thread would be of yawn stuff.........This thread is for the simpleton who goes long in an uptrend in the 60 and goes short in a dntrend on the 60......no great reasoning,no scientific theories,nothing to boast to your neighbour about.

This thread is for that simple minded person who can trade the Now,and keep the "I" out of the trade.

The 60min Trend Trade::Very simple........we trade the 60min chart only.No perspective charts here.No looking at trends on higher time frames.We buy previous pivot highs on the 60,we hold,and we exit once previous pivot lows are broken,and we go short,We hold,and then cover and go long once previous pivot highs are taken out.It's an always-in-the-trade type of trade.............There is no analysis here,no thinking,just going with the flow up and down.......the only work done is position sizing,maybe adding to positions,one keeps one's mind away from opinionating about the larger time frames........One just doesn't care anymore.A larger time frame crash will involve you into it,a euphoric rise up will have you in it,the frustrating sideways will probably get you in and out a few times but would be reduced if stops are placed in the right zones.........

As said before,one therefore just goes with the Flow...........things are kept very simple.I go long because the previous 60min pivot high is taken out,I exit and go short because the previous pivot lows are taken out,and vice versa.

Trade Smaller and Longer is the way out here.........I have a stop at previous pivot lows and stop is Rs60 away......I do my Position Sizing,and Rs12k is the risk I am prepared to take,therefore I buy 200,or 4NF lots.However juicy and yummy that pattern may be,I am getting in with 4 lots because my Trading Plan says so.

Add's as always at newer pivot highs with stops raised to latest pivot lows.....think it's a bit boring to repeat all of this......

To reiterate once more:

TIME FRAME:60MIN

PERSPECTIVE CHART:None

ENTRY:When the latest pivot high is taken out,enter long.When the latest pivot low is taken out,enter short.

EXIT:If initial stop is taken out.........If previous pivot lows in an uptrend are taken out,exit longs and go short.If previous pivot highs are taken out in a dntrend,exit shorts and go long.

When charts get vertical,steep-ish gradient,put stops at previous 2 bar low,exit long and go short if triggerred..........No steep gradient,no using this method,then it's pivots all the way.

ADD:Add to longs only if newer pivot highs are made in an uptrend.....Add to shorts only when newer pivot lows are made in a downtrend.

PROFIT TAKING:NONE......no profit taking as far as I am concerned.But do take profits off the table if you can't sleep nights and picking on your wife..........Profits therefore only for preservation of sanity.

POSITION SIZING:Very simplistic and rudimentary form,but it still has kept me out of harm's way..........already discussed in the "Teach a Man to...."thread.Entry is at point x........Stops are 60 points off.I take my capital,and risk only 0.5% of it ,say it's 12k.........divide 12k by 60 NF pts,you get 200 shares,or 4 nf lots.Therefore whatever happens,go long with 4 lots only.

One more add:Say we entered with 4 NF lots long,and added another 6 along the way,all the while raising stops,we hold all 10,we get pivots taken out or 2 bar rule in a vertical move violated,then calculate from that pivot high to entry point(for ease of calculations,presuming it's 60pts away,therefore you need to short 4 lots).........so we sell 14 lots,therefore exitting all 10 longs and entering 4 shorts......Apologies for multiple reiterations.

MINDSET:A mind that is simple........devoid of too many if's and but's and why's and why not's......a mind that refuses to get swayed by larger time frames,CNBC,other traders,gossip,rumours,etc............a mind that dares to stick to strategy and plan and in doing so stays in the present and is not swayed by a euphoric rise or a precipitous fall,thereby leaping over the Fear-Greed Barrier..........A mind that stays in the Now,removing the "I" from the trade........A mind that goes with the Flow......in this case the 60min Flow.

Shall add more later!

All the best!
Saint

Originally Posted by leo_3455

Dear Sir:

Thanks for sharing the knowledge and spreading the joy. Very rarely one comes across a selfless person like you.

Today's Nifty had good swings both ways. If it is not too much time consuming, please explain with today's chart the entry point, exit point, reversal point, etc. Or if you would prefer any chart that can give a diagramatic representation of the concept. Perhaps we can take a print out of that and keep that for reference.

Thanks.

Originally Posted by SGM

Hello

Let me give it a try, don't consider it till approved by Saint.

Flow Chart for a Long Trade

Adding to the Long Trade


Regards
Sanjay