Companion guide for Saint's 60 minutes Flow

Dedicated to:
One and only ‘Saint’ for giving us such wonderful tool. Without his idea and commitment to help others selflessly there would be no public ‘60 minutes flow’ and there would be no ‘so many successful traders’ and finally no 'so many happy people'

Objective
To build a thread composing all necessary help resources for “Saint’s 60 minute flow”. Ultimately we want to have all rules, flow charts, graphs supporting the 60 minutes flow here.

Rules of this thread(As of now):
• Anyone can contribute in this thread; basically we are building a resource/help system.
• Not discussions generally allowed, but if there is any issue with the correctness of the material posted, yes we will discuss in the same thread but then once discussion is over we MUST remove the discussed posts immediately and promptly.
• We could even post daily charts etc each day so that anyone can understand the flow easily.
• Initially we are working on Nifty Future, but we will support any other future contract too.
• I will define additional rules soon so that we will have uniformity in our posts. Basically I want to have specific icons (images for each type of post, such as FYI, Must Read, Optional, Tools and External Resources etc).

Need your co-operation; I am not an expert on this method, just trying to learn as we go. So seniors please keep an eye on this thread for correctness. Basically stuff will be cut and paste here. Idea is to have only what is required in one central place.

First five posts are reserved to post the essence of the flow as main topic, we will decide about it later.

Dictionary
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Adds: ‘Add’ means we are increasing our positional size. When we initially enter a trade we enter with minimum size say 1 lot (based on MM). At certain levels when the charts show strength in our current trade we will be adding additional lots to our existing trade (if short, sell additional lot, if long buy additional lot). Adds are done with the money management in the perspective
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Downtrend: Series of lower pivot highs
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Entry: Point at which we initiate our trade. If we are already in a trade SAR for current trade will be an entry point to next trade.
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Filters/Jiggling space: This is the safety allowance we add/subtract so to make sure we are not whipsawed by the market turbulence. For e.g. if you know our point of buy is at 100 Rs, still we want to buy at say 100 + 5, to feel ‘Yes this is a strong point to buy’. We use different values of filters for buy/sell/add/SAR (pivot/gap/2bar) and also based on the instrument we are trading. Please check the table for current filters. When ever the any value is specified in the class room thread for buy/sell/add/SAR make sure to add/subtract (check) if the correct filters in place.

Filters Table
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Exit: Point at which we book profit/loss for our current trade. Also the SAR level of current trade. Usually there will be entry to next trade at this point.
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Gaps: Gaps, Visual Gaps
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Long: We buy first and sell later
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MM: Money Management
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Pivots
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SAR: Stop and reverse
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Short: We sell first and buy it later
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Uptrend: Series of higher pivot lows
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WRB:
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Please fill in additional stuff and I will update accordingly.

Philosophy: Instead of guessing the market trend just try to be with the market trend or flow with the trend

Trade: Indexes and futures.

With this guide we are mainly concentrating on Nifty futures and some selected Stock futures.

Technique: We trade the 60min chart only. No perspective charts here. No looking at trends on higher time frames. We buy on break of previous pivot high on the 60, then we hold and we exit once previous pivot lows are broken. On exit we enter short trade. Again we hold, and then cover and go long once previous pivot highs are taken out. This is an always-in-the-trade type of trade technique.

There is no analysis here, no thinking, no guessing or complex calculations but just going with the flow up and down. Things are kept very simple. We go long because the previous 60min pivot high is taken out; we exit and go short because the previous pivot lows are taken out, and vice versa.

Trade flow:
Entry: When the latest pivot high is taken out, enter long. When the latest pivot low is taken out, enter short.

Exit: If previous pivot lows in an uptrend are taken out exit longs and go short. If previous pivot highs are taken out in a downtrend, exit shorts and go long.

Adds: Add to longs only if newer pivot highs are made in an uptrend. Similarly add to shorts only when newer pivot lows are made in a downtrend. Every down/up bar is also an opportunity to add. This depends on the chart and the way it makes its moves.

Profit taking: NONE. No profit taking as there is no fixed target for the trade. Collecting the profit or loss only when we reverse the trade. But do take profits off the table if you can't sleep nights and picking on your wife!


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, rumors, 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.

Based on Saint's Post

Author: niftychance

Resources

Latest rules from the Master himself

The Class Room

Teach a man to fish and .....

Compilation of Teach a man to fish to MS Word format: http:// r a p i d s h a r e . c o m /files/153215884/Saint.zip

60 Minutes flow tracker excel file

More to come with your contribution

5. Reserved for a post on 'essence of the flow'

Flow diagram/chart for a typical Long trade



Author: SGM

Sam, Giving you idea about how I add to my postion on retracement. Keep in mind, that it is not what "60min flow --" strategy suggests for add in. Mentioning it here so that readers get some idea..

I use fibonacci retracement level and confirmation of break of pivot high at lower time frame. Wave length is taken from previous 60m Pivot Low to Previous 60m High.
Rules:-
1) Has price retraced to 38%, 50% or 62% level ?
2) If yes, then go down to lower timeframe chart (say 10 min).. and look for pivot high break on 10m chart.
Apply the methodlogy of "60min flow - " on 10m chart to find the break of Pivot High.
3) Enter with buy stop above the break of 10m PH. Postions size is discussed below..
4)Stoploss, at the low of 10m Pivot low for new position. For prev position stop is still at 60m PL.
5) Scale in another 2NF again when it breaks 60m Pivot.

Remember - number of contract, risk on position are upto individuals trading plan.
Strength of trend can be judged by % retracement that are given.
- If 38% retracement, then very high probability that we will have new high, so I can scale in with 4NF. One can also decide to still go ahead with 2NF add here.
- If 50% retracement, then equally chance of getting new high or making double top, so I can scale in with 2NF. I do add another 2F on break of 60m PH
- If 62% retracement, then quite likely that we will have lower high so I can scale in with 2NF
- If >62% retracement, then probably we are seeing the reversal. so avoid add in


Advantage - this method gives early entry, at comparitively small risk.
It helps in better risk reward as trend gets older. At letter stage of trend, difference between PH to next PH starts reducing so it is required to Add in with certain rules and low risk.

NOTE - This approach is not part of Saint's 60m flow. It is just what I use and thought of sharing the info with the forum.

Happy Trend Trading.

Pivot: We use hand analogy by Saint. Whisk out your right hand with the right palm facing you and fingers pointing up. Comparing the little finger with the ring finger makes a higher high. The middle finger is higher high and low as compared to the ring finger. We therefore have a RALLY. The index finger makes lower highs and lows as compared to the middle finger. The thumb makes lower highs and lows as compared to the index finger. We therefore have a DECLINE. The middle finger with two lower highs on both sides (ring and index) now forms a PIVOT.

In 60 minutes flow we do not distiguish between Major or Minnor pivots. We need atleast 3 complete bars to have a valid Pivot.

Pivot High: same as above

Pivot Low: in the above example hold your hand pointing down, lowest point of your index finger is Pivot Low

Trading with multiple lots gives you big profits but at the same time the risk and hence the losses would be big too. So here in the flow method we enter small and as our trade gets stronger and more profitable we add additional lots to existing trade. We simply call this process as ‘Add’. If we are on Short Trade then we would sell additional lots on ‘Add Levels’. Similarly we buy additional lots on Long trades at ‘Add Levels’. We also add the same quantities as we entered each time. E.g. if we enter always with 2 lots, each add would be 2 lot.

Assuming that we always begin the long trade with 2 lots, and added twice to the trade so our positional size now is 6 lots (= 2 + 2 + 2). On hitting the SAR now we would sell 6 lots and also enter a new short trade with 2 lots at the same point of time. To achieve this we would set a Sell order for 8 lots at SAR levels (i.e. Selling 6 lots for current long trade + Selling 2 lots for new short trade). Same thing applies for short trades.

‘Add’s are done with appropriate filters, so make sure to apply the correct filters based on the Stock/Future/Index.

Each time you add to your existing trade the affective average price of your trade changes, and also the risk you are carrying. So it’s advisable to add only when you are comfortable with the risk you are carrying. But it is very important to add to the trade as your profits would multiply if you have added at right place and right time. Basic idea here is to keep your risk constant at certain value at any point of your trade (i.e. 10,000 Rs) There is a excel file which would help you to analyze and track your position called ‘60 minutes flow tracker’.