LIBRARY : Intraday Mini FLow

TFL

Well-Known Member
#1
Intraday Mini-Flow Startup Guide
All Posts Under Construction...



AIM

To trade everyday from morning to evening.
Most of the time we will be in a position.
Trades are mainly done in futures market due to the high liquidity it offers.
NIFTY Futures is our main inventory to trade.
Many are also trading in RIL, L&T and in some others.

TIME FRAME
30 Minute Time Frame by taking 60, 20/15 as perspective.
Entry on a particular day starts by the help of the first 5 min bar. But no further consideration for 5 min charts.
Note:
Charts and Time Frames
Normally we are flowing like...
09:55 to 10:00 - 5min Chart.
10:00 to 11:00 - 15min/20min Charts.
11:00 to 15:00 - 30min with the help of 60min and 15min/20min Charts.
15:00 to 15:30 - 15min/20min Charts.

CHARTS
Trading is done based on Candle Sticks charts because of the visual clarity it provides.

ENTRY
We enter the trade by watching the highs and lows of the first 5 min bar.
After the first 5 min bar is formed we take trades as per the clue it gives that is,
LONG if HIGH of 1st 5 min bar is taken out with a filter.
SHORT if LOW of 1st 5 min bar is taken out with a filter.
This filter is applied to prevent us from wrong signals which most times generates.
The value of this filter varies according to the instrument we are trading.

STOP LOSS
Stoploss will be below the first 5 min bar with a filter for longs and above first 5 min bar with a filter for shorts.

TRAIL STOP
We update our stoploss to higher pivot lows and to lower pivot highs in case of shorts.
If we get 4 bars up/down on 30 min chart having HH and HL for each bar for longs and LH and LL for shorts we will update our stops to the low if of 2nd bar for longs and 2nd bar high for shorts respectively.
All these are with a filter applied to it. We also need confirmations from higher time frames to consider for a stoploss update.

Trail stops only on higher pivot lows in longs.......trail stops to lower pivot highs in shorts. If you get strong 4 bars up on the 30 or more, move the stop to the low of 2 bars back. Same as the 2 bar method we employ in the 60min Flow. Only difference is use this only after we get 4 bars up. And if the 5th bar makes a new high, then trail stop to 3rd bar low, so on so forth.

Suppose, we got a pivot and also the 4 bars and the pivot stopsloss and 2nd bar stoploss are nearer to each other then we should be giving priority to the stops set using pivots.

STOP AND REVERSE (SAR)
We will reverse our position upon hitting the stoploss.

ADDS
We usually have only 1 add to the position here in mini-flow but in circumstances like a momentum move, a big WRB's, we may take one more add.
Our total no. of adds should not be exceeding the total no. of entry position.
1) For example if we get a breakdown from the first bar (30 min), and we get a strong definite close of BAR 2 to the down, our ADD is at the low of BAR 2.
2) Next ADD is only on a clear cut pivot break on the 20/30.

PROFITS
No rules for profit taking, but should take profits with once own rules.
A fixed point profits, taking at a specific percentage, on resistance lines, etc
The newer trend is to take profits at/near Resistance lines.

EXITS
Exit when SAR hits or end of the day as we are not carry forwarding out trades to the next day.
Also, takes profits and being out of trade with out reversing when we see a weak move up within a down trend.
In such a situation we reverse only once the down move starts.


*THINGS TO CONSIDER*

MOVING FILTER
BAR 1--High of 4325,Low of 4275..........we want the next bar to break past 4325+14=4339.Or go down below 4275-14=4261

BAR 2---High of 4335,Low of 4295.........we are still not in. We want the next bar to break past 4335+14=4349.

BAR 3----High of 4346,Low of 4322....still not in. We want the next bar to break out of 4346+14=4360.Or the low of 4322-7=4315 to get taken out.

BAR 4----High of 4355,Low of 4312......we are now in short.

The Rs14 moving filter is to extract a "Either we are getting that big move, or we are not interested" out of that opening bar.

Also, if you noticed that the short is at Rs7 ..........because it is Move no 2 of the day. We got out of trading Move no 1,from Move no 2 onwards, it is Reversals at Rs7 and adds at Rs5.

Only that first move do we put in that Rs14 and move it bar by bar daring it to take that price out...........rest of the day, no moving around the values.
First Move, Second Move?
We are looking to enter trade by considering +/-14 as filter to the high/low of the first bar.
Suppose,
(a)The 2nd bar made a higher high with respect to the 1st bar but failed to break the +14 filter. So we are not entering long.
(b)The 3rd bar now made a lower low with respect to the 2nd bar.
Now, we got 2 moves or a possible direction change. Here (a) is the first move and (b) is the second move.
For this second move we will be consider 7 as filter instead of 14.
REVERSAL
4 Bar Rule
Conditions for 4 bar rule to apply.
1. Chart Time Frame: 30 Minute.
2. Min no. of 'Completed Bars' needed: 4.
3. Each bar must be HH, HL for longs or LH, LL for shorts.
If the above two satisfies, then move SAR to the low of 2nd bar in long positions and high of 2nd bar in short positions.

Eg: For Long positions.
Bar 1: -------
Bar 2: HH,HL
Bar 3: HH,HL
Bar 4: HH,HL(completed bar)
Shift SAR to Bar 2's Low.
Bar 5: HH,HL (No need for completion of this bar provided, the bar satisfies HH HL)
Shift SAR to Bar 3's Low
Bar 6: HH,HL (No need for completion of this bar provided, the bar satisfies HH HL)
Shift SAR to Bar 4's Low
----goes like that---

Note:
Inorder to apply this 4 bar rule we need the 4th bar completed in 30min.
There after the 4th bar we don't need the bars completed to shift SAR to the bar before the last completed bar provided, we get a new high(in case of long) or low(in case of short) from the incomplete bar.
In short, we only need the 4th bar completed to apply 4 bar rule and no need of 5th, 6th, etc to shift SAR to

Exception:
In certain circumstances we will shift SAR to 2nd bar even before the 4th bar is completed.
For doing this we need the below conditions satisfied.
Condition 1: In 60min Chart, We need the 2nd bars high(in case of short) or low(in case of long) same as 60 min bar(last completed bar) high(in case of short) or low(in case of long).
Condition 2: The last 60 min bar should be a Wide Range Bar (WRB).
Condition 3: The negation of that 60 min bar in the very next bar is bullish for long positions and bearish for short positions.
Break-Out Bar Reversal
Conditions for Break-Out Bar Reversal.
updating...
A Mini-Revision
10am:The first bar forms. We have only that one bar to work with.We look to enter Rs14 above the high for a long and Rs14 below the low for a short. Once entered, SAR is Rs7 from low(if long).

10:15am:price goes sideways, SAR not hit.....we remain long(talking uptrends through this whole example).Price goes up. SARs remain where they are....nothing to be done.

10:30am:15min charts put in another HH-HL bar......30min charts put in a HH-HL bar as well. Nothing to be done. SARs remains where they are.

10:45am:Mini-bearish bar forming on the 15min charts.....?Pivot.....Nothing to be done but hold.

11:00am:Newer highs on the 15min charts.....Higher Pivot low on the 15min charts.30min charts show up as another HH-HL bar. So too 60min charts.

ACTION: Raise stops to the pivot low using the 15min charts.........yep, no waiting for confirmation from higher TFs. Why? Simply because we don't have enough information from the higher TFs.

We are in essence trading the 5min bar at 10am,and then trading the 15min charts till 11 am, trading the 30min charts with help from the 60 and 15 till 3 pm,and then trading the 15min charts till 3:30pm.

So, till 11 am, if we get a pivot on the 15min charts, raise stops to that pivot. If there is no pivots on the 15min charts, wait for 30min charts to complete 4 bars at 11:30am.......The 2 bar method kicks in. After the 4th completed bar, every new bar high is enough to raise stops to 2 bars back.

If we get a situation where we get 5 multiple bars up to 11 am on the 15min charts,.......big monster move up, WRB et al,then and then only do we kick the 2 bar method into the 15min charts..........Again, because we have a huge bar on the 60 and 2 big bars on the 30 and SARs still miles back with no help from the higher TFs. Other than this obviously bullish or an obviously bearish scenario, with multiple WRBs........no bringing the 2 bar method into the 15min charts.

11am-3pm:If a move without pivots happen, then 2 bar method on 30min charts from 11:30am onwards. Pivots on 30 are what we are looking for and salivating over......A break above 30min Pivots is a no-brainer. Reverse it there and then. A break above pivots on the 15min charts need confirmation from the 60min or 30min charts. HH-HL is what we see on the 60min charts in an uptrend, simply a break below a previous low is not enough to go short......it needs confirmation from the 30 or 15.

An amalgamation between time frames is required for a reversal..........and another thing: We tend to forget(me included) that a reversal every day is not the norm. Rather there are more days when moves continue in its original direction ....2-3 reversal days ,one after another, and we are all ready to trigger a reversal at the nearest teenie-weenie l'il pivot on the 15min.

(a)Failed breakout pattern
We have a pivot on the 30 or 60 and a WRB breakout followed by a bearish bar more than or equal to 50% of the range (open-close) of the WRB. Reverse if the following bar takes out the low of the bearish bar.

(b)WRB at the end of an uptrend
Usually coupled with big volumes. Wait for the next bar to form. Short below the low of the 2nd bar.
Must read about WRB

(c)Reversal bars(Candlesticks)
Topping tails after an uptrend on the 60min chart, etc

(d)V shaped pattern
No pivots, and the 2 bar would help us reverse.

3:00-3:30pm:SARs adjusted as per the 15min charts if profits not taken off.
Profit Booking Strategy (Variation)
1. 5th BAR Profit Booking
Market goes sideways or takes a correction after 5 bars of trending in any one direction in any time frame.
Always if you are short,it is a good idea to take some profit in 4th bar dip or the 5th bar.
Link
Summarized from Saint's post for getting an overall taste of the system.
More detailing with charts and example trades will be updated in further posts below.

Hari.
 
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TFL

Well-Known Member
#2
FILTERS

NIFTY FUTURES
Entry: 14 from 1st 5 min bar.
SAR: 7 points.
Adds: 5 points.

RIL
Entry: 12 from 1st 5 min bar.
SAR: 7 points.
Adds: 5 points.

L & T
Entry: __ from 1st 5 min bar.
SAR: __ points.
Adds: __ points.

Hari.
 
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TFL

Well-Known Member
#7
ALL IMPORTANT POSTS
by Saint and others.​

Latest Rules(Originally Posted by Saint):
Compiled version(Updated : --/--/----)



Hari.
 
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TFL

Well-Known Member
#9
ABBREVIATIONS

EOD - End Of Day
HOD - High Of Day
LOD - Low Of Day
TF - Time Frame
MTF - Minute Time Frame
PL - Pivot Low
PH - Pivot High
BH - Bar High
BL - Bar Low
SAR - Stop And Reverse
SL - StopLoss
WRB - Wide Range Bar
NRB - Narrow Range Bar


More to come...
Hari.
 
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TFL

Well-Known Member
#10
MISCELLANEOUS

CONTRIBUTORS
Listing here the ids of personalities from where I have taken something for this thread or those who contributed so far.

SAINT (Intraday Mini-Flow System Author)
Will add the rest later...

Hari.
 
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