Re: Trading the 5min with 60min perspective
Hi MJ, I am posting what I have understood and my queries if any!!
musicjunkie;212902]Perspective : 60 mins
Trade with 5 min,
we shall never go against the higher trend, ever
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We take trade in the direction of our existing 60 min. flow trade!!!
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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MJ,If we are trading per Saints Perspective, why not trade the Pivots in 5 minutes time frame rather than the "trend"!!!!
Now The Setup,
The setup is very simple, Supposing the 60 min chart is in an uptrend and is facing a decline now.
MJ, Do you mean that whenever in 60 min. uptrend, we get the current bar closing below the low or breaching the previous bars low we look for a LONG trade in 5 min. chart!!!
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.
I was suggesting , why not buy above the recent PH high, instead of looking for a change in Trend!!! In this way we are looking for Pivots only and not Trends... I vaguely remember Saint saying that its always Pivots over Trend!!
Stop
Is at last PL on 5mins. when we are stopped out, we are out. We dont reverse positions
Agreed wedo not reverse positions as the 60 min flow is still long!!! So we exit below thw PL, do note that in sharp decline we may have consequtive WRB's, we need to have some rule for exit here!!
Filter
4-5 points is more than enough
Request to people who are backtesting to specify whether its 4 or 5 !!
Adds
Will talk about this later, first will get our concepts clear.
Agreed, we talk about it later, maybe if at all we add or not!!!
Reward
We don't have a reward, we have risk. Everything starts and ends with risk. We accept whatever the market is willing to give.
May be you are unable to put it properly!!! We cannot trade a set up which does not have a Reward, only Risk!!! Agree that we take whatever the market is wiling to give, but MJ, we must be sure that in this set up market gave more than it took!!
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
Yes!!!! MJ, that has to happen, the wait has to be worth the wait, this is going to be our reward!!!!!
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
Great going MJ, we sure will be able to put the rules in place and more so with Saint there and willing to chip in!!!
So to summarise
We don't go against trend
we stay in trade until stopped out or until markets are coming to a close
In a 60 min uptrend which is facing a decline we look at 5mins and buy as soon as the dowtrend turns to an uptrend.
That's all, very simple.
MJ, as you have been following the set up, and as you said, have not been trading it, why not eye it as 'following the trend' with the pivots rather than the traditional way of seeing the trend!!!! We are slowly getting used to 'seeing' the pivots so why not use the same method here too!!!
All the best!!!!
R K Karnani
