Going with the Intraday Mini-Flow!!

Saint, a query :
Did you analyse the movement of Nifty/Nifty futures or sensex or also some stocks or futures of some stocks also???
Thanks for this yet again an excellent effort to teach us to 'fish'!!!
Regards
R K Karnani

THE METHOD:

As always,a Method......hoping to let Art remain Art still.......

AIM:The aim is to trade everyday,and if all goes well,to trade between 10am and 3:25 pm............to trigger without thinking if triggers are hit,trail stop without thinking because that is our Plan,to exit without thinking if stops hit.

PERSPECTIVE:None........no analysis about multiple time frames,and if that is up,then we are up.Once again,reiterating:Trading in line with perspective is not wrong at all...Trading the 5 looking at the direction of the 60 is a great way to trade.....This one is just another way!

TIME FRAME OF TRADE:The 60min chart.... ..... Lol,right about now,a few people are hurling abuses at me!60min charts and Intraday,Saint are you mad??!Probably......but am not interested in smaller time frame trading,and pulling out Rs30here and there and losing Rs50 here and there and landing up the end of the month with Rs10k and feel that one has done something great.Not interested in smaller time frames because it just is not as beautiful flowing as the 60min charts......So,60min charts,it is!

INDICATORS USED:If Volume is considered an indicator,well,I have a look at Volume,.....although I doubt if any major decisions would be taken by me based on the Vols alone.

CHARTS:Candlestick charts.......just because it gives me better visuals,and a particular pattern that crops up on the 60 helps with the Reversal days.

ENTRY:Allow the 5min bar,the first of the day to form......go long if the high + filter is taken out.Go short if the 5min bar low is taken out.Again with a filter.

STOP LOSS:Same as filter.....I put Rs 9,not too much concerned about the distance,the Rs9 has saved me from many a bad trade,so sticking to it.......what is best suited to you,after testing,do that.Basically short the first bar with a stop loss at the bar's high +Rs9 if the first bar breaks to the down.Buy the first bar high with a stop loss at the low of the bar -Rs9.

TRAIL STOP:Let us take the trade as long so that I don't have to repeat the same thing twice.......basically vice versa for shorts.......The second bar of the day(60min bar) puts in a Hgher high and higher low(hope you get it,not higher pivot high and low......just higher high and low.Now the third bar puts in a higher high and low.Move stops to the low of the 2nd bar's low -9.Once the 4th bar makes higher high and low,move stops to the low of 3rd bar-Rs9......In essence,at the start of the next bar(not completion),move stops to the low of the previous bar.

Note:In an uptrend,the lows are being carefully monitored.......in a downtrend,it is the highs that are carefully monitored.In this method,we do not care about uptrend and downtrend.........we care only about rally and decline.But the rules are the same.......RALLY:Monitor LOWS.DECLINE:Monitor HIGHS.

STOP AND REVERSE:We are looking to stop and reverse in most cases except a few........and the exceptions will be added here later.

ADDS:No adds except in a clear trend move........we have a rally in an uptrend on the 60,just formed a wrb,or we get a pivot on the 60min,and the Pivot Highs are taken out,we are doubly sure about the trade.....yes,we are looking to add.Most often than not,we are looking to stay put with our initial posns.Unlike the 60min Flow,only one ADD after initial position,and then it's all trail stop.

PROFITS:If long 6 lots,with a stop loss Rs50 away,once we get a Rs50move,will take off 2 lots ....unless we get a blast off move.Then I am sitting pretty with 10lots till the end of day.

At the end of day,there is pulling out of positions .......basically because want to be out of all before close.So no real rationale as to why there,and not Rs2 ago.

EXITS:Exits are on hitting Trail stops,......at the End of Day.......or taking profits off the table on a weak move up within a dntrend and reversing once the down move starts.

TRENDS:There are days where there is a one directional move........we do nothing and keep moving our trail stops down.Then there are days that give us a 2 directional move,we enter the trade as planned,our trail stops are hit,and we reverse.Then there are days where there is a 3-directional move.....will be frustrating,we get in in all three,and probably end the day with losses,but stick to the Plan......there really is not clear knowing what type of move that can happen that day.So take 'em all.......

POSITION SIZING:Take the total amount of capital.......risking 1.25%-1.5% per trade.Enter with that many contracts as is calculated....I tend to take 3 positions simultaneously,but risk on capital not more than 4%.Trade lesser contracts if must,and cannot manage the heat.



Last word of advice:If you notice,we are not trading lower time frames,and so don't panic on a rally on the 5 and you are holding shorts......stick to the Plan.And another thing:We are not trading Pivots here.........we are trading it Bar-to-Bar.Of course,a 60min Pivot break only adds weight.And a 60min entry means we enter later,make less money in that trade as compared to the guy who spotted that move on the 10min charts.But we also tend to lose less as compared to the 10min trader.........more of,Slowly but Surely.

More later.......need to get a bite!

Saint

Thanks Saint for the new direction.

I have been long trading the ORB : Opening Range Breakout on the Nifty and have noticed good success in the same. I am sure this method will will be great for all traders.

I have noticed that the ORB works most wonderfully after a huge gap.

tks again

Wow! The more food Saint is serving, the hungrier I am starting to feel.

Thanks for this wonderful treat on Sunday

I hope Saint's wife doesn't start hating us, we are always on his tail

You keep the tail, I will keep the rest of him

Saint, Great System.

I am trading the ORB. On Friday I was also long on LT and LT is my favorite for the strategy. My philosophy for trading ORB is - About 70 to 80 percent of days, either the High or Low of the day is formed within the first one hour of trading. But it is not valid for all scrips. Volatile and generally trending scrips are good for this observation. I add some filters and trailing SL to get the maximum out of it. Still experimenting to improve the methodology.

Regards

TRAIL STOP:Let us take the trade as long so that I don't have to repeat the same thing twice.......basically vice versa for shorts.......The second bar of the day(60min bar) puts in a Hgher high and lower low(hope you get it,not higher pivot high and low......just higher high and low

Saint ,is there a typo error here ? Do you want to say higher high and higher low ?(instead of higher high and lower low mentioned in yr post )

If yes,pl correct it if no sorry for having interupted the flow !!!

Best Wishes,

Smart_trade

How to find such scrips? Seniors I am not looking for spoon feeding but please tell me how does a relative beginner should get a list of such stocks, who is not so well verse in chart reading. I have gone through "teach a man... compilation'.

Ok maybe I will pick out some stocks and you people can help me which of them need to be avoided.

Regards,
Nikhil.

Nikhil,
A month ago a senior advised me to go for high beta stocks. You can find a list of them in NSE site. I saw the list. I lost the link ever since I had a problem in the comp. Sorry not much of help.

If some one has the link pl give us.

vps

Hi Nikhil,


Study the charts of scrips traded by Saint,find out common characteristics such as trending nature of the scrip,its daily range,clean flow etc and apply these parameters to your list.You will be able to shortlist the scrips yourself.

Best Wishes,

Smart_trade