Trading With The Flow!!!

Opening up this thread to any queries on the EOD Reversals in the 60min Flow Method.

Saint

Thanks Saint for the detailed write up on EOD reversal.

One of the questions which I put in the morning remained uncleared, i.e., should we reverse to original position when prices go back above the reversal point much earlier in the day, say, we reversed at 11 am and then at 1 pm the prices go back to that pivot again and cross it — should we not reverse then? — essentially the breakdown had occurred and then failed — we should reverse, I think.

The emphasis on last 2 - 3 minutes of the day in not understood. Reversal, if it occurs, any time of the day has to be taken, is it not?

Bee

Thanks Saint for the detailed write up on EOD reversal.

One of the questions which I put in the morning remained uncleared, i.e., should we reverse to original position when prices go back above the reversal point much earlier in the day, say, we reversed at 11 am and then at 1 pm the prices go back to that pivot again and cross it — should we not reverse then? — essentially the breakdown had occurred and then failed — we should reverse, I think.

The emphasis on last 2 - 3 minutes of the day in not understood. Reversal, if it occurs, any time of the day has to be taken, is it not?

Bee

For these situations the reversal is only done at EOD.
Lets say we reverse to shorts due to break of PL—f. Now in the process of formation of a lower PH, price might start trading above the PL that it had broken. So, how many times and on what conditions do we keep on taking the reversal of trades. So, for the day we take reversals as per the rules that we already have in place in the method like pivots, or breakdown failure etc. Just because the price is trading above the pivot during the day does not mean breakdown failure.
At EOD since the markets are about to be closed and between the close and opens we have gaps, we expect the gap to favor us in case of EOD reversal, since price during the close gave us that hint. Hope I have been able to make things clear.

Kapil

Ohh Yes Kapil,

I see now. Fantastic. Crystal clear now. Should have got this on my own!!!

Thanks a lot

Bee

This question might be silly.. kindly bear with me..

For eg: Yesterday in Aban we had an EOD reversal. We had been in long and gone short with the break of previous pivot low-f. Now the prices bounce back and it crosses the pivot which made us short. So we have to go long at the last 2 or 3 mins with the original position we had in longs(initial + adds).

My question is at what point do you revert back to longs. Any specific price or the price which is being traded at the last 2 or 3 mins.

Thank you,

amrutkumar

Great Question Amrut, no silly questions at all in this section…
We decide the EOD reversal about 3-4 mins before closing, at that point its whatever price we can get. If its 3:29…market order! :)

Hope its alright for me to answer, just noticed this is Saint Sir's section….

MJ-

Yeah.. I understand now.. We reverse with the price what we get in last 3 - 4 mins.
Thanks a lot MJ.

Hello all,

We reverse for several reasons like pivot breakout, 2 bar rule, WRB rule. does this EOD reversal apply to all types of reversals ? like 2 bar and WRB ? let us say we are short now and reversed to long at 4156 which was our 2nd bar high plus filter. 2nd bar high was 4136. now nifty starts going up and down and finally trying to close at 4127 which is below 4136, so we should again reverse to long with full position ?

Thanks

Hello all,

We reverse for several reasons like pivot breakout, 2 bar rule, WRB rule. does this EOD reversal apply to all types of reversals ? like 2 bar and WRB ? let us say we are short now and reversed to long at 4156 which was our 2nd bar high plus filter. 2nd bar high was 4136. now nifty starts going up and down and finally trying to close at 4127 which is below 4136, so we should again reverse to long with full position ?

Thanks

EOD reversal applies to reversals on pivots only.

Saint yesterday I read your latest Blog about Cutting Losses and Letting your Profits Run, every word of it is true to a every trader who has ever traded the Mkts., thats the river which seperates the winner from losers but cannot help having a few doubts.

In your 1st Blog about Letting the profits run, you described a Trader who had x x x x 2x 3x loosing trades before he finally got what could have been 10x winner but this is where doubt arises. All of us have been in this situation where we have 7x or even sometimes 10x down waiting for that Bumper Trade to come but there's a catch what if that Trade doesn't come even after 15 x loss or say we have had a series of losses which has already got us down 10x then a winning trade of 4x and then again series of losses which takes us to 15 x, so now we are in a hole and rather deep hole (think of trading with 2% capital risk on each Trade). Now we have only 2 options left, keep on Trading and wish that Markets will take us out of hole or Just stop when you loose 10% of capital.

This question has always been a dilemma more than a Single Trade i.e. this series of loosing trades.

Saint please give a thought to it because this question decides how we take our Trading in unavoidable Loosing period. Whether Trader lives to Fight or He misses the Big Bumper Trade that was coming after this loosing streak. I myself have been guilty of leaving the method at most inappropriate times and seen the chance to get much profitable go in thin air.

Just need your suggestion about when do we actually STOP

Saint sir still waiting and waiting for reply

Sorry Prabhjeet….shall answer in a few hours.

Thanks.

Saint

Dear Prabhjeet ji ……… Nice Qustion you have … let wait for Saint to reply

Mean while my view …..

Flow method was designed to be in market always and who ver taking all trads in a month is in profit ……….But everytrade is depended on other trade during the month

But As you have Said earlier if one take a break what ever may be the reason then he might lose a big winner ……its valid

Lets then define a time period best suited for 60 min flow what i mean is we take cues from higher time frame say Daily/weekly and perticular thing/patterns happen in higher time frames ….then it will lead some move in 60 min time frame and we will catch the move by 60 min pivots …….

In this way we try to find out when to trade yes here i dont say 1 trade ……… i am saying a time period say a doji happens in weekly/Daily chart and we jump to trading with our 60 min pivots we trade for say next 3/4 trades and sum shud be profitable …..

In this way we are indipendent of contineus trading Even next oppertunity arieses and you bussy in some thing let it go as it has no impact on your monthly profit loss balance ……..

I am in search of these type of situation arises in 60 min flow taking cues from higher time frame which can be traded indipendently

Hope I am clear what i am trying to Say ……

Hope Saint /You and other give some sugestion about this …………

Very well said Satya, I think Saint's views will be on more or less same lines

Prabhjeet,have noticed over time with the 60min flow that it is best to stay with it through thick and thin…….personally would play multiple in different timeframes.

But if you want a period of staying out of the Flow,probably you could use the Daily and seeing that it has gone into a sideways stay out of the 60min trades…..but I think,that way,you will lose less but gain less as well and miss a contrary to expectations move.

Saint

personally would play multiple in different timeframes.

Saint,
Could not get this?
Bee

Bee,something of this in the latest blog…..basically dont play only one stock in only one time frame.And not just 60min Flow,or just ambush.

Saint

Oh Ok Saint. Thanks. That is very true.
Bee

Kapil/anyone
This is very exasperating but where does one find the link to a particular post (to copy and paste in another post as a direct pointer).
Bee

Kapil/anyone
This is very exasperating but where does one find the link to a particular post (to copy and paste in another post as a direct pointer).
Bee

Click on options below the post, and then on "permanent link". Like link to your post is
http://tradersaint.com/forum/t-142943/q-a-on-the-eod-reversals-in-the-60min-flow#post-548234

Kapil

Thanks Kapil
Knew it would be some such simple thing but kept right clicking the permanent link and trying copying it from the pop up there - nothing happened. Guess that is a misleading glitch here.
Bee