iCharts Discussions

[musicjunkie]

Well, If somehow we were short, we reverse to longs above the high of the 5min bar.
However We were long, unfortunately without any adds, but trade going on okay so far.
Id like you to upload a chart with trades marked, If its wrong I'll consider it my failure, but please so find the time to upload a chart.

Regards,
MJ

[RKM]

Hi MJ,

I liked the essence of your reply - ie. just follow the rules, -- if it says reverse, then that is what we have to do, no matter how big the gap.

MJ, please don't consider my wrong trades your failure - in fact I have not yet started the 60 Min flow, maybe I'll start doing that from next week. Right now I am testing the waters so to speak. But I think the trade levels are like this:-

1. Reversal/ adds to longs on gap opening on 4.05.09 should have been at the 5 Min candle high of 3630+filter (=3645),

2. PH on 4.05.09 - 3662,

3. PL on 5.05.09 morning - 3623,

4. PH on 5.05.09 - 3694,

5. PL on 6.05.09 morning - 3643,

6. PH on 6.05.09 - 3728,

7. EOD Reversal probably not achieved as Stop should have been at 3618 (3643-15)

Not too sure about the last one, though. Correct me if I am wrong. There must be a way to protect you from that free fall.

Best wishes and keep smiling. It's the smiles which inspire and keep us amateurs going.

Cheers,
Makhijani

[musicjunkie]

Absolutely correct. We are now short , EOD reversal did not trigger. Although today, yet again, looks like a reversal day.
Bank Nifty had a good trade though
Rel still long.

MJ

[RKM]

Dear MJ,

Now I am confused. We went long or were already long at 3645 after the gap opening on Monday, 4.05.09. Since then the Nifty has been making higher PHs and PLs. The EOD reversal did not trigger on 6.05.09. So how come now we are short? Looks like I missed an important trigger.

Need some light.

Makhijani

[kapilanand]

[RKM]

Hi Kapil,

SAR on gap up opening on Monday, 4.05.09 at 15 points over high of the first 5 min candle - 3645 (3630+15) - basically this is meant only for someone who was short earlier, to reverse to longs. Or, it could be seen as an opportunity to add to the position, but for that I think MJ would prefer a Stop of 3537.

You can read my full post a bit lower down.

Best wishes,
Makhijani

[kapilanand]

[musicjunkie]

short? where?
We were long NF on monday, added to longs above the 5min high, shorted yesterday below PL.

I think i posted a chart.

[Stockhunter]

[RKM]

Hi MJ,

Could you please tell me what was your PL level yesterday, 6.05.09, where you shorted? And no, you have not posted any chart.

Best wishes,
Makhijani

[musicjunkie]

Thank You SH.

Shorts were taken at 3642-Filter on 6th May 2009. Still short with stops at ttodays 11 am bar high which is 3682+ F. That missed, still short, now three things can happen tommorrow.

Gap up, above our pivots/stops....wait for the 5min bar to form and reverse above it + Filter.
Gap down, great, if its down in new territory add to shorts below the 5min bar.
Flat open stops at the high of 7th May.

Hope its clearer now.

Regards,
MJ-

[RKM]

Got it now. Thanks, MJ, my mistake.

Makhijani

[Stockhunter]

Hey MJ - assuming one started using 60 mins flow system from today morning, I am posting the charts of today.

I will paste the same chart on TS from home tomorrow morning if my home PC allows me

but for the time being.. posting here ... please check and comment. I want you to be as critical and picky as possible on any wrong moves.. ok?

Every green line is a buy initiated (or adds) and red line is the SL. If in sells, every red line is sell initiated (or adds) and green lines would become SLs.

Todays trades as per my understanding :

Trade 1

10 AM bar high 3552 breached by 11 AM bar .. Longs initiated at 3570 (assuming 18 points filter). SL below 10 AM bar low + filter or 3538-18 = 3520

Trade 2

2 PM wide bar, high of this bar was 3641. Added one more long at 3641+18 = 3659. SL moved to 1 PM bar low - filter or 3546 - 18 = 3528

Day ended on high note, holding both longs.

waiting for your inputs. Depending on your inputs, I will ask a few things since to me the SL for second trade is too deep?

Cheers
SH

[musicjunkie]

Hi SH,
Great your posting charts to understand the system. You are doing great, just wanted to get a few things straight.

The role of the 5min bar

So lets see, our trade revolves are a point, or a series of points...which we call a Pivot. Pivot is basically a resistance area, crossing of which means there are no sellers....
Now lets suppose we are short. Our stops are at (say) 154+5....market opens at 143, high of 5min bar is 144. Do we do anything? NO, we just put our reversal order, keeping mm in mind at 154+5.
Now when do we look at the 5min bar? When the 5min bar is over our pivot. So if one day we are short, market opens above our pivot, that is above 154, we wait for the 5min bar to form, and go long above the 5min high.

So cutting the above story short, we use 5min bars to reverse ONLY when they are above our pivots (for longs) and below our pivots (for shorts)
-------------------------------------

Now lets look at your chart. We are short as of yesterday. Market opens we are hholding our shorts, above our SAR? No not at all, infact opening is slightly lower....great...once our 5min bar finishes we have our stops using the 2 bar method trailed to the 1300 bar high , 3608+ Filter. So as soon as price hits that point we are long. It hit and we are long.


We reversed using 2 bar today, and holding our longs.

One request SH, IF you could kindly re-post the chart on today's trade, If not clear, let me know I will post it before opening tomorrow...Have to run now...

Regards,
MJ-

[Stockhunter]

Thanks MJ .. understood the role of 5 mins bar now... I assumed we start trading from today hence took 5 min bar as the starting point.. but yes if we are carrying trades from yesterday 5 mins bar becomes crucial only if there is a huge gap up or down beyond our pivots...

I am posting the updated chart for today assuming we were short yesterday and carrying overnight to today morning...

However, 2 Bar method... can you elaborate please why 1300 bar is our 2nd Bar? I thought 2 immediate previous bars are to be considered?

Also, am I using the right filters and stops in this trade?

Cheers
SH