The flow technique works on only one principle, be with the trend or properly put Flow with the trend. The basic technique in indicated in the above chart. the market moves in waves if the each successive PH is higher then we are in up trend and if success PH are lower then we are in down trend.

We are in an uptrend or we are long and the market moves in series of higher PH and PL we hold on to longs till this sequence is maintained once the PL is taken out we close our long positions or go short. So we wait for the PL to be taken out in an uptrend to reverse/close our position. SAR always is at the PL.

We are in a down trend or we are Short and the market moves in series of Lower PH and PL we hold on to shorts till this sequence is maintained once the PH is taken out we close our short positions or go short. So we wait for the PH to be taken out in a down trend to reverse/close our position. SAR is always at PH.

PH- Pivot High , PL- Pivot Low, SAR- Stop and Reverse

M.Mahiidar

Enjoying Life

Trend is Friend.