Showing posts with label Flow rules. Show all posts
Showing posts with label Flow rules. Show all posts

Sunday, September 21, 2014

All might be wondering, when i would be giving the rules of the flow technique. From this week onwards i would furnish the rules under the label flow rules.
First and fore most is the identification of pivot highs(PH) and Pivot Lows(PL), once this is perfected nearly 60-70% of the learning would be over. This has to be mastered if we have to master the flow.

One point to be note is that there would be alternation between Pivot highs and lows. Pivot high would follow pivot low and and vice versa. But there would be now two consecutive PHs or PLs 

Rules for identification of Pivots High

1. When the subsequent bar moves below the low of the previous bar - then we have to identify the pivot high.
2. Pivot High(PH) would be the highest point after the pivot low. 

Rules for identification of Pivots Lows

1. When the subsequent bar moves above the high of the previous bar - then we have to identify the pivot Low.
2. Pivot Low (PL) would be the lowest point after the pivot low. 

i have explained the same in the chart below.


for clarification of same you can post in comments which i would reply.

M.Mahiidar
Enjoying Life
Trend is Friend.

Wednesday, August 20, 2014


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.



Tuesday, August 19, 2014

The flow technique i follow is a trading method which i implement in Bank Nifty future. It can be applied to any other index or also stocks but it should be applied irrespective of the state of the market or the expected state of the market. The method uses 30 min time frame, can be applied to any time frame. I apply and trade in 30 min time frame in BNF mostrly in BNF only i which its comfortable for me. I have applied in Nifty also and it worked as accurately as it applied in BNF. We apply to it in 30 min time frame and we are always in trade irrespective of state of trade. If we are long, and the system gives a sell signal we close our long position and take short position and vice versa. So we are always in trade that is the first rule. other rules of trade i would furnish daily and when ever its required over a period of time i would furnish all the rules.

M.Mahiidar
Enjoying Life
Trend is Friend.