Once again,great eye,my friend……and some great finds.Yes,both are 2 bar breakout failures,and both of them requires us to reverse on the very next bar low…….but the question you asked is a great one.What would we do if this breakdown was the last bar of the day?
No real definitely right answer to that one….but I must thank you for posting both these charts……because there are only 2 possibilities,and both are represented in the charts above.Both are bearish bars that closed within the pivot high-low range,but the first chart is more decisive than the second…….The first negated both breakout bars,and nearly took out its pivot low as well……….I will reverse to short.It is a judgement call at the end of the day,but that bar gives me more reasons to reverse than not.The second chart however also crosses the pivot high-low range but not confirmed,negation of one bar………I would still be holding on to longs and the gap down has to be dealt with as always.
Just one thought, can we close the existing position and wait for next day to re-enter(Say first 5 min bar high/low)? This is actually against the basic rule of the flow-trade.
Kaiser.
No harm in it,but that can be more of a personal variation more than the method itself……..but even if you do it,make sure that you do it only in certain select scenarios.The 60min Flow benefits greatly from the gaps in our favour and managing the gaps that aren't,so try to bring down anticipation to the lowest………..but no harm in tinkering with that idea and formulating certain rules for certain scenarios.
Great stuff,great questions,great charts…………well done,Kaiser and looking fwd to more.
All the best!
Saint