Q&A on Failed Breakouts/Breakdowns in 60min Flow!!
Opening up this thread to questions on Failed Breakouts and Breakdowns in the 60min Flow!
Happy Trading!
Saint
Q&A on Failed Breakouts/Breakdowns in 60min Flow!!
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Saint,
The query is in the chart.
Thanks
Bee
Unfold
Re: Q&A on Failed Breakouts/Breakdowns in 60min Flow!! by 
beethovenwithsaint, 14 Apr 2009 18:26
Hello Saint,
Refering to your post http://tradersaint.com/forum/t-142942/the-60min-flow#post-447720
check the following chart and the green arrow shown.
Is it the example of the 2 bar breakout failure? Do we reverse below the black candle which causes the reversal?
Also at EOD, does it qualify EOD reversal? Just trying to understand the EOD reversal (So far I am not using it)
Kaiser.
Hello Saint,
Refer to the charts
Are these the e.g. of 2 bar breakout failure?
If yes then it does not give the opportunity to reverse.
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.
Yes,it is a 2 bar breakout failure……and yes,the tail and the final close means that we would have reverted to longs on EOD Reversal as well……….the next day gapped down but we are still holding longs through the next day,and the next and then the gap up.
Saint
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
Saint,
In breakout failures we dont reverse below the low of the failure bar but we wait till the latest pivot is cracked……but in 2 bar breakout failure we reverse at the low of failure bar -f . Why this difference in the way we approach these failures ? Do you consider 2 bars breakout failure to be more powerful and definite reversal than the normal breakout failure ?
Regards,
Smart_Trade
Are we having breakout failures/2 bars breakout failures in NF,Bank Nifty (more clear if one looks at 30 min TF) and RIL in the last bar on 13-4-09 ?
ST
Saint,
In breakout failures we dont reverse below the low of the failure bar but we wait till the latest pivot is cracked……but in 2 bar breakout failure we reverse at the low of failure bar -f . Why this difference in the way we approach these failures ? Do you consider 2 bars breakout failure to be more powerful and definite reversal than the normal breakout failure ?
Regards,
Smart_Trade
ST,
I think the close of the failure bar is the deciding factor. Your question is a corollary to what I have asked above in my query.
Bee
Unfold
Re: Q&A on Failed Breakouts/Breakdowns in 60min Flow!! by beethovenwithsaint, 15 Apr 2009 04:32
/forum/t-146961/q-a-on-failed-breakouts-breakdowns-in-60min-flow#post-
