MOVING FILTER
BAR 1--High of 4325,Low of 4275..........we want the next bar to break past 4325+14=4339.Or go down below 4275-14=4261
BAR 2---High of 4335,Low of 4295.........we are still not in. We want the next bar to break past 4335+14=4349.
BAR 3----High of 4346,Low of 4322....still not in. We want the next bar to break out of 4346+14=4360.Or the low of 4322-7=4315 to get taken out.
BAR 4----High of 4355,Low of 4312......we are now in short.
The Rs14 moving filter is to extract a "Either we are getting that big move, or we are not interested" out of that opening bar.
Also, if you noticed that the short is at Rs7 ..........because it is Move no 2 of the day. We got out of trading Move no 1,from Move no 2 onwards, it is Reversals at Rs7 and adds at Rs5.
Only that first move do we put in that Rs14 and move it bar by bar daring it to take that price out...........rest of the day, no moving around the values.
First Move, Second Move.
We are looking to enter trade by considering +/-14 as filter to the high/low of the first bar.
Suppose,
(a)The 2nd bar made a higher high with respect to the 1st bar but failed to break the +14 filter. So we are not entering long.
(b)The 3rd bar now made a lower low with respect to the 2nd bar.
Now, we got 2 moves or a possible direction change. Here (a) is the first move and (b) is the second move.
For this second move we will be consider 7 as filter instead of 14.
Summarizing today's trade, don't know its true…please comment.
9:55AM
Looked at 5 min till 10:10
Move 1 so Moving filter is 14.
Bar1: 2687/2676 - LONG @ 2687+14=2701 or SHORT @ 2676-14=2662
Bar2: 2685/2672 - Not triggered any trades. Now LONG @ 2685+7=2692 or SHORT @ 2672-14=2658
After formation of Bar2 moving filter for long shifted to 7 and short still remains at 14 (If long is triggering that will be a move against the first bar and second bar flow so it’s Move2 and for Move2 moving filter is 7).
Bar3: 2678/2670 - Not triggered any trades. Shifting to 15/20 min from 10:10
15Min
Bar1: 2687/2676 - This time watched 5 min charts
Bar2: 2687/2670 - Now LONG @ 2687+14=2702 or SHORT @ 2670-14=2656
Moving SAR of 7 is not considering as the Bar1 and Bar 2 are with almost same HIGHS/open/close.
Bar3: 2683/2662 - Not triggered any trades. Now LONG @ 2683+7=2690 or SHORT @ 2662-14=2648
Again, after formation of Bar3 moving filter for long shifted to 7 and short still remains at 14 (If long is triggering that will be a move against the first bar and second bar flow so it’s Move2 and for Move2 moving filter is 7).
Bar4: 2666/2655 - Not triggered any trades. Now LONG @ 2666+7=2673 or SHORT @ 2662-14=2648
Bar5: 2659/2645 - Not triggered any trades. Shifting to 30 min from 11:00
30Min
Bar1: 2687/2676 - This time watched 5 min charts
Bar2: 2685/2662 - This time watched 15 min charts
Bar3: 2666/2645 - Now LONG @ 2666+7(if happened it'll be Move2 )=2673 or SHORT @ 2645-14=2631
Bar4: 2683/2647 - LONG triggered @ 2666+7=2673. Here I entered long with SAR as LOD-7 and booked profits around 2760 levels.
I don't know whether its as wrong or right…have confusions…
Requesting you to review and comment.
Thank you.
Hari.