The "Flip" Trade (support and resistance changing roles)

[walterw]

As the flip aproach is evolving on my analysis, observation an "yet" virtual trading... I am find a great amount of nuances to this trade...

I know that when we start to add nuances "maybe" its a great oportunity to complicate things and start transforming a great idea into a great inferno...

I proposed myself not to do so with flip trades, all of the contrary, the idea is to keep "flip" trades as simple as posible...

I know most normal traders would share a complete finished idea of a particular trade... as I am not that normal, I took an idea and started developing it in front of the public... so you will see that "flip" may experiment some slight changes to get to the final product I would like to see here... and obviously that product should be adapted to each individual personality as they feel confortable with it...


Now let me share this "nuance" that for me probably will be transformed to a "rule".... as you know the "flip" trade is formed by two clear pivots, 1rst pivot creates the level where we will have a break and later a 2nd oposite pivot forming the "flip" itself....

My nuance/rule is : "1rst Outerband Pivot , 2nd Mid Band Pivot " From now on the "Level Rule"...
What I mean is that the 1rst pivot should be formed at the keltner outerband area.... then the break of the level would make us travel at some above/below level of that outerband sugesting momentum and here come the incredible mathematic and maybe geometric fenomena that when we get to the flip level to create the 2nd pivot we are right at the Mid Band... ¡¡¡

It happens over and over again... I will post you all the examples possible ahead.... but its just that way, you form the first pivot at the outerbands, then travel all the way to the mid band to make the "flip"...

Whats the edge of this rule ? well maybe its the fact that on this levels we are touching momentum areas... and the flip is charged with a more dynamic market condition compared to the fact that if the outerband pivot never got broken to make a flip then the market never got any momentum at all and would be convenient not to trade on that congestion condition....

So I attach some examples from today.... cheers Walter.

[walterw]

Here are some other examples from previous posts... that take the level rule into consideration... cheers Walter.

[walterw]

Here I add another graphic explaining the overall area concept for "flip" trades... good trading today, cheers Walter.

[walterw]

Today`s first 75 minutes of session delivered this flips, the first two dont have the level rule, the third did have it but got stopped...

I am experimenting also some diferent posible way of timing entries on the price pane with two Linear Reg averages 6 and 25... their crossover could give some nice decent entries... cheers Walter.

[walterw]

This evening is delivering some nice momentum.... a nice momentum flip has been clearly formed... in terms of exit as we have a momentum climate I would keep a runner above the white keltner band.... cheers Walter.

[walterw]

As this week starts, I feel "Flip" more part of me, so since today I am trading this live...

So far I think I got a clear argument with clear entry rules, stop rules and exit rules....

The "momentum level" nuance so far has given the best trades to select from so many oportunities...

So far today we had one nice momentum flip... first we got an outerband pivot, then a small break and FLIP... got in on a ZLR fashion... scaled out a scalper exit with HFE 2/3 position and closed entire rest at the 0 line cross...

Personally on live I am done for today... but will paper trade the rest off the session.. cheers Walter.

[walterw]

And here is todays second one (paper).... chart looks so similar to the first one... I like that "Momentum levels" it gives me good ods to enter on strength climate... my runner is something to add here on my exit strategy...

I will use that runner only on momentum levels flips.... so far so good... cheers Walter.

[walterw]

Late on the day we had a series of flips .... this ones are exactly with the level nuance... forming pivot at outerbands, flips at mid band...

So far I find the most reliable setup with forming pivots at the outerbands...


I am also experimenting diferent timing posibilities at the price pane... so far a very nice combination is the least square ma 6 (yellow) with a simple ma 7 (light grey)... their crossover can be used for timing....

cheers Walter.

[neustaju]

To Flip Trader: Great job on noticing this price pattern. Reminds me of Elliott Wave when wave 4 finds support/resistance at wave 1. Unless you get no commission/fees put away tick charts and pull out a 15 or 30 min chart. Look at past price history for several days and see if your same trading strategy can be applied. Make fewer trades and only enter based on long term analyisis because it limits your exposure to risk.

[walterw]

neastaju : yes ¡¡ this aproach can be adapted to any time frame and type of trading.... medium/ long term... I presented the idea as a scalper I am but can perfectly be adjusted to the more long term trader.... feel free to add charts with the strategy applied to longer terms, would love to see how other people can use the overall concept in diferent time frames...

cheers Walter.