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walterw

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

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Hi,

 

what are the setting of those channels?

you only take long trades in the upper channels?

 

Hi Mail, that is a 55 Tick chart of Russell with a 100 keltner exponential 2.5 atr (white) 5 atr (black)...

 

yes, I look to go long on the upper outerbands flips and short on the lower outerbands flips.... cheers Walter.

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On my siesta, the market was also sleepy... so for this very unresponsive flips would be recomendable to exit entire position on scalper exit.... thats why I like to trade on the morning and hasta la vista ¡¡ ... any way this flips made some nice ticks... cheers Walter.

5aa70ddb855c0_flip3.thumb.png.8d70c9d919ec970c0f957403c2ddab69.png

5aa70ddb8c066_flip4.thumb.png.f18ff8caef3d16d580bd5388e3cbd026.png

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June 4 and today flips where there but with very little momentum as the market was on a complete cycle climate.... first one got me stoped...I did not use runners today... exited all together on scalper exit... cheers Walter.

5aa70ddbc5745_flip1.thumb.png.e39f65f65316b56d906091cf0a302e15.png

5aa70ddbcd5d7_flip2.thumb.png.cd4a952ad7ae1bb2f05c2c9c14351c71.png

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Today its been 1 month since I started this flip thread... I have the sensation that the aproach has become stabilized on what it is and pretended to be...

 

There may be some nuances more or less but basicly the entire idea I believe is there...

 

I would like for the sake of this month aniversary to hear some of your feedbacks... what you think, had you been able to try it on some other instrument and time frame... etc... I would appreciate that... maybe I will post it for some more days... but I am about to move to a derivation of "flip" I have been studyng an still didnt post anything about it, ( I will soon start new thread), so maybe this thread would not be updated so periodically...

 

On todays flip we had a nice example of support becoming resistance... with the timing of cci for entries as for exits...

 

hope it has been a nice journey thru "flip" cheers Walter.

5aa70ddbd5c96_flip1.thumb.png.ce35626d0346dba3a3045038f7199101.png

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Walter,just wanted to think you again for this thread ! As i said before right now im only trading forex and i see this setup(flip) time and time again. Looking forward to your new thread!!

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Walter

 

Absolutely great thread, followed you all the way through it, I'm now just starting to trade it and really like the risk/reward side of it as the signals are momentum based and it gets you out quick without too much pain if incorrect.

 

I keep checking your thread every night to see if I spot the same opportunities as yourself, however, I keep missing some of the opportunites you spot because I currently only seem to see the picture perfect ones.

 

For instance I missed those today that you have posted, because when the resistance line gets penetrated I dismiss them as being invalid, however, as you show they were profitable trades. I think as time goes on, my eye will get trained better into seeing the setups in real time.

 

One thing I am noticing live when waiting for flips to occur is just straight forward bounces off the support line with the timing of cci to go with it, for example, your chart posted today, the bounce off support at 8:40 coupled with the cci crossover gives out a great trade. I'm still working on this one so it's still early doors yet.

 

Once again Walter many thanks for your hard work and contribution to this forum and I really enjoy reading your posts.

 

 

Blu-Ray

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What kind of risk vs reward ratio do you guys use on this setup ?

 

Not really using a ratio as such, just following momentum, so will exit if it re-crosses cci zero line or sometimes exit at cci 50+/-. This is something I'm trying to fine tune at present.

 

Blu-Ray

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So far today has been a happy flip day... always when we have momentum being built, specially on the first hour... flips get a nice performance...

 

You may notice that entries are at 100 levels, call that agressive, the normal entry would be at 0... cheers Walter.

5aa70ddbeb75a_flip1.thumb.png.06d251e9952def1e7c9c288424692b0c.png

5aa70ddc03796_flip2.thumb.png.c9743bcb252cedeb156015bebc461f1c.png

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Walterw, thank you for an excellent thread of simplifying an idea of support/resistance momentum switch. It can be easily transferred to the check list for entry and possible mechanical strategy.

 

I am following this thread for a while, though I trade exclusively mini Dow, I have made some adjustments for the KC settings, so here is 55 YM chart and the setup is –

 

Keltner Channels 100, 1 and 100, 2.5

CCI 14 with alert levels -200, -100, 0, +100, +200

EMA 34 (hlc/3)

 

So far I have several rules for the long signal /reverse for short/ and still fine tuning

 

1. Market must go outside the KC (100;2.5); longer it stay there, stronger the move

2. Market should return inside the bands and than make a new high.

3. Market should retrace to the KC (100;1)

4. Entry on the CCI(14) cross -100 from the below

 

From my little observation, conservative flip entry on the CCI crossing zero line, in this scenario, almost identical to the bar close on the right side of EMA.

5aa70ddc0ce40_ymflip1.jpg.2e986e68f48eaa34d63b9b9027ab1f48.jpg

5aa70ddc13766_ymflip2.thumb.jpg.72e54af34ac012ec478d18db7d643c6b.jpg

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Excellent job Ztrade ¡¡¡ you see how you got in before the momentum explosion.... certainly good stuff ¡¡ keep posting, it is a good excercise, it willl help you a lot.... thanks for sharing... cheers Walter.

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Hey walter, i have been playing around with different ways of using money management with this setup. I was auctually in a free trade on that one,but didnt give the runner time to do its job. But i was happy with the pips made. Still getting use to it and just trying to figure out what works best for me.:)

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walter, no generally i do not scale out,im usually in till either take profit or stops are hit once im in a trade. But for some reason i didnt feel comfortable doing that with this set up. Although i usually trade much larger timeframes, I really enjoy trading this setup on the 1 min charts. What i was testing, for instance say i had a 5 pip stop in place depending on the commission (its different for different pairs) i would wait until i would be able to cover the stops and the commmission say +6 pips from there i would close half my position leave my stops inplace (and not auctually move my stops up to breakeven) seems like it gives it a little more room to move. and then just monitor the other half until i thought it was time to close or just happy with the results. Any opinions?

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Yes Don, it makes sense... similar to what I am doing now... I get out on two diferent exits, the scalper exit and the runner exit ... without changing any stop...

 

I do get out 2/3 position on scalper exit and 1/3 on runner exit... now I like the idea you suggest of taking half and half... It could have much better $ results taking the runners with more money comitment...

 

In terms of technicall exits : scalper exit = first cci hook from 100 levels

 

Runner exit = cross of oposite 50 level... (this ones are the ones that make money on momentum )...

 

I like your 1 min time frame... I see a very clean chart and the momentum pips are very nice... good job Don ¡¡ cheers Walter.

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Since my last post i took two more trades, The first one i had a very aggressive entry almost right at the support line ,closed half my position at +5pips and left the runner till cci crossed the 0 line for +5 pips.

Second one was a pictue perfect setup closed half my position at +5 pips but cut the runner short for +10 pips.

 

attachment.php?attachmentid=1674&stc=1&d=1181266702

 

attachment.php?attachmentid=1675&stc=1&d=1181266702

jpn.thumb.gif.2d6251d73c559793d678feece2b0a624.gif

5aa70ddc6e851_eurjpn.thumb.gif.61f8bb562578c2c7ac7b8e79f3f91b2b.gif

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My Lord Don ¡¡ beautifull trades there... I am seriously looking at forex charts from here on... I am coming to a serious hipotesis that forex has even better performance for "flips" as it has such a respect for S&R levels...

 

Defenitily 1 min is a nice time frame...

 

I atach an eur/usd of what happened earlier to todays eur post from yours..

 

in this chart I dont have cci nor keltner its a free web chart... used a stoch , just performed swift... great post Don... keep them coming, I also decided to keep this flip thread alive...

 

probably will also start trading forex again... its been 6 years since I dont make a forex trade.... thanks Don ¡¡ cheers Walter.

5aa70ddc77df5_awesomeforexflips.thumb.png.71d7c87a9517204daede364c9de82f82.png

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Hey walter thats great to hear, looks like you may be demoing efx now but not sure, if u are their free charting lags quite a bit compared to auctual price. They are suppose to release their new charting package sometime this year. Commission is my only gripe with them they are high you pay when u enter a trade and when u exit, but i believe if u trade over a certain amount they will cut u a break on commision. I had a lot of problems with there demo,but have not had any with their live platform. Just wanted to let u know,hope u make many pips!!!

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