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walterw

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

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Hello fellow traders.... today may 22 flips where nice and gentle to trade... the day started on a very cycle fashion... as I am trying only to take flips that come from an outerband pivot to have some momentum It took some time on the day to get that hapened...

 

First chart show a nice clean flip... second shows a stop followed by a second attempt that worked ok... so far so good... timing could be done with cci or with averages crossovers.... cheers Walter.

5aa70dd9cb7f8_flip_1.thumb.png.00558e815a0ccaa52281e722b5bf4d21.png

5aa70dd9d42cf_flip_2.thumb.png.3d85b50a1b6c1909575607ca1efacfbf.png

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Today may 23... there are lots of flips, but I am only taking the "Momentum Flips" wich have their first pivot on the outerband area.... so far today we had a nice flip to the upside... cheers Walter.

5aa70dd9f179a_flip1.thumb.png.15435bc5b487502d163945b56922d4fb.png

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Today may 24 a momentum day thanks to news... 2 "momentum flips" also... the first one gave entry right on the news release, reason I didnt take it lol :mad:... the second one was very nice one but exit was triggered to soon for runner .... not exactly a happy day for me... any way flips did work.... cheers Walter.

5aa70dda256d5_flip1.thumb.png.76b801224b784a18c62a3a5057268155.png

5aa70dda2d5e0_flip2.thumb.png.5e7f9b7003d98bc8ddc6bac8a554abcb.png

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Hello Fellow traders ¡¡ today is may 25 holiday in Argentina ... today we had a small but decent flip that gave me 80 dollars per contract, today I timed my trade with the averages Least square mov av 6 (yellow) and simple mov av 7 (light grey)... as the market was making new days high with very little enthusiasm (velocity) I did not keep any runner and closed entire position at the averages crossover... for today I am done, will make a good asado and take a nice siesta then go to the movies... hope you guys enjoy the weekend and clear your minds... think positive¡¡¡ see you all tuesday... cheers Walter.

5aa70dda519bf_flip1.thumb.png.74ccdf0d00b30eaafb87c9621d0343f4.png

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I have uploaded a chart of a trade I made this morning on GLW (NYSE) using what you have called "Flip Trade". Rather than use a tick chart to find changing support/resistance, I view a 30min & 15min. I look at price history for several days/weeks or months to find old broken resistance to act as new support. Before the trade can be entered at this "support/resistance" zone, you must have Fibonacci projections or retracements lining up with it (fib cluster). Pay very close attention to the closing price on the 30 min candlesticks on May 25th. They are within $0.01 of the resistance candlestick closing prices which occured 7 trading days earlier.

Finally, using a longer time frame will give you better candlestick signals (doji cross etc), you will make fewer trades, and the trades you make will give you a higher profit. There was too much data to attach the chart so I uploaded it to MEGAUPLOAD - The leading online storage and file delivery service

 

Let me know if it works to view. If no then I can email it to you.

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Hey walterw, well i just wanted to say thanks for keeping this thread going , i sat down last night and started reading and i tell you what u have a nice simple system going here, although its been awhile since ive had any indiacators on my charts,i did put them up and followed along most of the trading day. I wanted to take your principals and apply them to forex. To see what would happen and i would say it would have been a good day!! But again thanks for your time and wisdom!! Here are 2 flip trades back to back for the same pair.

attachment.php?attachmentid=1604&stc=1&d=1180144702

 

 

attachment.php?attachmentid=1605&stc=1&d=1180144702

eurjpy.thumb.gif.c978789d98e90b871121a3385c68f690.gif

5aa70dda60cc4_eurjpy2.thumb.gif.6ff696f66646dbb5cb26b07b8fa9420a.gif

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Wow Don ¡¡¡ Great Flips there ¡¡¡ and very nice momentum on forex... as you had bars clean outside the black keltner, keeping a runner until the white keltner cross could be considered... I like to see how forex its so respectfull too the S&R levels... sounds like banks trade a lot looking at S&R levels... feel free to keep posting on here your flips ¡¡ I would love to expand my vision to forex... thanks for posting Don ¡¡¡ its very encouraging to see some others views... cheers Walter.

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  neustaju said:
I have uploaded a chart of a trade I made this morning on GLW (NYSE) using what you have called "Flip Trade". Rather than use a tick chart to find changing support/resistance, I view a 30min & 15min. I look at price history for several days/weeks or months to find old broken resistance to act as new support. Before the trade can be entered at this "support/resistance" zone, you must have Fibonacci projections or retracements lining up with it (fib cluster). Pay very close attention to the closing price on the 30 min candlesticks on May 25th. They are within $0.01 of the resistance candlestick closing prices which occured 7 trading days earlier.

Finally, using a longer time frame will give you better candlestick signals (doji cross etc), you will make fewer trades, and the trades you make will give you a higher profit. There was too much data to attach the chart so I uploaded it to MEGAUPLOAD - The leading online storage and file delivery service

 

Let me know if it works to view. If no then I can email it to you.

 

 

neustaju : havent been able to see your chart, should you check this instructions for posting charts http://www.traderslaboratory.com/forums/f30/how-post-chart-properly-805.html#post11516 in terms of time frames as you mention above, there are diferent type of traders, you have scalpers, daytraders, swingtraders and long term traders to mention a few... they are all diferent breeds, think that really responds to the personality of the individual, some are patient to be long term traders other like instant gratification like a scalper... some are confident overnight, others we have the 9/11 scars and like too sleep flat at night, the nice thing is that this aproach can be used by any of them, as it can be valid on any time frame... please try to post your chart here so we can all learn from it... cheers Walter.

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Hey Walter, I understand what you mean about the 911 situation. I'm not in a position to hold trades overnight either. All I mean to share with you is the belief that the patterns you are trading are identical to longer time patterns as well.

 

To view the chart click on the link below. The file name is GLW +0.45. In the top right corner you will have to "Please Enter" several letters, then click "Download". The screen should change then seconds will begin counting down and the box will change to "Download". Click the download box and "open" or "save as"

 

The chart program is Qcharts and it is posted in .BMP format.

Goodluck,

Justin

 

MEGAUPLOAD - The leading online storage and file delivery service

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Dear Mr. Walter,

 

I truly enjoy this thread you have going on the flip trade. In my opinion you are progressing in the right direction. I have been using this method on the U.S. index market for three years on a 2m chart. I trade the ES for a 4pt target and use a worst case scenario 4pt stop. I always use the fixed ratio becasue I don't like guess work. I like it all to be automatic.

 

The price pattern is very reliable if it is filtered down correctly. I don't beleive in indicators at all. It can be correctly filtered by confirming action in the Es, ym, nq, dax, and volumes in all of them. I enter right upon the test of the fliped breakout level, I don't wait for an indicator to turn. If you get a good entry and you are wrong you can usually get out around break even if you move quickly.

 

There is a nuance that will even increase your percentages. In using your terminology it would be a flip of a flip. I use wyckoff terminology and call it jumping the creek and coming back to ice, then at ice jumping the creek and coming back to ice. I found this is one of the most reliable price patterns out there. But, I must warn you price patterns alone is not enough. The market is much more complex it should be looked at on other dimensions such as volume and other factors. The best isolated price patterns fail all the time.

 

Any how, great work with the thread and I wish you a prosperous trading career. In my opinion you are on the right path. Look deeper than just the isolated price pattern and you build a system that will secure you profits week in and week out.

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  neustaju said:
Hey Walter, I understand what you mean about the 911 situation. I'm not in a position to hold trades overnight either. All I mean to share with you is the belief that the patterns you are trading are identical to longer time patterns as well.

 

To view the chart click on the link below. The file name is GLW +0.45. In the top right corner you will have to "Please Enter" several letters, then click "Download". The screen should change then seconds will begin counting down and the box will change to "Download". Click the download box and "open" or "save as"

 

The chart program is Qcharts and it is posted in .BMP format.

Goodluck,

Justin

 

MEGAUPLOAD - The leading online storage and file delivery service

 

Posted as .jpg here - not everyone trusts downloads from that site.

 

P.S. You may want to open your .bmp file in Windows Paint and save it as a .jpg or .jpeg format and upload it directly onto the site in the future like this:

5aa70dda7c4f4_GLW045.thumb.JPG.9453f1497e602f6db0595aaad77cdfb2.JPG

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  idaxtrader said:
Dear Mr. Walter,

 

I truly enjoy this thread you have going on the flip trade. In my opinion you are progressing in the right direction. I have been using this method on the U.S. index market for three years on a 2m chart. I trade the ES for a 4pt target and use a worst case scenario 4pt stop. I always use the fixed ratio becasue I don't like guess work. I like it all to be automatic.

 

The price pattern is very reliable if it is filtered down correctly. I don't beleive in indicators at all. It can be correctly filtered by confirming action in the Es, ym, nq, dax, and volumes in all of them. I enter right upon the test of the fliped breakout level, I don't wait for an indicator to turn. If you get a good entry and you are wrong you can usually get out around break even if you move quickly.

 

This means that you have to manage your trade, right? At what point do you figure that the trade is going against you?

 

4 pt stop is good, but can your platform automatically adjust it for you? Or is this a manual effort.

 

One thing you might look into is taking some profits say, after the 1st or 2nd point, then moving your stop up to breakeven level and lock in some of the profits.

 

-cooter

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  idaxtrader said:
Dear Mr. Walter,

 

I truly enjoy this thread you have going on the flip trade. In my opinion you are progressing in the right direction. I have been using this method on the U.S. index market for three years on a 2m chart. I trade the ES for a 4pt target and use a worst case scenario 4pt stop. I always use the fixed ratio becasue I don't like guess work. I like it all to be automatic.

 

The price pattern is very reliable if it is filtered down correctly. I don't beleive in indicators at all. It can be correctly filtered by confirming action in the Es, ym, nq, dax, and volumes in all of them. I enter right upon the test of the fliped breakout level, I don't wait for an indicator to turn. If you get a good entry and you are wrong you can usually get out around break even if you move quickly.

 

There is a nuance that will even increase your percentages. In using your terminology it would be a flip of a flip. I use wyckoff terminology and call it jumping the creek and coming back to ice, then at ice jumping the creek and coming back to ice. I found this is one of the most reliable price patterns out there. But, I must warn you price patterns alone is not enough. The market is much more complex it should be looked at on other dimensions such as volume and other factors. The best isolated price patterns fail all the time.

 

Any how, great work with the thread and I wish you a prosperous trading career. In my opinion you are on the right path. Look deeper than just the isolated price pattern and you build a system that will secure you profits week in and week out.

 

Thanks Idax for your kind words... feel free to share some of your 2 min charts here...

In terms of context I dont know if you noticed how "flip" has evolved to "momentum flip" wich puts all trades on a potential momentum context...

 

that has simplified the way to find the flips that offer more potencial, and that normally is travelling outside the keltner outerbands... cheers Walter.

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  cooter said:
Posted as .jpg here - not everyone trusts downloads from that site.

 

P.S. You may want to open your .bmp file in Windows Paint and save it as a .jpg or .jpeg format and upload it directly onto the site in the future like this:

 

Thanks Cooter for posting Justin`s chart, here in Argentina megaupload doesnt work... so Justin for next charts should you consider changing extension like cooters instruction above....

 

About your chart Justin, on the first case it really looks like a coil break type flip... when you have a level "super validated" wich means lots of testing of the same level... (resistance or support) then when we break the flip will be more robust as it happened.... nice chart Justin, thanks for interacting...cheers Walter.

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Hello my dear fellow traders ¡¡ it has been a wonderfull weekend to forget about the markets, clean up the mind and start a nice new fresh week ¡¡¡

 

So far today was a quiet day... but a nice little "clear" flip made me 70 dollars per contract minus funny comissions from my beloved broker...

 

At this point I am ONLY looking for "momentum flips"... wich means the first pivot that forms the flip its at the outerband level...

 

You have a nice "flip" to share ?, feel free to post here... cheers Walter.

flip.thumb.png.e22a3a4fa265a025a354c6fdaa39eacc.png

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Hey Walter you might want to check out the indicator I posted called 3bar, it's in the indicator forum. It identifies what you are looking for visually.

I have tested it doing what you are doing, and it tests well..

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  waveslider said:
Hey Walter you might want to check out the indicator I posted called 3bar, it's in the indicator forum. It identifies what you are looking for visually.

I have tested it doing what you are doing, and it tests well..

 

 

Yes Wave I did have one similar coded by myself some years ago, basicly you are plotting the level of the most significant pivot... by the swing criteria, something similar was done by Wayne Harris from kwikpop.... and then extended into channels...

 

At this point I like to identify pivots manually in relationship to the keltner outerbands.... because I am combining flip with a momentum aproach based on keltner....

 

I will like to see some of your charts using this indicator for flips... cheers Walter.

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Today may 30 was an interesting day on "flip".... and some new nuances are coming in wich I think are worth consideration...

 

As always the first pivot that forms the flip its in the outerband level (for potencial momentum moves)....

 

 

On the first chart there was a little mini flip... I dont trade does.. prefer to see cci on 0 for a zlr type timing or better below 0 for 0 line cross timing...

 

On the second flip timing from -100 would had been very nice... thought its agresive but has better RRR....

 

 

Now, a word about runner clossing... I came to the conclusion that the best runner exit is with the +-50 levels confirmed cross ... cross down -50 for closing longs, cross up +50 for closing shorts...

 

On the second chart today again taking the trade from -100 would make it more agressive but with better RRR and notice the runner :), it worked for 240 dollars per contract... I must confess I got out on the previous 0 line cross with 100 dollars less... but a good observation of this type of situation helps to curb the analisis toward the +-50 lines for next time... cheers Walter.

5aa70ddacb677_flip1.thumb.png.e7a0b36edab062f4d36ff2eb1c4e9f1b.png

5aa70ddad2e7b_flip2.thumb.png.e513e691b33eecc472600c26aaa1da76.png

5aa70ddad6d75_RunnerExit.thumb.png.ba36061f76dba04e9ebdbba6873140f5.png

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Hey Walter, something that i keep noticing while looking at your system in that once price breaks the outer band then crosses back through the zero band does it form strong support and resistance, was wondering if you noticed the same thing.

 

 

 

attachment.php?attachmentid=1630&stc=1&d=1180550535

pound.thumb.gif.e5498a3b6ce30e140c88ea88d0b5437f.gif

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  Don4 said:
Hey Walter, something that i keep noticing while looking at your system in that once price breaks the outer band then crosses back through the zero band does it form strong support and resistance, was wondering if you noticed the same thing.

 

 

 

attachment.php?attachmentid=1630&stc=1&d=1180550535

 

 

Absolutely Don ¡¡ thats why I am only taking into acct the 1rst pivots that are formed on the outerband level, because in order to have a flip we need to break that level and if the level was formed on the outerband then we will have to break somehow the outerbands, wich means a posible momentum scenario...

 

It also makes much more easier the overall analisis aproach.... there is no Mambo triyng to find wich pivot you will select to find flips as it happened on the first flips from this thread....

 

CCI as you mention is doing a superb job to "organize" timing... I agree that the pullback to the flip S&R level should ideally bring cci to the other side of cero, making timing much easier and reliable...

 

I see Don looking at your chart that you got the entire "momentum flip" concept... nice chart indeed ¡¡ cheers Walter.

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Today is may 31 and "flips" today showed a posible momentum alternative... thought its not really the ideal flip... when we have a strong break of our level in consideration, some times the pullback will not come back to test the level making it a "far flip" due to momentum conditions... so to consider taking a "far flip" you need a very strong break where it gets dificult to come all the way back to the level and make a clean tested flip....

 

I atach two examples today (far flips).... the third one was a regular flip but timing wasnt happy on a zlr type.... thought the second entry made a better job... cheers Walter.

5aa70ddb538bb_farflip1.thumb.png.78132f71f3546e78954efddcd577eebe.png

5aa70ddb59ee3_farflip2.thumb.png.5c750d1cc995e8bbf392406baa4bc440.png

5aa70ddb617c5_flip1.thumb.png.31f88f094a33a1cb89dc81d816a80342.png

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June 1st... and today I had two flips so far, one worked like a charm the second one gave me a neutral output...

 

The first one shows how you can take the most of a momentum situation... cheers Walter.

5aa70ddb753a1_flip1.thumb.png.6468fbfee2674c54f2340830ae85db55.png

5aa70ddb7d3b5_flip2.thumb.png.ec548f350de5b16234f0a51870605ee7.png

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