WE often indulge into some very useful discussions in the chatroom. And I think most of it goes into the history but we cannot retreive it. So I thought I'll take snap shots of such discussions and post em here so we can revisit them and it would benefit the new comers/others. Let me know if you think its a good idea.
Here is something from today.
Part 1
part 2
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Immy: one of the easiest way to trade m5 is to keep 4-6 pairs on h1. Look out for Tight small seeds. whenver you see a seed drop to m5 and find a proper S1 setup. by trading s1 setups you will eliminate false breakouts of seeds on the wrong side of trend. and at times even tighter SL. then trade and manage on m5 only. this is the scalping, quick profit method. but if you want to go for bigger Profits then trade seeds and manage on h1. or any other time frame of choice. lowest I'll go is m15. 15:11
Immy: and in doing so, you are not required to watch the screen every 5 min rather only once an hr for 1 min. dropping your total trading time to 10 min per day. 15:12
Immy: add to that, h1/m15 pattern, trade the fifth wave of wave 3 on h1. as explained numerous times in my journal and even others' haha 15:12
Immy: SAM is the master of it lol 15:13
Immy: if you see h1 is in fourth wave and want to trade it, you can drop to m5 using Seed technique and take quick profits. 15:13
Immy: so now look at UJ h1, would you go short? or should I ask, is this the h1/m15 pattern, the famous pattern? 15:15
Immy: out of the abc waves within wave 4, only C is worth trading. 15:16
Immy: thats how far down the rabbit hole I go (elliott wave) simple wave 3, wave 4 wave 5. within wave 4 i look for abc. thats all. i don't try to connect all thedots like elliotticians. 15:17
Mike M: On the UJ hourly, it seems to have made a higher low, is this part of the pattern 15:20
moty: did u enter the h1/m15 pattren on the m15 levels? or the H1 levels? 15:20
Immy: first , the answer to the question, is this the h1/m15 pattern we are talking about? 15:21
Immy: ofcourse its not, because here we have already seen a strong wave 3 down, which appears to have been completed and we are going into wave 4. but we cannot say its wave 4 on h1 chart, as its not yet crossed the ZL. 15:22
moty: i think the H1 gator is not open now, so maybe no 15:22
Immy: however, we do see a PC, to which Mike referred, "a higher low with a higher high" 15:22
Immy: we are most probably in wave 4. here if we drop to m15 we'd be trading wave 4 and trading to catch a wave 5 for h1 wave sequence. 15:23
Immy: for a strong drop like that, and a strong wave 3 , i'd give it more time to go sideways and see where it goes from there. as we look at D1 we appear to be under the umbrella of 4th wave. so now that price has bounced off the lower aims level on D1, we could even expect price to make a 3 up instead of 5 down on h1. so you see its getting complicated and for that we say, move on to the next pair. but there is still potentila in this as there has been "previously" volatility on this pair. 15:25
Zain: So in M15 UJ it can be a wave b of the correction of H1 ABC 15:31
Mike M: Thanks Immy, that really helped me understand that pattern better. 15:40
Immy: brb 15:41
Immy: back 15:47
Immy: Yes Zain it could be that. 15:47
Immy: or it could be start of wave 5. but who knows. for that we have to make ourselves "available" to find out. 15:47
Immy: it is a good m15 setup on its own, whether you filter it or trade is a decision that will depend on what type of trader you are and what have you down in your "written" trading plan. smile 15:48
Darren: I think that is me done for the day. Nothing this afternoon. FOMC a bit later. smile 15:49
Immy: e..g there would be one person who says, I trade The Famous pattern only. I wait for H1 to show a trend and then I drop to m15 and find a wave 5 of that wave 3 up. (you may not always be able to do that, as its not going to setup for wave 5 each time" 15:49
Immy: there would be others who'd say, I try for a breakout of H1, S1 or S2 entry and then I wait for its wave 5 . so trading only h1, in the direction of the trend. on lets ay Daily or h4. 15:50
Immy: Then we could have one that says, I do none or all of the above and trade Seeds on first pullback after a clear breakout. e.g. AU YD. 15:51
Immy: I do in fact know a few guys, who trade m15, and they trade ONLY the famous pattern. I can literally say that when they have there screen showing one pair full screen they see 2 days of dayat, one whole YD part of todays as it happens and a bit from the day before. and on their screen they have written if you don't see a Wave 3 YD, you do not trade. 15:52
Immy: then they have 3 entry mechanisms. 1. S1 in the direction of previous Wave 3 (making sure wave 4 happens and forms a nice sideways tight boxes pattern) or S2 or s1/s2 both add to it, you can have one plan that says trade Seeds immediately after S1 breakout. these are all my favourite scenarios.
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