break out after matured wave 1-5 cycle

[zlabis]

Hello my fellow AIMSters,
I'm rather new to and not so much experienced with AIMS and trading but I would like to share a breakout pattern that most of you probably already know. I came aross it while extensive offline testing with Simple Forex Tester (testing EA inside MT4) and Forex Tester 2 (stand alone application).

My inexperienced opinion and observation is that, at the end of a matured trend after w1-w5 cycle is finished, very often the break out pattern displayed on the screenshot can be found:

Price and AO peaks (here on w5 on M5) when trend ends (most often with fruit and fractal), then price falsely breaks the trendline, then forms a lower high before it finally breaks the trendline. Often the trendline is retested before price goes into correction wave of any kind (for down trend it's vice versa).

I don't intent to trade this pattern but I think, it can be used as further confirmation of a fruit or S1/S2 signal like displayed on the chart, where the last down fruit before down move is part of this pattern, IMHO ;-)

Cheers

Michael

[immy]

Hello my fellow AIMSters,
I'm rather new to and not so much experienced with AIMS and trading but I would like to share a breakout pattern that most of you probably already know. I came aross it while extensive offline testing with Simple Forex Tester (testing EA inside MT4) and Forex Tester 2 (stand alone application).

My inexperienced opinion and observation is that, at the end of a matured trend after w1-w5 cycle is finished, very often the break out pattern displayed on the screenshot can be found:

Price and AO peaks (here on w5 on M5) when trend ends (most often with fruit and fractal), then price falsely breaks the trendline, then forms a lower high before it finally breaks the trendline. Often the trendline is retested before price goes into correction wave of any kind (for down trend it's vice versa).

I don't intent to trade this pattern but I think, it can be used as further confirmation of a fruit or S1/S2 signal like displayed on the chart, where the last down fruit before down move is part of this pattern, IMHO ;-)

Cheers

Michael

Michael,

thanks for sharing your discovery but believe me when I say that this idea of "further confirmation" is a mind trick. There is no further confirmation. There is nothing out there that can give you confirmation of the future. There is a either a pattern that you trade or not. If you think this pattern works and you have evidence that it does then why not try it if you don't have evidence you might want to live trade it and you'll find the answer but why invent the wheel a ten thousand times once more? have fun!

ps: having said that I'd like to add, what you've found is EXACTLY the pattern we use for FRUIT entries... so congratulations... no need for false or real break of TL just trade it as simple as possible.