Mickey's Journal

[kiravon]

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[Hill]

yes. as Immy teaches we do not and should not trade EW. I don't use the EW indicator and I can not comment on 5 before 3. But I dont trade EW. just fruits and classic entries.

So Wave 5 BEFORE and AFTER Wave 3 = False EW Reading
and this happens a lot so I guess a lot of
discernment is needed and why you would
never use EW as the basis for an entry, maybe
more for cooberation of an entry

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[Hill]

amazing wisdom. thanks Immy.

I have read this few times and it is well written. Thanks again chief.

You're asking Kyle to interpret something that he has understood! Now lets see if the choice of his words and the sentences that form a paragraph will convey his "light" to our prisms and lenses as accurately as possible and then there is this complex part of that light going through to the other side without much "deflection" and "distortion" so that we could understand his light as accurately as possible!

Its therefore important for us to create our own personal trading plans, trading methodology and tactics. They don't necessarily have to be 100% novel and unique. Which is why we shared our strategies and tactics so that others can start by following the method as it is in its original form and gradually "make it their own". A word caution must be noted here that this process or tweaking or making the method your own, must be carefully calibrated and watched. The changes must be subtle or noticeable but not to the extent that changes the whole theme all together! The symmetry of the trend must remain in tact. The following paras might shed some more light on the Symmetry of things!

Now on to the question. The following words, not yet written down, would be MY understanding of the concept rather than my interpretation of kyle's understanding of the concept. I hope this and the following both make sense.

4th waves or corrective waves have a tendency to create many patterns unlike impulsive waves where you see the 5 waves sequence most of the time. there is more irregularity within those waves which is a perfect example of Chaos! (higher form of order).

There are however, two patterns that are most visible and easily identifiable patterns out of the myriads of patterns it creates. One is the 3 waves pull back otherwise known as the zig zag pullback in the general trading world aka PC pattern in AIMS world.

The other is the tight range pattern. If you happen to understand the Famous pattern, its based on 4th wave following a strong wave 3 where the 4th wave is pancake flat. The box range is very tight relative to the normal range of the chart and time frame in question. The zig zag pattern is closely linked to the PC pattern. It can still be identified even on a naked chart. The ZigZag pattern often can retrace almost 62% of the wave 3 however our favourite arease are 38% to 50%. Because based on the authentic research of the profitunity group, 4th waves usually terminate, 8 out of 10 times, between 38% and 50% retracement of the wave 3. The Flat wave 4 gives us The tight Setup 1 or Classic breakout entry setup and the zig zag offers PC and Apple Entry Setup. The flat tight wave 4 may not always retrace between 38-50%. Kyle has cleverly incorporated this into his Flow chart by allowing him to take an Apple between 23% to 62%. The reason, in my opinion, he's allowed himself to take apple even if it retraced more than 50%, would be because of wave 2 pullbacks. Wave 2's often pullback upto 62% and by the rules of pure ellioticians a wave 2 can pullback even all the way to 100% and still not break the symmetry of the upcoming trend. [hence price between box high and box low within tight wave 4 could often be a tight, small and hidden wave 2. Here I must mention The Monarch pattern because this pattern often depicts these hidden 1-2's within a tight range market allowing us to get into the market before others can see it! In case you question, why do I mention wave 2's when we are actually discussing wave 4? Well, that's because by the rules of "Fractal Geometry" all wave 4's on a certain time frame may well appear as wave 2's on a certain higher time frame.

So here I must talk about our Turkish friend Adem who used to say, "I'm looking for the big 1-2s". He traded the hourly time frame and looked for big 1-2. The big 1-2's would be a nice wave 3 down followed by a wave 4 on m30 or m15. The biggest advantage of Higher time frame is that you can drop to lower time frame to further confirm your count using the expanded bars on eWave. e..g if you see a certain wave on h1 and assume it appears as wave 1 and 2. You have the powerful option to expand the charts to fit within the criteria of eWave counting by dropping a time frame a step or two down. If a the pattern in question is comprised of less than the minimum bars of 100 (on ewave) you need to split those bars and bring them between the 100-140 level so that you can get the accurate count. If a wave on current time frame is less than 100 bars it might be too less bars to get the accurate count if its more than 140 then it might be too much information and complicate things. So we want to zoom in out appropriately within the 100-140 bars.

A trend starts off smaller waves and gradually "spirals" into larger waves. (the word spiral is not a choice word, I had to use that word because that is what it does, in chaos terms.) This proportional increase of wave length has a structure and symmetry. The moment this symmetry is broken we are not comfortable trading the situation. This is what Michael Zlabinger calls the presence or absence of structure. The divergence on eWave lets us see this expansion or contractions of the wave via its momentum indications. Do I have to remind here that eWave looks at the average of the last 5 bars and compares that to the average of the last 34 bars? It shows whether the average of the current 5 bars is proportionally increasing compared to the 34 bars or decreasing. do I have to mention this?

All IMHO

[immy]

Proximity is Power!

I've been reading up on Famous Sam which is an enthralling read,
also re reading Michael's chart synopses and looking at his charts
and at times really scratching my head!

For a long time I've looked at Michael's chart entries and in many
cases I've thought he must be completely mad even thinking
about some of these setups that from my perception just look
like trading for trading's sake

but such trading results only in blown accounts not 60% per
month growth!

so what I was seeing was not a case of poor trading obviously
but a case of very poor interpretation of excellent trading

So Michael's awesome and consistently outstanding results
have made me really have to look more carefully at what
he is really doing

Some of his technical references and abbreviations have
eluded me for the moment but generally I think I can see
what he is doing. I have always viewed Michael as the
ultimate technician more than magician, actually its
mainly his results that are magic, he does indeed just
seem to pull them out of the hat.

but I am reminded of what Immy said of Kyle's flow
chart rule, to the effect that how the chart hits
his eye and its component parts are processed
by the brain is unique to him. That actually
was quite a profound paragraph that may be
worth resurrecting in bold to reflect back on

but that principle is never more true than in Michael's
case,- he is looking at the same chart as me
but seeing something very different

so I tried an interesting experiment last night-
I just remembered all my old Tony Robbin's training
about modelling success and just really tried to
put myself into a Michael mode as I looked
over his charts with different eyes, really
determined to see what he was seeing.

After a while it became very illuminating as I
would see his 'Monarch Seed' or Cherry and
why he saw it's potential whereas ordinarily viewing the
same chart with Mickey's eyes I would absolutely
not have been impressed

So I thought, perhaps I should be taking detailed notes
here, but then I remembered the voice of yet another
mentor Jay Abrahams. Whether it was how to get endless
referrals for your business or how to succeed in joint
venturing I can't remember and it doesn't matter

What he said was this ( he's a billionaire by the way so
worth listening to ) - 'Don't take notes, just keep listening
to the CDs over and over and just let my teachings be absorbed
naturally', - in other words the unconscious mind knows what it
needs to take from the material

I did that and virtually none of his lessons were of any practical
use to me in a UK setting, - he was very American in his
marketing style.

but one thing, and maybe only one expression stuck in my mind
'the strategy of pre eminence' I absolutely got that! and when
I started speaking to my clients in a way that subtly conveyed
that under my modest manner I was probably one of the most
experienced legal practitioners in my field my profits really soared.

But that life changing lesson was unconsciously absorbed from his
teachings, not consciously or studiously learned

I think reading and re reading Mark Douglas works in much the
same way - some of his truths are needed and absorbed by
the unconscious more than others, or perhaps some lessons
are more needed at different times. How true the adage -

'When the student is ready the teacher appears'

There is absolutely no question in my mind that 99% of
the value of AIMS membership is absolutely not the
indicators although they are extremely helpful, but
the value is in this journal section.

Just poring over the charts and thinking processes
of our guys who generously document everything
is an absolute gold mine!

We have several such guys and many more in the
chrysalis.

'Proximity is power'

If you keep watching, reading every little thought
and trading insight of someone who is making 60%
a month guess what will eventually happen?

Something has to happen - there will be those
lightbulb moments that will take your trading to the
next level

So thanks to Sam and Michael, I was up very late
last night reading and reading

and after a string of stressed out, undisciplined rents
I seem to have a nice trade now on EU, and I've just
moved SL to BE on GU trade so I feel the week is
off to a good start

I only meant to post GU chart, the essay just came
out of nowhere, - actually that's not strictly true, it
had all been percolating during my sleep after reading
over Michael and Sam's journals

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READ THIS GUYS.... READ THIS
and btw Mickey! I'm thoroughly enjoying your trading. Keep at it mate. We have now properly started trading Hourly charts in the skype room. This is proving rather good. I can keep the guys off the m1 chart after 2hrs are up and we spend the day analysing those lovely patterns like you do. Much more fun IMHO! keep going

[immy]

Since you have time and you don't have the eWave paradigm exploded in your neural network. I might make an attempt to fertilise the field a bit.

First picture one. How beautiful is this!

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You want to see how to get accurate count? We need 100 - 140 bars on eWave to get accurate count. Go to H4, expand the chart... hmmm

16-10-2015 23-16-51.png

Nah, its not enough, lets go a step down. to get that 100 bar minimum at least

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[kiravon]

Thanks Immy and Hill both

for the whole yin and yang thing.

Two of Immy's trades above minus all the fruits, adams, cherries,
seeds and monarchs are just simple but outstanding Classic S1s

AO at ZL, Gator intertwined, break of small AIMS box in direction
of 5x HTF

so you dont need ewave

however, ordinarily you would probably have aborted the trade
when it started reversing

but 'seeing' EW in real time might give you more confidence
to stay in to make a spectacular profit.

[kiravon]

I like the look of this because there is clear 50 pips
to next support. a nice looking chart without a setup

so often I take nice looking setups without a nice looking
chart. usually I call these trades ''rents'. a setup tells me
what the price is likely about to do, whereas the chart
tells us what it is quite likely to do after that

ie run on a while or abruptly reverse at nearby
support/resistance

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[kiravon]

and this chart makes sense to me. as yet no setup
but if a setup appears I will be confident to take it.

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[kiravon]

Divergence on Dax on H1, and hit resistance on H4
waiting for an IB on H1 to indicate a possible reversal
to the downside

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[kiravon]

But here's the problem with the Dax

The current candle on H1 might prove
to be an IB but placing PO under it gives
a non viable RR.

So we must wait for a better and smaller
subsequent IB or simply walk away

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