How to Use The Flow Chart to Create The Setup Signal

[immy]

Please Download - Print (Laminate if possible) and Display next to your Trading PC.
We Assume that the readers has read AIMS - The Setup eBook.

[Huge Thanks to Grant for Making This Flowchart]

We Need to objective yet keep the process simple and understandable. The Flow chart breaks down the Setup entry signal into various understandable steps.

Lets make our trading analysis objective and very simple. By following the flow chart, you'll make sure that every trade you take is based on simple but very objective analysis.

In doing so, At the end of the day, any one would be able to tell where you might have gone long or short.
(As long as they understood the strategy and the flow chart)

Always Keep it Handy specially during your T20 Discipline Training Phase. Stage 1-2 Rely on this heavily

THE SETUP Pattern comes before The Flow Chart
Before you take a Setup 1 or Setup 2 Entry Signal, You First Have to Create The Setup Pattern.

The Setup Pattern is Created by analysing the Last 100-140 Bars of AIMS Wave and price candles. Basically what you see on a full screen chart consisting of at least 100 candles/bars.

First You Look for a Major Peak on either side of the AIMS Wave histogram within the last 100 Candles and Bars of AIMS Wave.

This means you've noticed a Peak of AO/ AIMS WAve and You've spotted an open gator and price going in that direction.

If the Colour is Green and that is the largest Peak, then that is probably your trend. A Picture here will help.

Also Watch the videos to understand it further.

Setup 1 - What is it.png

You've seen a Peaking AO and You've Seen an Open Gator. Next You want to see that this peak has started retracing back to ZL.

When the Price crosses inside gator and AO cross ZL you're in wave 4. You are now looking for Setup 1/ 2 or 0 signal. For this you will need to apply the Flow Chart Below

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[Note: please read 10s to Elliott Wave to understand this in depth]

The Three Rules Setup Flow Chart.pdf

The Three Rules Flow Chart.png

Video on The Three Rules or Grant's Flowchart
In this video Immy goes through The Three Rules Flow Chart for Taking and filtering Setup 1 and Setup 2 Using hourly charts on currency pairs
This is part 1 of the video
Note1: Please note I have chosen to hide black dots in the settings in this video so you won't see the black dots. Black dots actually mean price closed inside the gator mouth a. below the green line which Purple is below the green or b. price closed above the green line while green was below the purple line.

Note 2: The v5.1 indicator checks for purple line, encoded, so that question is nearly always answered but its good to learn and make this a practice.



This is Part 2 of the video (apologies for two parts, I pressed pause and continued harping for another 10 minutes without recording. So I had to make another part)


Extra Part 3: What are the Highest Probability Setups? What is THE NEW SETUP 1?





Special Thanks to Grant Hardiman who originally came up with the idea and created the flow chart! Thank You for this Great Flow Chart! IT makes our life a lot easier.

One Extra Question to Ask during and after this Flow Chart Analysis:

What is the eWave analysis on both Current Time Frame and 5 X Higher Time Frame?
This Final question will keep you in tune with the market and help to boost confidence or filter some setups. Use it wisely.

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AIMS Entry Alert V5.1 Update

[immy]

The Flow chart is the break-down of the Three Rules in a logical manner. All three rules broken down into certain steps.

Notice that in the book we have mentioned the Purple Line as a Ground Rule. But in the flow chart that ground rule found its place. And it is good to have it there. (Edited 11-Jan-12: V5 Dots Take Care of checking these steps ) In the above pdf/picture the coloured background shade marks the steps of the flow chart that pertains to each of the The Three Rules.

I love it, I have laminated it and posted it in front of me. I don't have to look at it and remind me of the steps since the process is part of me, it all just happens all by itself. But that comes with experience and experience comes with this:

Consistency = Patience + Discipline

Its akin to learning to drive. Once you've mastered driving you don't have to know which gear you're in. Heck you even cant tell whether you've passed that bridge or not. Because you may have gone in a trance and memory retrieval function stops during most trances. in it just all happens automatic. When you're learning, in the beginning your Left Brain gets engaged. You use the concious part of your brain. The Left analytic, problem solving brain. You are in the concious level. So you are aware of every move. and that is difficult. But this you must do and with enough repetition which means Patience and Discipline, you get it. You start 'Enjoying' the process and stop paying attention to the details. You enjoy the experience of driving and the concious brain engages itself in other stuff. So who drives the car? The right brain. This activity when mastered is passed on to the automatic more powerful brain. That is all done in the Right Brain and so it becomes part of your mental programming and then comes the time when you become an Automatic Robotic Trader.

With this in mind, now suppose that you are able to somehow 'Create' a solution to get rid of Fear and Anxiety. e.g. by applying simple mind techniques you can achieve the amazing state of mind called The Zone. When in the zone, you are in the now. You are having a blast, you are focused and still relaxed and really enjoying yourself in the present moment. Then, "You know without knowing how you know".


Surprisingly there are simple tools and techniques that can help one get in and out of the zone. but who want to get out of the zone aye?

Remember that nothing can be undone in this universe. The only thing you can do to avoid Fear and Anxiety is to divert your focus from "What You Do Not Want" to "What You Want". If you want to get rid of Fear and Anxiety in trading then FOCUS on Joy and Relaxation and apply techniques that bring you to the state of joy and avoid the actions that may induce fear and anxiety. Don't even talk about it .

There is one technique that I have shared in the Mind section which is very simple and easy to apply but it kills 70% of Fear and Anxiety.


Enjoy!

[laurence]

Hi Immy,

This flow chart is great.

Btw, may I ask questions on two of the boxes in the flow chart?

1. What does "Is dot completely inside AIMS?" box tell us?

My interpretation:

Is it asking us whether the CANDLE, with the dot, is inside AIMS Box. Is that correct?
OR
The dot itself, but not the candle, is in the AIM Box?
OR
Both the 'dot' & the ''candle with the dot'' is within the AiMS Box?

2. Next, what does "is there a FRESH Aims level after dot?" box tell us?

My interpretation:

A NEW Aims level has appeared right at the SAME time at the close of the candle, with a dot.
OR
A NEW Aims level has appeared right at the SAME time at the close of the candle, which is on the RIGHT HAND SIDE of the ''candle with a dot''.

Furthermore, why must we be concerned with FRESH level of AIMS to see the setup?


Thanks Immy.

Have a good holiday.

Laurence

[Grant]

Hi Laurence,

to answer your questions :

1. Yes the dot candle is inside aims and

2. Without getting too deep into Elliot wave, the dots "usually" ( not always) appear on the 1 wave of an elliot wave sequence, so if the dot candle is outside aims then it can pull back for a wave 2 before the trend continues in the 3rd wave.... So waiting for the fresh aims creates the low of wave 1 with the pull back being wave 2...

Hope i explained that ok

Grant

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Edit: The latest updated AIMS Entry Alert V5.1 takes care of this. If a red dot has broken aims level low, it will be painted as pink and green for blue dots.

[immy]

Yes Thanks Grant, its a great perspective!

The dot is just a mark to show that this candle has the dot. So yes it means that for Red Dot, the low is above the AIMS Level of the current AIMS box and vice versa for blue dot. and the fresh aims is related to the first question. If the dot is not inside meaning the low/high of the candle with a dot has already broken the aims level we then wait for a fresh aims level, like Grant explained it gets us into next impulse wave.

cheers

[laurence]

It makes clear sense now.

if we miss wave 1, we wait for wave 3 (which is after the pull back called wave 2.)

I'll purchase the premium after my exams in Jan so that I can understand more on the elliot waves to give myself a good foundation.

Thanks Grant(new profile pic!) and Immy!

[immy]

Hi

I have just updated the Flow Chart. Please have a fresh download.

cheers

Immy

[insc59]

Hi Immy/Aimsters,

I have tried several times to print The Three Rules - Flow Chart but each time it prints the background shaded areas are either white or black.
Any advice on printing this exactly as it shown on screen would be appreciated.

Thanks
Ian

[chris2var]

Hi Ian,

What are you trying to print - the image above?

Have you not downloaded the attachment "the three rules flowchart.pdf" opened the pdf and printed that?

I just wondered as I had no problem printing it from the pdf.

Chris

[insc59]

Hi Chris,

Thanks for your reply, I have downloaded the PDF and for whatever reason it wont print the3 colour shaded background it prints in black and white.

All the boxes and words print fine.

Thanks
Ian