consolidation

[andraz]

Hello,

I am new in using AIMS system and I have a question about trading during consolidation as most of the today's London and US session market was choppy on M5 chart.

Are all the marked signals valid (I put numbers on them)?

The following criteria were met:
- sleeping Alligator
- AO Zline close to zero
- trading away from Purple line

Any additional advice how to trade sideways market?

[Dave]

Hi Andraz, welcome to AIMS.

Everyone will have their own opinion about this but my approach is to wait until the price breaks the range. If you take 1 or 2 losing trades where price is stuck in a sideways market it's usually best to then sit back and avoid trading until price breaks out of that range. It's good to think "is price moving into clear space" and if previous price action shows you're still in a channel then it's often best to stay out. So while your dot # 1 looks a fair entry (I can't see price action before your photo though), entries 2, 3 and 4 are still failing to break the previously created low by the small move at 1.

Sideways markets are the enemy of any trading system, AIMS included. But a good filter is to refer to the higher time frames and always trade in the direction of the open alligator. If the alligator is asleep on the higher time frames, then it's no trade! But if it's awake, and newly awake, then go with it!

Hope this helps!

Dave

[Kyle]

Hi Andraz,
I agree with Dave. Have a look at the higher TF and check to see that you will be trading with the trend, not against it. If it is stuck in a sideways trend, then it is best to wait for the breakout once a trend on the higher TF is confirmed. Yesterday was a prro day for good high quality, high probability trades.

Kyle

[immy]

Hi Andraz

I'm delighted you raised your voice and asked the question , congratulations on taking the positive step. I agree with the other fellas, and would like to add, yesterday as not a day to trade. it was a Bank Holiday. So yesterday US session was not to be included in trading time. The market was there because forex broker keep quoting prices even if there is no one to trade unline stocks and commodities the exchanges close and there is no one to quote a price. Forex is different. So we must keep our mind ready from time zone to time zone. E.g. There is a session for london that overlaps with Tokyo in the beginning and then a few hours with NY. London then closes and NY carries on. But when London is closed in most cases NY session after london close does not do anything. So we have learned is that we trade London Session, because its not just londing their a whole group of European banks with it. and then we trade NY session because thats where NY, London, and whole of europe is active. After that I hit the gym around 4pm UK. Trading does not have to be like WORKING!

So yesterday's range was due to inactivity but trust me you'll see some days like this even when markets are open and all countries are trading. There you will mark the range and try to avoid trading during range bound market times. another point is that we dont mind giving rents, what we mind is giving bigger rents. So if you are caught in a trading range, and you gave 2-3 rents. Just leave the screen come back tomorrow. This is the best way to avoid choppy non tradeable markets. More important thing is when you do give rents, you give small rents. thats the best insurance in trading business ever.

cheers

[immy]

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