Immy's Corner [The Setup The Hunt - T20's and more]

[zainfakhan]

I think this is called classic AIMS entry. ^:)^

[Nikita]

Could that mean, that if w5 doesnt appear within a long time, we can think that market doesnt want to go this way?

[immy]

Could that mean, that if w5 doesnt appear within a long time, we can think that market doesnt want to go this way?

Lets put it this way.

There is always only 50% chance of Wave 3 happening (that is biggest green peak on eWave within the last 140 candles/bars for Uptrend or biggest Red peak on eWave within the last 140 candles/bars for down trend). Once Wave 3 is spotted there is always only 50% chance of Wave 4 happening and wave 4 is based 50% on the confirmation of wave 3, and wave 4 is at least cross of zero line in the opposite direction of wave 3, ie. cross of zero line red against a green wave 3 or vice versa. Then there is always only 50% chance of Wave 5 happening after wave 4 (i.e cross of ZL against wave 3 peaks) and so on and so forth. Wave 3 is only 75% confirmed after wave 4 is confirmed confirmed 50% i.e. cross of ZL, and wave 3 will be 100% confirmed when Wave 5 is confirmed that is Divergence of eWave after wave 4. So if you sit there trying to catch wave 5, at that time, wave 3 and wave 4 are both only partially confirmed and if price does not make a wave 5 that means both "what you thought were wave 4 and wave 3 were not wave 4 and wave 3 and they were something else.

This is why it is essential to learn to be IN THE NOW. Remember we do NOT trade elliott wave (apart from Fran haha) we trade THE SETUP. A setup is a setup is a setup. So if a Setup occurs and is not confirmed/supported by eWave count, I will give The Setup priority. Don't forget, a wave 3 also has 3 waves in it so eWave is too subjective and can turn/change its count any minute still it gives you 50% edge which is a huge edge, add the setup to it and you have confluence.

I hope this make sense.

[Nikita]

It really make sense. Thanks for your feedback!

[immy]

Today I asked a clever girl who traded a small account and nearly lost it all. She was nimble, taking care of two kids still able to put a trade here and there. So I said, "can you tell me how you lost all the money" she responded within a single second, "Incorrect exits, no stop losses and increasing lot sizes" She had no fear of trading, rather excitement but not overly excited, I'd say she remained pretty calm during all this process. Pretty busy girl. Yet, she lost nearly all the money. And what amazes me is that she told me about her short comings instantly. What a clever girl. She will eventually, if she corrects these mistakes eventually, become very successful at trading and make a lot of money. Let me tell you what it means in trading terms what she told me.

Three Biggest Mistakes Traders Make.

1. Incorrect Exits : We can all learn to make entries and its so easy and simple. Yes, I used the word easy, because entries is very easy, anyone can do it. But when it comes to exits, its a hard job. Getting the exits right is what defines the difference between the 1% and 99%. It is what keeps 99% of the traders lose money consistently. Bad exits. It means, getting out too early, too late, without exit signal. It means getting out just before it was supposed to break out and become a great profitable trade, it means, getting out without a plan.

2. No Risk Control (Bad Risk Management) : (No Stop Losses) Without a stop loss you're risking all of your money and your house mortgage on top of it. There is no discussion here. All traders must have a stop loss, small or big is another debate, but there MUST be a stop loss. Period.

3. Bad Money Management: She used to increase her lot size, so that she could recover the lost money quickly. That is a typical gambling mentality. When you lose a penny, you want to risk another one so that you can make 2 pennies. That is not how trading is done. Trading is a pattern recognition numbers/probability game. You have to identify an edge, and edge that gives you a statistical advantage e, and you have to use correct Lost Sizes, to benefit from the edge. E.g. you may have found a pattern in the market that repeats frequently and gives you an edge of 1:2 50% of the time. Which means, that if you traded this pattern there are 50% chances that you will make twice as much as you risk. So for every pound you lose you make 2 pounds. Eventually you will be the winner at the end of 10, 20 or 1000 trades. Add to this the power of compounding and your laughing.

What a clever girl but yet to make money! All she needs is AIMS Stress Free Trading and The money management techniques described in Chapter 4 of the book. And of course there is a lot more to learn and add to your trading arsenal inside our precious forum only for AIMS members.

Have a great evening. I wish you love, happiness and Eternal Joy!

[francisrama]

Could that mean, that if w5 doesnt appear within a long time, we can think that market doesnt want to go this way?

Lets put it this way.

There is always only 50% chance of Wave 3 happening (that is biggest green peak on eWave within the last 140 candles/bars for Uptrend or biggest Red peak on eWave within the last 140 candles/bars for down trend). Once Wave 3 is spotted there is always only 50% chance of Wave 4 happening and wave 4 is based 50% on the confirmation of wave 3, and wave 4 is at least cross of zero line in the opposite direction of wave 3, ie. cross of zero line red against a green wave 3 or vice versa. Then there is always only 50% chance of Wave 5 happening after wave 4 (i.e cross of ZL against wave 3 peaks) and so on and so forth. Wave 3 is only 75% confirmed after wave 4 is confirmed confirmed 50% i.e. cross of ZL, and wave 3 will be 100% confirmed when Wave 5 is confirmed that is Divergence of eWave after wave 4. So if you sit there trying to catch wave 5, at that time, wave 3 and wave 4 are both only partially confirmed and if price does not make a wave 5 that means both "what you thought were wave 4 and wave 3 were not wave 4 and wave 3 and they were something else.

This is why it is essential to learn to be IN THE NOW. Remember we do NOT trade elliott wave (apart from Fran haha) we trade THE SETUP. A setup is a setup is a setup. So if a Setup occurs and is not confirmed/supported by eWave count, I will give The Setup priority. Don't forget, a wave 3 also has 3 waves in it so eWave is too subjective and can turn/change its count any minute still it gives you 50% edge which is a huge edge, add the setup to it and you have confluence.

I hope this make sense.

Hi Immy,

I'm not trading EW per se = I don't place stop or limit entries. Rather I do use EW -and other techniques" to understand market structure, where price is. Once clear enough, I move to AIMS ...waiting for that set-up hopefully in "my" direction

KR

[kooky]

Sounds like me Immy,but I cant agree with the statement :

" Yes, I used the word easy, because entries is very easy, anyone can do it ",

because I cant even find these.
kooky

[immy]

Sounds like me Immy,but I cant agree with the statement :

" Yes, I used the word easy, because entries is very easy, anyone can do it ",

because I cant even find these.
kooky

Press f9 a window will pop up then click buy or sell. But when you exit it will be hard.
If you cannot find the setup then i suggest you join us in the chatroom and be regular.

Im sure it will help you. Im always there around london open and so is Darren Erik Grant Sam Dave etc etc

[immy]

A piece from Chatroom!

Immy: Today was the day, which a fine example of what we discussed the other day. When you see a H1 nicely trending, but There is no chance for H1 S1/S2 entry because histogram is too big and gator's been open for long. you go to lower time frame. because two htings are confirmed. one the trend, 2 momentum. your mind will always say, "trend is ending, now its going to reverse" reject that "thought" and go with what you SEE"! 11:38

Immy: but at the end, a few mintues ago, M1 prevailed. 11:38

Immy: A very importat point to repeat. using the M5/M1 strategy, we spot our initial breakouts, "into wave3" on m5 and can even trade it on m5. when wave 3 confirmed, we trade wave 5, on m1 with open gator on m5. this is very important. those who understood this bit, are at least in the next stage.

below relevant pictures

Picture One. EU H1, this am, trend was confirmed, momentum was strong but no entry on h1, what to do?




Picture two: EU M15, drop to m15 and find an S1 (The fresh Cross of ZL and Break of AIMS, sing away Erik)



And where to exit, well you could plan TZ1a? what is it?

[Darren]

Picture perfect!