Daily Trade Opportunities anyone ...?

[immy]

Anil

The H4 on NZDUSD turned into a Principle C. It looks like that chart might test the purple up there. or beyond. ! only time will tell but now setting up again.

[flugzeug]

Hello Imy,

I closed as it crossed the uper zone of the alligator and red line, would you agree with closing this.I have done. I took rent of -45 pips, but I am happy as I followed the rules....for once in my life!!!!

USDCAD on the 4hour looks like a good entry but purple line not on the right side.

[immy]

Just as the EURUSD was a bit early entry USDCAD looks like it needs a few more candles for the AO to cross ZL and Alligator to sleep. IMHO

[flugzeug]

Thanks Immy, so my enteries are slightly early. wait to see the cross of the AO and then time the entery, correct?

[flugzeug]

I went short on USDCAD a few days ago. After the event I realise the purple line was not on the correct side, but it is now. I am still in this trade as according to Immy's rules there is no reason to exit (even though after yesterday's price action I would have, but sticking to the system!).

My question is this, if you are above the purple line (on the wrong side), but you think you have divergence on the AO (especially on the higher frames), so you think you have completed wave 5, or C after A, is it OK to take a more aggressive entry on the wrong side of the purple line but using all other rules as normal?

Thanks

[immy]

Hi Anil

This is a perfect aggressive entry. To stop us from taking aggressive reversal trades we started following the purple rule. Keeping the fact in view that the higher time frames are very choppy since 2008 because they are all under the umbrella of fourth wave. Price reverses in a crazy fashion when under the fourth wavey mood! You may want to eliminate the purple rule and follow the Sleeping alligator setup wherever it appears. or keep it there and take setups towards it based on your set of rules. But whenever you do so you should know why exactly are you doing it and what is your exit plan. the loony $cad is certainly under the umbi of 4th wave on the dailies. So when you went short towards purple certainly would mean you went into alligator's mouth on the dailies. I checked the dailies chart and it is certainly inside the alligator's mouth now. If you are trend trading then you probably dont want to do this. Looking for reversal after divergence is a good way of doing it but the only good way is to do it only when price moves to far too fast away from alligator's mouth on e.g. Dailies and in attempt to catch the reversal you trade that on h1. So you initially trade the reversing corrective way which could turn into an impulse wave if the trend resumes in the opposite direction. IMHO

I hope it makes sense

cheers

[flugzeug]

Hi Immy,

So the feedback for next time, if one is to consider a more aggressive entry:

1) Appreciate what the daily is doing and where the alligator is on a significantly higher time frame. I see that on the daily I have indeed traded into the crocodile's mouth.
2) Use divergence for an aggressive entry when you see divergence...(is that what you refer to, I think BW calls this DBD?)

Ill keep you posted how this one works out, would you advise to keep following the rules as per the dot alert for the exit?

Thanks

[immy]

Anil

Since you trade the higher time frames you can chose to go with two options.
1. dots and/or close on green line (close not touch) = Normal Moving Markets
3. Start Trailing after 5 consecutive red/green canldes = Protect profits in fast moving markets. At 1:1 bring to BE at 1:2 start looking for exits.

[immy]

Anil

I can see the H4 is going down nicely. You should have realised 1:1.3 by now! have fun with it! Nice one

[flugzeug]

Hi Immy,

I closed my USDCAD short as I am away at my mum's for Christmas. I would like to give her my undivided attention, so I thought best to play it safe.

I attach a chart for my journal. I went short at 324, closed at 191, hence a 133 pip profit. I risked 59 pips on the other side of the alligator.

Many thanks for your guidance. I will lay in wait for the next potential set up.

Warm regards,

Anil