Ralf's Journal

[Skywalker]

Today’s morning session started with a short fruit between FO and LO which turned out to be invalid but I missed the SAR for a nice up-trend move. Instead, I tried a short fruit with angulation but momentum was still up. Later I took a short fruit (questionable angulation) with add-on at saddle point but closed at AIMS level.

[immy]

Today’s morning session started with a short fruit between FO and LO which turned out to be invalid but I missed the SAR for a nice up-trend move. Instead, I tried a short fruit with angulation but momentum was still up. Later I took a short fruit (questionable angulation) with add-on at saddle point but closed at AIMS level.

Understanding Angle Within Strong Up or Down Markts


I'd like to make an observation. There are micro moves within strong wave 3's (strong impulse waves) when the market further pulls away from already steep move. Thats when Fruit on the peak of wave 3 or wave 5 becomes more interesting.

I've redrawn on your picture. What we see using the blue arrows is that within that period of the trend the market was strong up but parallel. It might not make sense to some but after careful observation of several different charts hopefully you will begin to understand this.

when its a parallel strong up or down market we look for those micro moves that further extend from already steep move such as the black dashed arrow. nothing like that happened here. Even though your short punt was not bad at all. if look at the maroon dashed lines there was good angle there but later market simply continued strongly up without diverging angle. makes sense?

[Skywalker]

Thank you very much Immy for your elaboration on micro moves within strong waves 3; very interesting and helpful. I agree that the angle is not very good for this fruit but I thought there was at least some. Here the chart with my drawings; it's based on the 10:00 CET fruit (orange).

[immy]

The angle we check angle of the price bars agains the "Averages" so if the averages are steeply upwards it will have to create even faster price action to "diverge" away from the averages. I'll try to find an example...

3 things will happen at the peak of an impulse wave.
1. Price further pulls away from the already strong impulse wave creating the "last gasp" effect. A good Reversal situation, lookout of Fruit signals.
2. Price gradually loses momentum eWave turns around and price slowly comes back into gators mouth. and breaks out in the opposite direction and trend reverses. Fruit will also appear but with no or less angle.
3. price turns around and gator goes to sleep and later on breaks out into another impulse wave in the direction of previous wave.

The above are just a few of the possibilities. Remember to Remember that WE DO NOT PREDICT. We trade THE NOW> IN THE NOW THE NOW. So we look at the chart and ask, Is this a setup? if it is we take it. What happens next is not in our control. The trade may bring positive or negative pips in either case its a winner if its according to rules and loser if rules were broken regardless if it brings positive pips or negative balances.

[Skywalker]

At today's NEO I set a long and short PO at AIMS box of which the long had been triggered. With the next bar a valid fruit appeared which then turned out to be invalid but I used it to add on. I then tried to stick to my trading plan and used green line for exit.

This was a good trade for me as I stuck to my rules and "survived" the period when the price retraced from an up move after add-on and I'm tempted to reduce risk by trailing candles or moving SL below invalid fruit.

[Skywalker]

Thanks Immy! I'll think through your statement about price options at the peak of an impulse wave.

[Tracker]

nice trade, skywalker. what was the signal for your Add On?

Cheers, Tracker

[Skywalker]

Thank you Mr. Tracker, I used the invalid short fruit to add-on (SAR).

[immy]

Hi Ralf!

I know what you've done, Michael "invented" something like this as well but I'll have to re-read the ebook. I don't think this add on is mentioned there hehe.
I did take an add on there as well, but i was on m1 and took an aims level which happened to be the same level coincidently. adding on is a good thing but we have to maintain a structure "SAR for Add on" thats just an imaginary thing. why? if you were never in a short trade then how did you stop and reverse? thit bit was imaginary. Its like, if i was short here, then i would have stopped and reversed here so lets just go long.

happy trading.

[Skywalker]

Can't remember whether I've spotted it in yours or Michael's journal but I see your point. So lets stick to AIMS levels for add-ons (like in my trading plan )