A little confusion about M1 and M5

[naqviimran]

Hi Immy/John/Grant,

I know the purpose of looking into M5 charts and trading entries on M1, which, is trade on M1 but in the direction of M5. But I need to dismantle one longstanding confusion with regards to making entries on M1. Plz don't mind my stupid questions, as they may seem to be simple for you.

Okay, so when I see a setup 1 (alligator asleep) on M1, what is the recommended practice is to look at M5 if it has a setup 2 (alligator's mouth open) or not. Now if M5 also has a setup 1, then we wait for the breakout on the M5 AIMS level. So when that happens of M5, is it not possible that I may have already missed my entry on M1. Am I right or wrong?

Moreover, can one of the experts, give me a simple step-wise direction to putting pending orders on M1 by looking at M5. This will clear my confusion once and for all.


Please help me. It has been a week, since I bought the system and I have not been able to make a single trade (demo or live), since I want to be very clear with setups first.

[immy]

Imran!

Lets keep it simple. According to the book set your charts up. M5 to the left M1 to Right, either on One Screen or two screens. The Pull the Flow Chart and Wait for the Dots. Keep your eyes on the dots of M1, not M5. M5 is your birds eye view. M5 is Looking at London from London Eye! while M1 is Driving or walking through the streets. What I mean to say is that you're looking at the same thing but different dimensions. We have a field of vision and within that we have a focus point. We, using our eyes, e.g. see a whole picture but most of it is blurred out, we focus on one specific point at a time. M5 is your broad vision where as M1 is your point of focus.

So wait for dot, then start checking the three Rules, which have been elegantly broken down in to logical steps for you to understand. This is akin to your first ride on the bicycle with your daddy holding your back. LOL! but with practice and consistency a time comes when you dont even know what you're doing but you're doing it bloody good!

If you follow the flow chart your question will be automatically answered!

cheers

[Randy Cha]

Greetings Immy and Grant,

Many thanks to producing a good trading system! And I like the 3 rules flow chart - very simple to follow. Really appreciate your effort and time.

I just gotten the program a few days back and I have some questions regarding the setup 1 and 2 as well.

From the 3 rules flow chart, it appears to me that the M1 chart is the one chart that we focus primarily. After the dot appears on the M1 chart, we would check whether the alligator in M1 chart is sleeping or awake. And from there, we move down the flow chart to complete our setup.

My questions are as follows:

1) Does it matter whether the Alligator in M5 chart is sleeping or awake at all? Correct me, if I am wrong ... but I don't think it matters.

2) In the flow chart, what do you mean by "Is purple line correct?" And what significance is there for the purple line to be in or outside the AIMS box?

3) On page 61 of your manual, the setup on M1 chart should be a setup 1. The alligator lines are intertwined. Why do you treat it as a setup 2? Please advise.

4) For setup 2, we will set our pending order using the upper or lower AIMS level of the 1st AIMS box (i.e. the first fresh AIMS BOX that formed after the dot appeared) in M1 chart ... is that correct? But how do we know when or whether the 1st AIMS box is drawn completely? If this 1st AIMS box is not completed, then we cannot set our pending order.

5) On ranging days, we will have many red and blue dots appearing in M1 chart. How do we know which dot should we take a trade? Is there any confirmation sign? You mentioned we can make use of the Alligator lines but I believe on ranging days, they will also be intertwined. We could easily be tricked into trading setup 1 and only realized very soon that we are in a bad trade. So any advice on this? Should we look at the M5 chart now for more info? Or can we make use of where the purple line is, (inside or outside the AIMS box), to make some decision?

6) The M5 chart only serves its primary usefulness when we are trading DOUBLE AIMS Level or when the AIMS levels on M1 and M5 are close. Am I correct to say that? But seriously, when the AIMS levels on M1 and M5 are close, it really doesn't matter which one I adopt unless the AIMS level in M5 chart is slightly higher or lower than the higher AIMS or lower AIMS level in M1 chart ... then we will choose the M5 chart.

Please enlighten.

Rgds, Randy

[immy]

My questions are as follows:

1) Does it matter whether the Alligator in M5 chart is sleeping or awake at all? Correct me, if I am wrong ... but I don't think it matters.
Ans: It Does. We Take entries on M1 in the direction of trend on m5. Alligator is our compass, it tells us the trend. When the alligator mouth is open on m5, we are in an impulse wave on m5, hence we want to trade impulse waves on m1 only in that direction. e.g. M5 alligator is open to downside, you'd wait for setup 1 or 2 to sell eur/usd. To filter going against the trend on m5 we have the purple. Rule. I believe 2-3 reads of the book may help understand this concept. What helps the most is chart time. Just sitting watching, observing the chart without trading so that your mind remains cool and relax. We live in a universe of fractals!

2) In the flow chart, what do you mean by "Is purple line correct?" And what significance is there for the purple line to be in or outside the AIMS box?
Ans: As above, we dont want to trade agains the trend on M5 and we use purple as a minimum requirement for that. Purple as you may know, is the Red line of alligator of m5, but displayed on m1 as purple dotted line. So we dont want to trade into the alligator mouth of m5, on m1 it means we do not want to trade towards purple. We want to trade away from purple ie. away from, in the direction of Alligators mouth.

3) On page 61 of your manual, the setup on M1 chart should be a setup 1. The alligator lines are intertwined. Why do you treat it as a setup 2? Please advise.
Ans: M5 is a Setup 1 all along whereas on m1 chart there is Setup 1 followed by Setup 2 ie the second break of AIMS Box outside Alligator's mouth.

4) For setup 2, we will set our pending order using the upper or lower AIMS level of the 1st AIMS box (i.e. the first fresh AIMS BOX that formed after the dot appeared) in M1 chart ... is that correct? But how do we know when or whether the 1st AIMS box is drawn completely? If this 1st AIMS box is not completed, then we cannot set our pending order.
Ans: Sorry I really dont understand your question. it must be my fault I'm feeling a bit out of focus this am.

5) On ranging days, we will have many red and blue dots appearing in M1 chart. How do we know which dot should we take a trade? Is there any confirmation sign? You mentioned we can make use of the Alligator lines but I believe on ranging days, they will also be intertwined. We could easily be tricked into trading setup 1 and only realized very soon that we are in a bad trade. So any advice on this? Should we look at the M5 chart now for more info? Or can we make use of where the purple line is, (inside or outside the AIMS box), to make some decision?
Ans: The Answer is Simple, take trend direction from M5 and use the Flow Chart Steps and /or wait for alligator to properly sleep on m5 and then take setups only when price breaks out of range on m5, so wait for trend to confirm then take entries on m1 in that direction. simple. If you cannot tell what is the trend on m5, dont trade. Patience and discipline!

6) The M5 chart only serves its primary usefulness when we are trading DOUBLE AIMS Level or when the AIMS levels on M1 and M5 are close. Am I correct to say that? But seriously, when the AIMS levels on M1 and M5 are close, it really doesn't matter which one I adopt unless the AIMS level in M5 chart is slightly higher or lower than the higher AIMS or lower AIMS level in M1 chart ... then we will choose the M5 chart.
Ans: I beg to disagree. M5 and M1 for me is the same. I take all the information from m5 and m1. Though I remain focused on m1 I always am aware of the situation on m1. M5 is my Aerial View from the chopper or Empire State building where as m1 is my action space, the streets. I recommend reading the manual with a fresh mind. Consider this , and it really is, a new concept. It requires a bit of a paradigm shift to really understand the edge that we share with you here! All of the above is My Humble Opinion


May the pips be with you.


Please enlighten.

Rgds, Randy

[Randy Cha]

Greetings Immy,

Thanks for prompt reply.

Your system is very good and the working concept is solid.

It is my bad for making things complicated.

Some of your answers to my questions - I comprehended.

But there are some answers which I don't - I will re-read the manual, digest and mull for a while more before I ask you again.

But there is this question I must ask first ... if we are preparing for a sell trade, we will place our pending order 1 pip below the lower AIMS level in the M1 chart. My question is how do we know when an AIMS box is completed, i.e., when can we know the lower AIMS level is not changing anymore? Only when the lower AIMS level is not changing, then I can add 1 pip to it and set my pending order there.

I hope you can advise me on that.

Rgds, Randy

[immy]

Greetings Immy,

Thanks for prompt reply.

Your system is very good and the working concept is solid.

It is my bad for making things complicated.

Some of your answers to my questions - I comprehended.

But there are some answers which I don't - I will re-read the manual, digest and mull for a while more before I ask you again.

But there is this question I must ask first ... if we are preparing for a sell trade, we will place our pending order 1 pip below the lower AIMS level in the M1 chart. My question is how do we know when an AIMS box is completed, i.e., when can we know the lower AIMS level is not changing anymore? Only when the lower AIMS level is not changing, then I can add 1 pip to it and set my pending order there.

I hope you can advise me on that.

Rgds, Randy

Hi Randy

AIMS Box V5 does not repaint/change. Once its formed its formed forever and ever! :ymcowboy:

cheers

Immy

[Randy Cha]

Immy, thanks for the reply. Got it!

As I browsed through and read more of my peers questions and your replies to them in the forum, I now believe I am so wrong when I said whatever happens in M5 is not important.

M5 triggers everything. Regardless of trending days or ranging days, if M5's alligator is sleeping, we will wait until it opens its mouth and then we move to M1 chart to check the setup - presence of dots, M1 alligator sleeping or awake, etc.

When M5's alligator opens and M1's alligator sleeps, we will ONLY trade in the direction of M5 (away from the purple line, not towards the purple line). The AIMS level of the M1 box may not be broken yet but we just place pending order below or above the bottom or top of the AIMS level, depending on where the M5's alligator mouth open to. At this stage, the AO should also be close to zero and the difference in pips between the upper and lower AIMS level should be tight (< 10 - 15 pips - Steve's multi-fib indy will give us this info easily).

When M5's alligator opens and M1's alligator also opens, then we have to look out for the breakout of the 1st AIMS Box. Over here, the pending order should now be placed below or above the bottom or top AIMS levels of the 1st AIMS Box.

If both M5's aligator and M1's aligator are asleep, then we can do bracketing but this may not be necessary because we can just wait for the M5's alligator to open its mouth. After that, it's back to SOP.

So, having M5 and M1 charts side-by-side really give us the trading edge ... imagine you only have a M1 chart, how can we know whether the M5's alligator is awake or sleeping?

Immy, am I getting most of my thoughts correct now?

[immy]

(wd) (wd) (hug)

Correcto! Nice one Randy! You have nailed it!

The answer to your question is 1. just switch time frame check, (I am certainly not saying that you should have your m5 switched off, rather I always recommend displaying both charts side by side).
2. watch where the purple line is!
a. if purple is inside aims and alligator is sleeping on m1, it is possible that m5 alligator may be asleep too, but its not always the case, may be price, on m5, is coming back to alligators mouth or may be trend is reversing.

This is exactly the reason why we keep both the charts up!

Let the Dots guide you to success!

and May the Pips be with you!

cheers

Immy