Setup turns correct ...

[Randy Cha]

Hi Immy and AIMSters seniors,

This is Randy again. After my previous failed attempt, this is my second trial.

I received a BUY alert on M5. I saw a GREEN dot instead of a BLUE one. Only 15 mins later, then I saw the BLUE dot appeared on M5 chart.

120123_chart 7.gif

I am not sure whether the GREEN dot alert is good enough. Anyway, I went ahead and prepared my trades in M1. I decided to trade 2 lots because if there is really a breakout, it would be sweet. If not, I will recoup some of my losses. Here is how the trade turns out.

120123_chart 8.gif

Along the way, I took profit for first lot (+15 pips - hard profit) and added 1 more lot, because there is no strong resistance levels above the breakout and we have two blue dots. Later, I took profit for second lot (+30 pips - hard profit) and after checking the market momentum and seeing candle bodies becoming smaller, I decided to manual exit my final lot (+23 pips - manual exit). Along the way I shifted my SLs. Since I am watching the market, I did not apply trailing SL. As I have not completely understood trailing candles, I also did not implement it.

My questions are:
1) Must I always wait for the BLUE dot to appear on M5 to go LONG - vice versa for red dot and SHORT trades? Or just hear the sound alert? In this case, I placed my order on seeing the GREEN dot (but correct sound alert) and it turned out okay.

2) Next, I placed my pending order after seeing the 1st BLUE dot in M1 chart (with the vertical yellow line). At this time, AO is close to ZL because I saw ORANGE bars. However, on the M5 chart, the yellow line cuts the 5 min GREEN bar without the BLUE dot. If I were to wait for the next 5 min GREEN bar with the BLUE dot to appear and then take action, then I will be using the 2nd BLUE dot in the M1 chart, instead of the 1st one, to placed my pending order. This would be better because the AIMS levels here are tighter. However, this time the AO is showing GREEN bars instead of ORANGE bars, implying AO is not close to ZL.

Immy and AIMSters seniors, what will be your action plan if you were in my situation? Please advise.

Thanks in advance, Randy

[Grant]

Morning,

to answer you questions :

1. I only listen for the dot alerts on the m1 chart, if you wait for a dot on m5 then move to the m1 chart then you are "usually but not always" too late for that move.

2. If you were wanting to place a pending order then you did so at the correct time, we see a blue dot so we are looking at a set up 1 scenario, the PO can be placed above the m1 aims level, which is exactly what you did. Just a quick comment if i may be so bold, your PO was placed just below the m15 and h1 aims levels, i'm not saying that its wrong but just be aware that they are in the vicinity and could cause price to react against your trade. For that reason i personally didnt take this entry.

Overall i just use the M1 purple line and the m5 aims levels. This gives me enough information about what the m5 chart is doing....

hope this helps

Grant

[Randy Cha]

Greetings Grant,

Thanks for the insight. But sometimes, M1 and M5 can give conflicting alerts.

My current approach now is waiting for a sleeping M5 alligator to be awake, then I prepare my trades in M1. Do you see a big problem here?

I placed my PO there is because this zone has been tested a few times and if it breaks, there should be a lot of vigor.

Rgds, Randy

[Grant]

Randy,

I trade the flow chart so have no real need to look at the m5 chart apart from when answering the questions that directly involve it..

As for the trade itself, yes when broken then there is a lot of momentum in the move. That being said we dont know which move will break it and so for me i like having as many of the probabilities in my favour as possible for taking trades. In this case in my opinion there were too many not in my favour.

There will be better looking trades for me to trade soon...

cheers

Grant

[Randy Cha]

Hi Grant,

Good info & advice. I will take heed.
This time I maybe just lucky.
Thanks much!

Good trading,
Randy