read ebook couple of times now have three questions please

[chris2var]

Hi,

I purchased the eBook etc last week (Friday 20th Jan), have read though it a couple of times and now have three questions as below which I would like clarified for me.

1- On page 35 “when AO changes to darker tones we stop trading” does this mean
a- If for example we have had a blue dot where a ZL cross over occurred earlier to the upside (i.e. valid trade setup condition) and now where the momentum is declining have a AIMS box breakout to the upside that we do not trade this?
b- If we are already in a trade ,for example a buy and the AO changes to a darker green do we exit the trade?
2- On page 59 “ setup 2 is usually on the break of the 2nd AIMS box” and yet none of the examples shown are from the 2nd AIMS box. They are from the 1st AIMS box with the exception of the last two (on page 62) being from the 5 min AIMS box (because of closeness to M5 I assume). Also I can’t see a valid setup 2 on the last example (page 62) as the last red dot on M1 would appear to be invalid due to sleeping M5. That’s what it looks like to me unless I am interpreting this incorrectly.

More confusing than that is the “3 rule flow chart” which states for setup 2 “is there a fresh AIMS level after dot” which I understand as “is there a new AIMS box after the dot” and if not then no trade! Yet two the examples are with the 1st AIMS box.

I long ago purchased both versions of “Bill Williams – Trading Chaos” books and I must say I think your explanation and system so far appear to be easier to understand.

Thanks is advance …
Chris2var

[John Wimberley]

Hi,

I purchased the eBook etc last week (Friday 20th Jan), have read though it a couple of times and now have three questions as below which I would like clarified for me.

1- On page 35 “when AO changes to darker tones we stop trading” does this mean
a- If for example we have had a blue dot where a ZL cross over occurred earlier to the upside (i.e. valid trade setup condition) and now where the momentum is declining have a AIMS box breakout to the upside that we do not trade this?
We need to look to the M5 to gauge direction. Dark Green does mean a decline in momentum, but not necessarily divergence. Divergence is when we have 2 light green bars sloping towards the ZL.
b- If we are already in a trade ,for example a buy and the AO changes to a darker green do we exit the trade?
Not necessarily. Again, we need to beware of price action.
2- On page 59 “ setup 2 is usually on the break of the 2nd AIMS box” and yet none of the examples shown are from the 2nd AIMS box. They are from the 1st AIMS box with the exception of the last two (on page 62) being from the 5 min AIMS box (because of closeness to M5 I assume). Also I can’t see a valid setup 2 on the last example (page 62) as the last red dot on M1 would appear to be invalid due to sleeping M5. That’s what it looks like to me unless I am interpreting this incorrectly.

We love sleeping alligators, so it is a valid setup.
More confusing than that is the “3 rule flow chart” which states for setup 2 “is there a fresh AIMS level after dot” which I understand as “is there a new AIMS box after the dot” and if not then no trade! Yet two the examples are with the 1st AIMS box.
Yes, we should wait for a fresh AIMS on Setup 2.

I long ago purchased both versions of “Bill Williams – Trading Chaos” books and I must say I think your explanation and system so far appear to be easier to understand.

I hope this helps

[chris2var]

Thanks for that, John.