Question on Setup

[Bettina]

Hi, I wonder whether and why I could have taken the recent wave down in EU. It was just below purple, but first black and then pink.
It looked like wave 1 and 2, but eWaves indicated a wave 5 and AO was not fresh, near lows to the left - so I didn't take it ???
M5 had a black dot but H1 had a red one ??

Bettina

[immy]

Hi Bettina

you could have taken and you could not have. Here is what we did
Immy: Did not take it, trend on M5 was not really confirmed, H1 was playing up, was still in congestion zone. But was not a bad setup if you wanted to time a breaktout trade with M5. I rather like the ones thats already broken off m5 and sets up on m1.
Grant: did not trade it due to m5 levels
Erik: took it and made some good pips, he thought timing m5 break was ok for him at that day!

Cheers

Immy

[Herbert]

For me price stepped lower into lower congestion channel under good S/R level, and ewave was correct on w5 at the time, See pic for RSI(5) subwave divergence.
Good trade opportunity.

Herbert

2903a.png

[Bettina]

Hi Immy,

thx a lot for your answer !
So it was questionable and I book that as success in terms of getting the feeling, even if the pips are gone.
Afterwards I thought, that must have been an obvious setup, but it wasn't - nice.

Herbert, what do you exactly mean by "congestion channel " ? AO didn't diverge, but also your RSI divergence is not really a reason to take the trade, is it ?
Bettina

[Herbert]

Bettina. Looking at pic above we see price trading above the orange line (congestionA), then broke below it and traded underneath it testing it twice (congestionB)
The regular divergence i show depicts end of impulse subwave (1), breaking out of congestionA, thus making following wave up (2), also with hidden bearish divergence on RSI against blue balance line.

Ewave at the time assigned 3 on 1st AO low from ZL looking at it's momentum, expecting 5.

Herbert

[Bettina]

Hi all, what's your opinion on that one :

could I have taken the longs at 1 or 2 or 3, even if AO had no fresh cross of ZL ? M5 Alligator had opened to the upside !

Was all the time waiting for a w5 to the downside ?

Bettina

[Grant]

Hi Bettina,

your dot numbered 1, 2 and 3 were all no trades for me. Heres why :

1. AO old and diverged
2. same as 1, but was close enough to 0 line, so it depends on how strict you entry rules are and if you bend them......
3. AO old and too far from 0 line on the correct side.

Despite the above the green dot to the left of your number 1 was a trade and depending on how you managed it could have paid 20 ish pips. I managed 5 as i closed on a candle trail...

hope this helps

Grant

[Herbert]

Hey Bettina. As Grant pointed out, left of point 1 was a setup1.

As Grant said, IF your rule set allows it, in my opinion point 1 was a setup 2 as 1st break out of box happened before it while alli was asleep. setup 1 as above.
The AIMS manual specifies a setup 2 as 2nd aims box breakout out of alligator mouth, no AO zl requirement.

Again, as Grant mentioned, momentum was bit weak,sideways and divergent, difficult call.
Herbert

[Bettina]

Hi Grant and herbert,

thx for your answers.
Grant, I know, that these wer no entries for you. But at least 2 and 3 were classical add-on situations.
And an add-on is nothing else than a new trade.
I didn't take the green one, first because it was green ( the old problem : aims box was 31612 and the green candle high 31613 ) and second because M5 was still sleeping.
But these are my hesitations always.

Bettina

[Tomi]

Hi Bettina

I was on screen just when those 3 dots came and I didn't took any of those due to alligator not intertwined (was that a word?!) and old AO. For preceding green dot I was not around and missed it. I was thinking these 3 dots as add-ons but I'm not taking add-ons yet.