THE NEW Strategy --- THe iMi Method

[immy]

Where is Price Going? Where will it Stop?

[Tomi]

Whooa. This thread needs few cups of coffee and some time in the simulator. Looks like a lot of fun!

[immy]

D1 Bar Formations, trade them on H1. Lesss Risk More reward and we get to benefit from the initial strong momentum.

04-08-2016 15-48-18.png

04-08-2016 15-49-22.png

04-08-2016 15-50-42.png

04-08-2016 15-53-21.png

04-08-2016 15-56-02.png

[immy]

Martin Pring came up with this, I don't take the credit. Never have never will.

Some Ground Rules for Bar Formations by Pring

All one and two bar price patterns must be preceded by a short-term up or down rend.

so there should be something before this not just within a tight sideways market. We need some space because what's important after spotting the bars is the Question "Where is price going?".

her says

One and two bar patterns are usually short-term reversal phenomena

So they are mostly used for reversals but short term reversals. What does he mean by that? the charts below will show, hopefully.

he further adds

these patterns indicate exhaustion, where market psychology has reached a short-term extreme

here comes the angle and space again. Like the fruit pattern requires that price creates an angle.

and that's it. If you understood the above, it will be better for you. You will then be able to know which ones are the ones to take and which ones to ignore.



Bearish Outside Bar:

Outside bars are reversal patterns that indicate change of sentiment

Its a Two Bar Price Pattern. (The Fruit has it within it. Many fruits are Outside Bars and Pin Bars)

The High of current bar is higher than the previous bar, the low of current bar is lower than the previous bar and the close is within the lower half of the bar, better if within the lower 3rd and even better (preferably ) if the close is lower than previous bars low.

BeOB.png

Find these bars, near wave 3 peak, wave 4 (wave c peak) b trap, PC, Wave 5 peak. etc.

Then you have the Inside Bars The SEEDS

Inside bars indicate that prevailing momentum has dissipated because buyers and sellers are now equally matched..

So we want a bar or two , strong ones, before the seeds. When we do this at Open time, we will be on the correct side of the Open line. Trade the Seeds that have a momentum bar or price action before it.

We can trade these with momentum or at pullbacks picking the peaks of corrections (wave c)

to be continued

[immy]

Assuming you've completed your Trading Plan and you're at least in Stage 3, you have now found what type of trader you are, what is your trading style and what do you want from trading. Based on that the following 3 options will help you in terms of how to take profits on these find "Low Risk Entries".


Option 1. Day Trade - Exit all positions by the end of the day thin 1:2 to 1:5
Option 2. Swing Trade - Exit based on trailing the h1 swings, ie. simply trail the box (intelligently) think 1:5 to 1:15
Option 3. The Most Profitable and the hardest. Established a strong opinion about longer term trend. and then pursue that by finding low risk positions and pile them up and allow them to run on higher time frames. Think 1:100 to 1:250

[immy]

@pp, you can post all your trades here if you like. same goes for you darren. The members of this section are only 4.

[immy]

The Outside BARS Continued...

this is previous USD/JPY post



and now lets look at it again

US outside bars.png

A Bullish Outside bar on the 26th of August. Lets look at it on d1 first.
The blue box will be visible on H1 chart.
So we have a strong outside bar, which has gone strongly out of the box range on d1. so on h1 we will see a strong 3 (using our AIMS normal template). and the following day is up but not as strong. The day later, on the h1 chart, we see a great seed and box long.

2016-09-10_19-20-59.png

Now check the H1 chart and its possibilities.
We see a Short signal the next day, which if taken would a small profit or a BE. but we will be more keen to catch longs.

Price went to touch the high of the OB on 26 (high of the 26th on h1 chart).

Next day market opens above Open Line. and forms a box level above the price action of OB and the day after. Now we are in the clear. We have a smashing long trade.

2016-09-10_19-24-27.png

[immy]

Thte AUD/USD OB is anotehr great example.

D1 Chart of AU marked Bearish OB

2016-09-10_19-30-48.png

H1 Chart

The red line is low of the OB bar on d1 and the next day, preice break below the low of OB and then creates a nice LOW RISK Seed. Bang we are in short. We could have let this one run.

2016-09-10_19-31-59.png

[immy]

Next post will be useful for Swing Trading. Where is Price Going... this is a great question.

We gotta make use of Price Bars Lows and Highs on a D1 Chart. Simple and easy peasy.

[immy]

Lets look at EUR/USD Signal we took on Friday.

1. Was this a good Seed, Yes it was, now we know it but was it a good spot before we saw the down move. That's the question?