Skip to main content

M5/M1 Trade on EU - Setup 1 and Setup 2 Examples

 The following is a pictorial account of how we trade EUR/USD using our EUR/USD Strategy.
We Display M5 and M1 Charts side by side and compare both charts for entries.
Making sure we trade in the direction of Alligator on M5 (Trend Trading) and while
alligator on M5 is open we wait for Alligator to sleep on M1 to make new trades/entries. Simple.
We also do reversals like this. Which is also simple. if you see price gone too far too fast away from
Alligator on M5, any setup on M1 in opposite direction would be our reversal setup. I'll discuss this some other day in more detail, for now enjoy this story. thanks for watching!

and yes, at 17.25 (chart time) before this trade we took a saddle point entry off M5. For some reason I later exited for 66 pips without an M5 exit signal. I was perhaps in a different sort of mood yesterday. 
Setup 1 - Initial Entry

Here we being a trade off a saddle point 3 Rules are there

Looking at M5 chart you'd see a beautiful Saddle point after 17.20 candle. following or AIMS EA or Red Line could have brought 140pips. Still working on belief system I guess..... nah! it happens just move on...
The Above picture to the right side of the chart or M1, Setup 2 is developing. The two green candles should create an AIMS Level. 

The chart below shows it clearer . Alligator is open if we have this AIMS Level confirmed we will take another trade. 

This is where patience and belief come in handy



Setup 2.  We remained patient and we waited for our exit signal and did not exit just because price was retracing a bit. In fact it was creating a beautiful Setup 2. We have AIMS level now and Alligator is open. Though the "Opposite Side of AIMS",  is a bit away from us but trend is confirmed. Opposite AIMS is the AIMS level where our "maroon" stop loss line is. Upper AIMS are for Long Trades and Lower AIMS are for Short trade. (depending if the criteria for Setup, the Three Rules is Met) 

Some Sigh of relief han! I thought this might create an upper aims level
Here we now have AIMS level advanced warning
Again this is how it looked on M5/M1
here I was thinking "if it just breaks this aims level we will laugh"

Setup 2: Above we see that we now have upper AIMS Level not far from our Entry Spot and its a High probability Setup 2. Had we not entered at Setup 1 we would definitely take this trade. Though on this occasion I did not add on, this is a perfect spot for an add on. 2-3 add on is enough. For beginners I will not recommend adding on. If you are a beginner you need to trade only 1 trade until you remain profitable for at least 6 months. 


So it does, no worries relax chill out!
Since I was targeting peak of 3rd wave, ie. AIMS level on M5 I moved SL to BE (scalping methods)
Since its going just fine we lock in some pips just in case it decides to go crazy nearly there
Nicely done with 20 pips, however following our candles trailing strategy meant +35 pips. 
A Final Look at how it looked using M5/M1 window. Fifth wave Divergence in making on M5, while m1 going to fourth wave.
and here is a picture of a completed EW on M1 towards the end of the day. What a beautiful picture I say....
Please enlarge to fully appreciate the beauty what we call in our Group "Picasso". 


Popular posts from this blog

Count Elliott Wave within 10 Seconds

After Reading this material you should be able to do the following:
Objective 1. Understand Elliott WaveObjective 2. Count Elliott Wave within 10 SecObjective 3. Learn how to use AO
Objective 1


What is Elliott Wave? 

We believe the market has a structure. That structure is Elliott Wave. We also believe that the structure also has a structure and that structure is shown to us on our charts by using our indicator AIMS Levels. EW consists of impulse waves and corrective waves. We are interested in trading the impulse waves and avoid the corrective waves.


Which wave is most profitable and easy to trade?   


Wave 3 is where we make money. Our strategy puts us right into the impulse waves, where the money is made.


Hypothetically, this is how Elliott Wave looks like.



Within each Impulse wave there are 5 waves.  of which wave 1,3,5,  are again impulse waves whereas wave 2 and 4 are corrective waves.

An impulse wave consists of sequence of 5 waves starting from 1 up 2 down 3 up and 4 down an…

Count Elliott Wave in 10 Sec

Example of Setup 1 and Setup 2. In the Chart below the blue arrow that point to the Red Dot is the spot which we Call Setup 1. The next AIMS/Fractal Level immediately after it broke down is what we call Setup 2. At the Red Dot alligator was sleeping. While at the second break Alligator mouth was open to the downside. 
Updated 11:00 BST

How to Trade Wave 3 Make HUGE PROFITS

The most important thing I learned few years ago was that the market was a wave. Well not the market, but the charts that we look at. It always moves in waves. Someone actually named them after themselves but we don't really need that lovely name (Elliott Wave). Because we don't need to complicate things.

When I talk about waves, I don't mean the popular Elliott Wave. I mean the WAVE we have on the most beautiful indicator called, ahem it has many names, AO, The Awesome Oscillator, The eWave, AIMS Wave etc.  It helps us see the market in a smooth wave going above and below a certain Zero Line. .. It helps you ignore the going up and going down of the price concept. For us technical traders, we don't have an up and down as such specially in forex. All we see is eWave turning Red or Green.

Assuming you already know a bit about the wave. I know most of you will want to know the answer this fantastic question. How to trade the third wave?

They all ask that question, and s…