Skip to main content

A Paradigm Shift - A post from 28th Nov 2010

Until today,

I understood that price = candles/bars/line graph
I understood that indicators = add a further dimension to the above. that it takes info from the candles and recreates it.

My understanding now is that

Since price is a level where traders agree over price and disagree over value at a specific point of time.

We then see them from the following 4 dimensions.

1. Chart of Candlesticks (or Bars/Line Graph) - Representation of the above agreed level/s using Time dimension. (e.g. where was the price at a certain point "a" i.e. open of the candle, in time? ) OHLC

2. Alligator ( A combination of 3 Balance Lines based on Chaos)

3. AIMS - The structure of the structure - based on the fractal geometry of EW - (it took such a long time to truly realise and understand that at any given point when you view the charts you are at a certain degree of zoom in/out inside an AIMS BOX. AIMS boxes is the Mandelbrot set of the market. Just like we see Sierpinski Triangle and it always looks the same, the charts are all AIMS boxes.

4. AO - A histogram of convergence and divergence between a 5 simple moving average plotted over 34 simple moving average and shown as histogram.

Until today I considered the "candles" as the price.

Then I experienced a huge paradigm shift.

Now I understand that each of the above are separate unique dimensions that you can use to view the market.

The Candles -

e.g. The AO - I thought AO take info from the "candles" then shows it like bars. I thought it took information from OHLC and and the moving averages
now I believe that AO is a unique separate "dimension" of looking at price. If you were to look at AO only and make decision u wont be doing anything wrong.
likewise you can trade AIMS without anything else. e.g. u are inside an AIMS level (BOX) on H4 like we were the other day. U cannot enter the market untill it breaks out of it.
you zoom in and break down the box. Inside you find price inside an AIMS box but with smaller fractal number ie.e the dimensions of the fractal (X and Y axis, and the question arises, is there a Z axis, 3D?)
so for instance the distance b/w upper and lower aims level on H4 was 100 pips. on a H1 chart the distance of the AIMS box u see now was only 30pips. u zoom in further all the way to m1 and find that price
is in an aims box of 10pips.
similar could be said for Alligator and candles.

a fruit for thought. I hope it makes sense .

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…