We Use 3 Indicators and One more

Indicators

Bill Williams describes the Alligator as being like a compass which keeps your trading in the right direction. The Alligator helps you spot a real trend and stay out of range-bound trading, which always result in losses. The Alligator is the combination of three balance lines:

Alligator's Jaw (the blue line) - 13-period moving average at the mid price (High+Low)/2, which is offset 8 bars into the future;

Alligator's Teeth (the red line) - 8-period moving average at the mid price (High+Low)/2, which is offset 5 bars into the future;

Alligator's Lips (the green line) - 5-period moving average at the mid price (High+Low)/2, which is offset 2 bars into the future.

Please make sure you understand that the lines are shifted 8 bars in to the future. That is to the right of the screen. Which means that when you look at charts in the past you must understand that when you look at a certain candle e.g. On a One Minute Chart at candle time 8.00  Blue Line will be at 8.08. Red should be at 8.05 and Green at 8.03. So if 8.00 candle had blue dot and you want to check the rules you will have to consider the above. By the way back testing is useless activity. Only good for understanding how the setup looks other than that it is useless because every moment in the market is unique and the past never repeats itself. It might do a similar move but never the same.

Setup Example for Alligator.

I have plotted vertical lines to make it easy to count 1-8 bars to the right of the bar where the Red Dot appears. At the point where the Dot Appeared there were no candles to the right. But the Alligator had shifted its lines 3, 5 and 8 bars in to the future / to the right of the screen. Please go through pictures one by one. 

We begin by looking at the chart with vertical lines. We can estimate where the lines would have been at the time of red dot / candle.

The Alligator Lines did not look like where the dot appeared.

The Lines did not look like this. In the chart below alligator lines are missing. Yes, because they are in to the right of the chart.

In the picture below the black arrows point to where the lines would have been based on their respective shift.

Now Lets cover the chart to the right. 

Another Example: Specially Made for my Friend Engenee

Slide 1

Now Lets Cover the Chart to the Right to see the correct picture

Based on the above 3 charts, we only got alerted to the chart we did not see an entry. We saw potential opportunity but not a proper setup. Only 2 candles later. that is 10 minutes.  We saw what follow

The following picture now has teh vertical lines set to 2 candles after Blue Dot. 

We now have upper AIMS level printed. Which gives us a point to put a pending

WE also have the Alligator lines sleeping. How? Scroll down and you'll find.

Now Lets cover the area to the right and see how it looks

AIMS Levels

AIMS is the name given to our propriety indicator. This is our most important indicator.

The grey shaded area on our charts is AIMS Levels indicator.

When you display AIMS levels on your charts you'd find that it becomes very easy to spot which way is market trending.

Up Trend: AIMS Levels stepping Up-wards.

Down Trend - AIMS Levels stepping down.

Range Bound (Non-Trending Markets) AIMS Levels moving horizontally sideways. I

It works on all time frames. It gives you visual upper and lower level within which price travels. When price breaks out of those levels, depending on Alligator and AO,  we take a trade.

iTradeAIMS AO V2.1

AO is the best indicator in the world. Bill Williams says,

"it is tomorrows Wall Street Journal".

It allows you to count Elliott Wave within 10 Seconds

 

Why is iTradeAIMS AO better than normal AO?

1. It is easier to spot the fourth wave with this colour combinations.

2. It is easier to stay with the trend.
3. Recognising Impulse and Corrective waves is easier.

AIMS Talking Entry Indicator V2

How about when you're on the phone, or reading something or just not paying attention to your screen?

How about when you're in the next room and some one from your computer says, "Euro Dollar Red Dot Five Minute"?

Would you like that? I certainly do even though I'm always on my computer. I think it helps to hear the voice tell me what Dot Colour do I have on which symbol/pair and what time frame. If this is your cup of tea then you wont have to wait any longer

So now we have an indicator to the indicators. When the three indicators are about to get ready and near creating either one of our setups. We get an Alert.


Click to Download Sample File for  EURUSD Blue Dot 5 Min Alert
This is what your computer will say once you install this indicator.

It supports sound alerts for the following symbols/pairs for the time frames mentioned.

EURUSD	M1	M5	M15	H1
GBPUSD	M1	M5	M15	H1
EURJPY	M1	M5	M15	H1
USDJPY		M5	M15	H1
USDCHF		M5	M15	H1
AUDUSD		M5	M15	H1
USDCAD		M5	M15	H1
NZDUSD		M5	M15	H1
EURGBP		M5	M15	H1

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To get the template and indicators click here.

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Everything is Energy and Energy Follows the Path of Least Resistance

The Blue line is the balance. When Price is stuck between aims levels, when upper aims are above the alligator and lower aims are below it, you have reached an equilibrium. A low frequency, low wavelength vibration, the point from where all the greatest trend originate. The longer it stays like that the stronger will be the trend when it breaks out. When this energy (price) is released (break out of the first fractal out of alligators mouth) it will follow the path of least resistance, because energy always follows the path of least resistance. If it breaks above alligators mouth, you are in an up-trend on your chosen time frame and vice versa. Follow that path and be aggressive. its is time to feel great, feel happy, enjoy the ride.

Some thoughts and Facts

1. Price is not a Cause its an Effect

2. The thing that takes Chaos from Chaos, which is seamingly un-organised, to cosmos, ie organised is a thing called "Fractal".

3. The Markets are a natural function not a man made function

4. Technical analysis does not work because past does not repeat itself. Every moment in the markets is unique.

5. Every-time you make a decision you make a Fractal/AIMS Level. 

Belief System

The market gives you whatever you believe it can give you.

If you think getting 10pips out of market is difficult. Then there you go you said it. Its going to be difficult. Your mind will make sure your reality (that you create for yourself) conforms to your belief system.

If you think 10pips is not enough, then it will never be enough.

but

If you think and believe (if you intend) you can get what ever amount of pips out of the market, you will get it. You will make unlimited pips.

So set an intention - I want 1% 2% etc growth per day  and I want to be rich. There you go you said it, your mind, your subconscious and the universe will make sure your belief and your reality is manifested exactly as you imagined it, exactly as you visualised it. Isn't it amazing?

So its all about what we believe in.

Like they say, "if you think you can, if you think you cannot, you are Right". 

Levels of Traders - Its in the Mind

Trading Chaos

Hello! Ok I'm just gonna write some random thoughts here. So please dont judge me.

Basically I try to emulate Bill Williams Profitunity Trading System. This I believe is Trading Chaos. Chaos is not "chaos" its highly organised. Chaos is a higher form of organisation. Its not just random movements. It follows a proper structure.
(I can brag about all this because none of it is mine)
I believe the market has a structure - That structure is Elliott Wave
I believe that every structure always has a structure as well. That structure is Fractal/AIMS.
I believe every trend starts with an AIMS level and Finish at an AIMS level.

anyway, a little about the system.
We use only 3 Indicators.
1. AIMS AO (Awesome Oscillator). I have modified the four colour MACD into an Awesome Oscillator. MACD is based on EMA's where as AO is based on SMA's.

2. AIMS Levels (Fractals) Bill Williams Fractal indicator shows arrows where as AIMS displays the space between upper and lower fractals i.e. AIMS Levels.

3. Alligator - Based on Fractal Geometry Bill Williams arrived at this indicator after billions of iteration using a Super Computer.

Answer to Jim's Question.
Jim, the three lines are Bill Williams Alligator. Its based on 5,8 and 13 Smooth moving averages shifted into future/forward 3,5,8 bars respectively. The idea is to trade only when price creates narrow/shallow aims level and alligator is sleeping. Bill Williams calls this sleeping alligator with its mouth shut. He calls Green=lip Red=teeth blue =jaw. when the lines are inter twined AO close to ZL is what he calls the saddle point/ Zero Balance point, as if u have a rock at the top/peak of a mountain. slight leverage to either side will cause massive momentum. He calls blue line as that balance line at the top of the mountain. Which ever side price goes it falls down. blue is the top of the mountain. Everything is Energy and energy follows the path of least resistance. path of lease resistance is away from alligator. Price going away from alligator means price going away from balance line , it means price rolling down a mountain, following the path of least resistance. when AO peaks that means the rock hit the bottom or a hurdle and now it has to travel up the mountain, which is obviously going to require more energy consumption as compared to going down, and when it builds that kinetic energy it may drop again following the path of least resistance.

For further information you can see the following
There is a good thread on Forex Factor about Trading Chaos Click Here




I found this explaination of Bill Williams Trading Philosophy  very easy to understand and brief.Its by Alpari.
Here is the Link





If you'd like to read the books I can send them to you. I have electronic copy of First book. But really Its money woth spending. Buy all three and read one by one. Let it take you 3 months to finish all three.

A Weird h1 Trade but Loved it - added an m1 (w5) trade later.

I knew H4 was range bound and price goes up and down when it does that. so my target was close to lower aims levels on H4 where I could also see a support zone to the left.

Later while speaking to a group it all unfolded. We did an m1 trade while my h1 hit its tp.


Thank you God for this beautiful trade. Thank you for the beautiful 2.5hr conversation with my friends. I loved it.