When you get the signal, you first want to pull up the chart for that pair and time frame of the signal in the Web Analyzer. First, I check to see if the candles are near the outer edge of the Bollinger bands and then I check the RSI to see if it is above the purple area on a sell signal and below it on a buy signal and on the MACD, I am looking for the lines to be near the center 0 line and moving in the direction of the signal that was given ( I guess they replaced the DPO with the RSI now). If so, there is a better chance of successful trade. Pull up the pair on your MT4 chart. You will need to have the Elite 60 X indicator and the Stochastics (set to 14,3,3) on your chart somewhere. I have templates set up, so I can move from indicator to indicator and back to the chart that I trade from.
On the Elite 60 X indicator, you are looking to find the candle in the outer red Bollinger bands or beyond in at least one of the time frames between the M5 and H1 timeframes and the closer it is to your signal timeframe, the better it is. Then I go to my chart for this pair that has my stochastics on it, and in my case, this is also the chart that I trade on. What I am looking for here is for the pair to be overbought or oversold (above the 80 line or below the 20 line) on multiple time frames in a row. If the signal is a 5 minute, I will check there first and that one should be overbought or oversold depending on whether your signal is a sell or a buy. Then I will go to the M15 chart, the M30 chart, the H1 chart, and so on. The more time periods that are overbought or oversold and matching the time frame of the signal, the better the chance for a successful trade and, also, the possibility of a longer-term trade. On the charts below, if I had a 15- minute signal, the stochastics shows it overbought on the M15 and M30 charts, but the M5 and M1 charts do not show that. This is likely to be a good trade and longer-term trade, so I would wait for my M5 and M1
charts to also be in the overbought area before taking the trade. If I took the trade right away, you can see on the M1 chart stochastics that the trade would most likely turn and move upwards and you would be in a negative position for a while until it started moving downwards again and could happen multiple times until both the M5 and M1 charts show the stochastics to be overbought and then the pair should start moving down in all 4 of the timeframes and give you a profitable trade. Waiting to take the trade gives me a much better entry point and a higher probability of a successful trade and there is no hurry to jump on the trade because the signal is longer term and the pair is also overbought on a higher time frame. The smaller time frames have to move in the right direction before the upper time frames will, so you have plenty of time to wait for both of the smaller time frames to also be in an overbought position. You could also be scalping in the opposite direction every time the trade is oversold on the M1 chart for a few extra pips, if you choose to do that.
Then I go down to my M1 chart and this is the chart that I place my trade from. On this chart, the stochastics probably will not match what I have on the signal timeframe. I check to see where the stochastic is and what direction it is moving. It is possible that the move may have already
happened and the stochastic is way at the opposite end and moving in the wrong direction, as in the case below. If it is a 5-minute signal and the stochastics in none of the other time frames match, I will pass on taking this trade if it looks like the trade has already made the move. If the move has not been made yet and I take the trade, then I watch this trade very carefully and may get out of it after only a few pips if it should happen to change direction because this is only a short-term signal and I want to keep whatever profits I did make and not have this reverse on me and go negative. If I do have matching stochastics in multiple timeframes as I did on the M15 and the M30 timeframes above, I can either get into the trade then, or I can wait until the stochastics on the M1 chart matches what I have on the timeframe of the signal and waiting will give me a more optimal entry point and a better chance of a successful trade. When the lines on the M1 stochastic cross above the 80 or below the 20 and are moving in the direction of the signal, you have an excellent entry point. In the example that I just provided, if you were going to wait, you would want to make sure both the M1 and M5 stochastic were in an overbought position before taking the trade since the signal was on the M15 chart.
Once I have decided that this is a good trade to take, I wait for at least 2 closed candles on the M1 chart in the direction of the signal before I take the trade. I will sometimes wait even a little longer if it is a M15 signal so that I have at least 1 closed candle on the M5 chart in the right direction before getting into the trade as in the Quick-Fire strategy (if you are getting into a trade on the M1 chart where the stochastics are not matching that of the signal time frame, then this will not apply because the trade is likely to go negative for a bit before turning around and going the other direction). Once I am in the trade, I set the exit manager for 5 pips (I have mine preset in my template). I do not do any partial closes on these short term 5 pip trades. I found that when I did, I was getting stopped out at 2 pips on most of the trades, so I started closing everything out at 5 pips so that I wasn t losing those 3 pips on half of my lot size. On the trades where you have the stochastics matching in several timeframes, you may want to do a partial closure and either use a trailing stop or the fractals on the exit manager and let part of your trade run, but if you don t have matching stochastics in several time periods, it is best to get out of the trade completely at 5 pips to secure your profit.
I do not set any stop losses, but I am on my computer monitoring my trades most of the day. If I leave and have any open trades, I will put in stop losses. The few losses the I do incur are usually around 4 or 5 times the profit that I make on a single trade, but the amount of winning trades that I have easily takes care of that. If you are uncomfortable doing that, then put in a 10 pip stop loss. You will want at least 10 pips to give your trade a little room to move without getting stopped out. I am not setting any target points because I use the exit manager, but if you don t use it, you will want to set target points or watch your trades very carefully, so you know when to get out. Your stochastics on the time frame of the signal are a good thing to watch, as well as your support and resistance lines to know when you should be out of the trade. Before I go to bed at night or when I am done trading for the day, I close out any positive trades that I still have open and I put stop losses on anything that has moved into the negative and these are usually closed out by the exit manager by morning.
I do not like to trade on Sunday evenings when the spreads are large or on Friday afternoons when the market will be closing in a few hours. I try to be out of all my trades before the close of trading on Friday. I also do not usually trade big news events, but I will trade the signals once the big move from the news has been made. I do not trade any of the XAU/USD signals that the Web Analyzer gives. The spread is just too big and most of them have ended in a much bigger loss then any of my other losses. I am not an experienced trader by any means; I have only been with IML for a few months and have not had much luck with anything until I started using the Web Analyzer and combined it with a couple of other strategies that many others use. I have been trialing this strategy since November 1 st and tweaking it along the way to reduce the number of losses that I get each day. By the end of last week, I was down to only one loss a day and they were all errors on my part that caused them, such as closing out a negative trade in error or taking a trade in the wrong direction and having to close it right away. In the 7 trading days that I have used the Web Analyzer, I have taken a total of 173 trades and only had 11 losses and several of them were rather large losses on gold trades. I still managed to gain a total of 793.4 pips during this time and a total profit of $421.04 by taking.05 lot sizes on most of my trades. I am not too far off from the number of pips that the swipe traders usually make each week and there are several of them and only one of me, which leads me to believe that I am doing something right here. Hopefully, this success will continue and not prove to just be a short-term string of luck. Disclaimer: Past profits do not guarantee future results. Sheila Rasmussen