i see a lot of your posts where the quote shows an arrow up: see the file uploaded how do i get the same?
I think Al Brooks prints his books in Chinese....i could not understand it either. You said you would love to receive a few tips so i am giving you one:it is quite possible that will stop loving to receive tips after you read this.... books are theoretical and you will lose yourself:i read my first book in 1994 and about 10 a year since;that is a lot of money spent. I then discovered the internet and it was like 'Alice in Wonderland: a land where you find tons of FREE information. It will really set a firm foundation and help you:it really helped me! i am now an expert in technical analysis. After 24 years now i am ready to make money. BECAUSE NOW I KNOW WHAT NOT TO DO No I am not joking; if you want to learn, you have to learn all the rubbish first: if you find technical analysis gold, in first book, how will you know, it is gold: you have to learn, what is the shit so then you may differentiate. It is not easy to find diamonds in rubbish: rubbish stinks. If you want to learn, read all the books you can find, read all the technical analysis info on the net, and, like me, you will become an expert. BUT IF YOU WANT TO MAKE MONEY THEN DO THIS: put some moving averages on a chart: for eg 5, 20, 50, 100, 200; you can also use 7.5, 21.8 44.3, 55.3 etc the funny thing is, it does not matter. Because what you need, is you want something, that represents ' really short term' 'short term' 'medium term', in between 'medium term and long term', and 'long term'. What is really short term? You decide: you may decide it is 5, or 10 or, 20 40, or 51.65, or 80.78, or 200 or 200.98, it does not matter. because once you decide what is really short term, then all the rest follows. Now the basic idea in trading is to buy when the short term trend is down but the longer term trend is up. how specifically do you do this? 1.When the 5 ma crosses over the 20 ma from above, buy if the 50 ma,100 ma, 200 ma are all sloping up. Further there should be a healthy difference between all the longer term averages. 2. if the market falls through 5 ma 20 ma, which are sloping slight up or flat ,in what looks like a straight line, with all down bars and no up bars [1-2 dojis are acceptable], and hits an severely upward sloping 50 ma, then you can buy. 3. if the market slowly falls through the the 5 ma then 20 ma and touches the 50 ma,where the down move has a lot of up bars,DO NOT buy. Do the reverse for sells. The tough part in trading is when do you take profit: no perfect technique i know of but i will suggest a few things to look for: You may take profit when the 5 ma has gone up steeply while the 20 ma is more shallow,there is a big gap between the longer term ma and the shorter ones.......go for a reward to risk ratio of not less than 4:1 or more:because trends tend to go on and on on and this is a trend following system. Try this on demo Why do not traders use this simple system? because the market trends only 10% of the time and so you do not make money 90% of the time. May be that is why statistics show that beginner traders lose 90% of the time. They over trade. me who have used Brooks' price action for the last ten years, have lost money 90% of the time This is because that system works only for Brooks, as the name, implies or suggest This is not to say that Brooks is a bad trader; it shows I am a terrible trader. i will tell you the secret of trading which i discovered after 25 years of trading: You cannot make a lot of money trading because someone has to lose a lot of money. Do you think traders who are trading for more than 5 years are going to lose a lot of money? Do you think Goldman is going to lose a lot of money?:if you doubt me, why do you not call Goldman Sachs and ask them? They recently got fined for manipulating the fx market from 2008-2013. They will gift you a little money because they HAVE TO; it is their cost of entering and exiting their huge positions which sometimes take days or weeks. be happy with their gifts; do not be ungrateful or unrealistic. finally if you make money with this system and you make more than 500000 usd /year with it,donate 20% to a well known charity of your choice. When you see posts that claim tradergod is drunk whenever he posts, that he copies from the dustbin and pastes it in ET,.....that he is actually another avatar of Fred Foresight....that he does not trade at all, that he is not qualified to give advice.... have a beer and buy a Porche with your profits.
Thanks, I have a script on my app that my 20ma is colored on red or green exactly depending on which direction my 20ma is moving and also my candles are colored If a candle is bellow the ma is red, so what I use is RSI (I don’t look oversold or overbought - i just add a 50% line to check market intentions) and if my candles are red, my ma is red and I have beat strength I sell Also I love wedge on ma... check oliver Velez, regression/reversion on ma
Yep Oliver is a good trader to keep an eye on. watching how fast the bars form,how big they become,where the close is,above or below the ma, how much above the ma, the close IS,all gives critical information to the trader THAT NO INDICATOR CAN. IT GIVES IDEA OF INTERNAL MOMENTUM OF THE BAR WHILE IT IS BEING FORMED It also gives the pulse of the market.
Concerning number 3. You are exactly correct. It is counter intuitive. Most traders want to go long in such a senario. But what is happenning is the bulls are losing. They are pushing back (hence bull bars) but the move continues down. Conclusion: bulls are wanting a reversal or a continuation of a previous bull trend but the bears are winning despite the bulls pushing back. Concerning #1 correct again. Concerning #2 correct again. Bears are winning bulls are backing off but just waiting to end this as this is a PB. Correct in all three cases! Bingo! However, one caveat. The context must support the conclusion. So, providing the larger context does so these can be three winning tactics and a viable manner of trading. You might wann go buy that Porsche.
What I know how far away the bars are closing from ma more bull/bears up/down trade is Regarding number one, it depends how the big picture is, for example if you are in down trading channel, I would never buy a big bull candle in the bottom or depends what kind of movement you are referring As you said, you have both ma falling ... I really don’t understand how can you Justify buying something if you are against the trends
the idea is to buy the short term down move because you have the support of the larger term players. only the short term ma [ trend ] is down so a sell is only a scalp the ma in a down trend represent the short term move of the market
Appreciate your endorsement. "Concerning number 3. You are exactly correct. It is counter intuitive. Most traders want to go long in such a scenario. But what is happening is the bulls are losing. They are pushing back (hence bull bars) but the move continues down. Conclusion: bulls are wanting a reversal or a continuation of a previous bull trend but the bears are winning despite the bulls pushing back." nice explanation: i suspect most traders see the slow fall as a correction. "The context must support the conclusion. So, providing the larger context does so these can be three winning tactics and a viable manner of trading." do you not think three longer term ma in uptrends, show the context in a nutshell?