what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. if you enter on a second signal and BO is weak then there will be a BO test of the first signal so a first signal stop should be used to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull a failed break out from a channel line sometimes becomes a breakout PB so it is very important to wait for the signal that follows the failed breakout of channel line. and go with that signal markets break out ,pb , which is a test of the BO, and if the BO holds, then again break outs. or the break out test may fail and the pb may continue and become a BO in the opposite side. sometimes it BO pb then tests the previous high .....and then BO. this test of previous high or low is definite and you can get scalp. the market is doing this all the time and this is the only relevant PA. start trading with one lot only......scale up after min 1000 usd profit. make trades in one direction only ie either bull or bear. change direction only after evidence of reversal. trade reversal to reversal WARNING BROADENING TRIANGLES.....most dangerous market trick/pattern. can drain your account faster than a woman if you do not recognise them markets hammer out a bottom doji bars make bad signal bars.... but when they are in trend set ups in a strong trend they are good. big bars are trading ranges and so should not be used as signal bars do not look for trades...wait for them to fall into the lap big bars denote a wide channel and small compact bars is a tight channel. one that has big bull bars and sloping upwards is bull channel and vice versa. broad channels become tight channels as the pattern develops and tight channels become broad channels
one of the trickiest pattern i have come across is the break out pull back and then after a second breakout-a second signal-goes back past the break out pull back in what is the break test. and then if the test is successful will continue past all the extremes that were printed. i have lost a lot of money trading this until one day i sad WTF! and analyzed what was happening as a whole. eventually understood it.... markets can get quite complex sometimes mainly because a simple pattern in some higher time frame is forming and which comes across as complex in 5 min
another thing that confused me a lot was when a 'reversal 'bar formed, in what a strong trend. this reversal bar would then, in the language of Brooks, fail and become a pull back in a strong trend. Or you could also say that it was, to start with, a pull back. now eventually, again in the language of Brooks, a pullback would fail and become a reversal bar! if the pull back would do it's job then the trend would continue and would not reverse.
another place i lose money is in a tight channel trying to sell high buy low. if it is tight then you have no time before it reverses. i do not have the patience to trade the overall direction-meaning if it is a bull channel buy and HOLD for an hour or two while it crawls up and you may get 2-4 points if it is not in the US session. another reason i do have decided to only trade the US sessions. if i get the urge to practice my technique and judgement since i have no fixed rules only focus on price action, i trade the practice or sim account. i learn a lot in sim because you focus on market and price action and not on account survival. it is important to practice to learn and perfect and i used to trade real money and lose it.big stupidity but one that led to learning. bit expensive learning but beggars cant be choosers. the market sucks you in a little by little until it swallows you whole. but i escaped and became a survivor instead of a statistic
what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. if you enter on a second signal and BO is weak then there will be a BO test of the first signal so a first signal stop should be used to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull a failed break out from a channel line sometimes becomes a breakout PB so it is very important to wait for the signal that follows the failed breakout of channel line. and go with that signal markets break out ,pb , which is a test of the BO, and if the BO holds, then again break outs. or the break out test may fail and the pb may continue and become a BO in the opposite side. sometimes it BO pb then tests the previous high .....and then BO. this test of previous high or low is definite and you can get scalp. the market is doing this all the time and this is the only relevant PA. start trading with one lot only......scale up after min 1000 usd profit. make trades in one direction only ie either bull or bear. change direction only after evidence of reversal. trade reversal to reversal WARNING BROADENING TRIANGLES.....most dangerous market trick/pattern. can drain your account faster than a woman if you do not recognise them markets hammer out a bottom doji bars make bad signal bars.... but when they are in trend set ups in a strong trend they are good. big bars are trading ranges and so should not be used as signal bars do not look for trades...wait for them to fall into the lap big bars denote a wide channel and small compact bars is a tight channel. one that has big bull bars and sloping upwards is bull channel and vice versa. broad channels become tight channels as the pattern develops and tight channels become broad channels what exactly is a second entry? if there is a break of a bull trendline and then a buy signal is triggered that is a second entry long/buy. if there is a break of a bear trend line and then a sell signal is triggered then that is the second signal sell. a variation of this may be when there is one or two bar correction and then a buy/sell signal is triggered then this may also be looked upon as a second signal -a minor one,maybe?
what exactly is a second entry? if there is a break of a bull trendline and then a buy signal is triggered that is a second entry long/buy. if there is a break of a bear trend line and then a sell signal is triggered then that is the second signal sell. a variation of this may be when there is one or two bar correction and then a buy/sell signal is triggered then this may also be looked upon as a second signal -a minor one,maybe? if there is break of a bull trend line and then a sell signal-a first sell signal-then this is a reversal. so if there is a move that breaks a bear trendline and then the sell signal comes this means that the move that broke the bear trend line was a CORRECTIVE move if there is a move that breaks a bear trend line and then a buy signal is triggered, then that move which broke the bear trend is a REVERSAL move. NOW IF there is move that breaks a bear trend line and then a FIRST sell signal is triggered ,and this triggering of a sell signal breaks a bull trendline and triggers a buy signal, which then breaks a bear trend line and a sell signal is triggered then this SECOND sell signal is Brook's L2 sell. if there is move that breaks a bull trendline and then triggers a first buy signal but after triggering this first signal it breaks another bull trend line and then a SECOND buy is triggered then this second buy after two trend line breaks is what Brooks calls a H2 buy.
what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. if you enter on a second signal and BO is weak then there will be a BO test of the first signal so a first signal stop should be used to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull a failed break out from a channel line sometimes becomes a breakout PB so it is very important to wait for the signal that follows the failed breakout of channel line. and go with that signal markets break out ,pb , which is a test of the BO, and if the BO holds, then again break outs. or the break out test may fail and the pb may continue and become a BO in the opposite side. sometimes it BO pb then tests the previous high .....and then BO. this test of previous high or low is definite and you can get scalp. the market is doing this all the time and this is the only relevant PA. start trading with one lot only......scale up after min 1000 usd profit. make trades in one direction only ie either bull or bear. change direction only after evidence of reversal. trade reversal to reversal WARNING BROADENING TRIANGLES.....most dangerous market trick/pattern. can drain your account faster than a woman if you do not recognise them markets hammer out a bottom doji bars make bad signal bars.... but when they are in trend set ups in a strong trend they are good. big bars are trading ranges and so should not be used as signal bars do not look for trades...wait for them to fall into the lap big bars denote a wide channel and small compact bars is a tight channel. one that has big bull bars and sloping upwards is bull channel and vice versa. broad channels become tight channels as the pattern develops and tight channels become broad channels what exactly is a second entry? if there is a break of a bull trendline and then a buy signal is triggered that is a second entry long/buy. if there is a break of a bear trend line and then a sell signal is triggered then that is the second signal sell. a variation of this may be when there is one or two bar correction and then a buy/sell signal is triggered then this may also be looked upon as a second signal -a minor one,maybe?. corrective moves : if there is trend line break and then a trade signal is triggered then the move which caused the trend line break was corrective move. if there is a trend line break and then a trend signal is triggered ,which is an attempt to resume the trend, but it fails and another trend line break is caused, then the corrective move continues. then if a trend signal is triggered, another attempt to resume the trend, this is the H2/L2 , which ends a two leg corrective move. if this trend signal fails to resume the trend, then, if there is third trend line break , and then a trade signal is triggered, this is the H3/L3. what is called a wedge by most.
WHAT DO MARKETS DO? THEY REPEAT the same thing. In all the chaos, the madness, there is a repetition, a cycle. the anatomy of a trend. what is the development of the trend ? This is literally the million or billion usd question. Trend die and reincarnate. Trend are born with a spike which then becomes a tight channel which then slowly become a broad channel. it is after this, that things get murky and it is here that most of the money made in earleir phases ,is lost. if you do not recognise this cycle then you will be out of synch with the market reality.
Laughing at others, at their ignorance or at their genius, which is not understandable to most, is not a very admirable thing. My only goal in my trading life of 30 years was to laugh....all the way to the bank
From bitter experience i have realsied that trading when there is no movement, or market is moving in small bars, is the stupidest thing and is the most important or biggest reason for my losses. this is because, although the technicals are still valid, trading these when there is no room, for the profit to be generated, will lead to loss. keep laughing.... all the way to bank