How to apply Brooks' PA?

As far as im concerned there are three phases of market action. Accumulation, Distribution, Momentum phases (trend) as we break out of these areas. The art is in reading multiple time frames to understand whats going on and which timeframe is in control.

If you are only looking at 5 mintute bars, it will be hard to see what phase you are in over all.

 

yeah mostly home grown, with some principles of PA... to me the daily bar story has richer context, with daily events unfolding - news stories, fed actions, economic numbers, earning cycles... so there are more pieces to put a puzzle together.

I am sure people who specialize in intraday will have a lot to say about context - different hours of the day, overseas market open/close etc.. I just don't have enough expertise in the intraday.

there are some more extensive writings around PA.. once you read a few of those, then all you need is some idea of market participants, and basic psychology, you should be able to reach certain conclusions... after you see the same pattern unfolding a few times, you will get it, you will have your own stuff... and that's it.

 

What would be some of those?

 

As I am thinking about sharing the information about trading, I am going to follow

example and start posting some of my trades here. To avoid cluttering the thread, I'll only post the best and worst of each day. Questions and suggestions are welcome!

Here is an important disclaimer. Information that I will post should not be considered as an invitation to follow and/or make trades. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.

 

THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.

 

This is the worst I did yesterday. Take it how to NOT make trades.



THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.

 

just search for something like price action trading journal you will get a ton of stuff. YOU might already be an expert and you don't even know it... if you shop for grocery or electronics or cars what not, and if you are a savvy shopper, you watch the trends, you gather information and try to come up with a 'story' of why price does what it has done, and what it will likely to do, so you can decide when to buy what at what price, for the purchase of certain grocery item or a car...

stocks are no different.

 

sold the low 2 or low 1 if you like...

 

WHAT MISTAKE DID YOU MAKE?
never trade counter trend until there is a trendline break AND A RETEST OF THAT TRENDLINE

 

So, should have been like this?