How to apply Brooks' PA?

all this will work on daily and longer time frames.
not everyone is able to trade those time frames because of financial or psychological constraints /demands.
and i do not believe everyone should trade those time frames if that method does not fit their psychological profile.

 

booked profit....took screen shot before closing trade....this should show how to apply bpa

 

you had that trade where you went long expecting a second leg up .....but it fell- we discussed it remember ...here you have looked to go long expecting a second leg up
with so much up momentum and not much strong counter trend price action why short?
the second swing /leg up that tested the trendline had too much, up momentum and no red bars so too early to short

 

Looks like I got whipsawed each time, trying an opposite approach. I am trying to comprehend what went wrong and how to avoid it in the future.

 

thank you for this quote.....you have learnt well

 

there were just not enough red bars to go short....to put it very crudely

i could only see green bars

 

this is a H1 buy

 

booked profit just after i took the screen shot 40 pips in 5 min.....

yep just wasted 5 min THIS IS THE WAY TO APPLY BROOKS PA

 

Brooks starts his book with a similar trade, showing advantages of PA versus everything else. Here is his example,

"· Yesterday, Costco's earnings were up 32 percent on the quarter and above analysts' expectations. It gapped up on the open, tested the gap on the first bar and then ran up over a dollar in twenty minutes. It then drifted down to test yesterday's close. It had two rallies that broke bear trendlines, and both failed. This created a Double Top (Bars 2 and 3) Bear Flag or Triple Top (Bars 1, 2, and 3) and the market then plunged three dollars, below the prior day's low.

· If you were unaware of the report, you would have shorted at the failed bear trendline breaks at Bars 2 and 3 and you would have sold more on the Breakout Pullback at Bar 4. You would have reversed to long on the Bar 5 big reversal bar, which was the second attempt to reverse the breakout below yesterday's low and a climactic reversal of the breakout of the bottom of the steep bear trend channel line.

Alternatively, you could have bought the open because of the bullish report, and then worried about why the stock was collapsing instead of soaring the way that TV analysts predicted, and you likely would have sold out your long on the second plunge down to Bar 5."

 

h1 failure or L1 short trade put on now live