You can only know in hind site, but you try to position yourself high or low in the channel for the inevitable end. But 1 clue is a really strong looking breakout late in the trend, there are others.
market definitely moves in a direction up and down. now technical analysis says that the trend-direction- will continue........but all trends turn and change....so the real question is WHEN IS THE TREND GOING TO CHANGE? if you do not know that, then all you have to rely upon is 'risk management'........ after 20 years of learning all this ,some of it can only be referred to as bull shit i found Al Brooks....... i knew this guy was special because for twenty years i had read many authors-elliot gann fib Demark.. and many many others.. and traded may of them. i traded eliiot for 5 years ....add Linda Rachke, Toni Hansen..... .i may remember a lot more as i write this..... it took me 13 years of trading of study of Brooks...YES 13 YEARS IN STUDY OF WHAT ONE MAN SAID ABOUT MARKETS....to understand him. most people would have deserted him a long time ago ........but i knew that what i had in my hand was a diamond but covered in shit...i had to clean it up. what Brooks said was that the market moves in two legs or waves.......this is not something new or earth shattering....the ABC move is well know by alll. but what Brooks said was in a way earth shattering: he said that all moves however big or tiny had a ABC structure. you can see this every where it is not difficult to understand. but it took me around 13 years to trade it and to make money out of it. this is not a magic wand you have to learn to read the market. it is also no secret Brooks has documented it in great detail but you still have to read the market........and see it in real time. took me a long time but now i am there. if you can see the two legs...you can correctly trade even the tiniest of moves i know the reaction this post will get from some over here. it is ok i have struggled a long time to understand what Brooks has to say
You can predict a reversal a good % of the time but how about the absolute top or bottom (Not on hindsight)? I find that it is impossible to predict something like that because of how dynamic the market is with too many factors involved. What you think is rising too high, sometimes goes even way higher and vice versa. Sometimes a stock maybe ranging for years and then all of a sudden explode up with crazy volatility and volume, if you sell off early based on the previous years worth of data you will lose out the big gains.
What kind of dip shit teacher obfuscates so much that his students need 13 years to figure out what the hell they are talking about? You do realized that brain surgeons have a faster educational turnaround time??
haha you are a bit confused....... why do you need the absolute top or bottom?......you just need a bottom or top to make money. and you will find plenty on any chart. if you understand what Brooks says you can predict a change of trend every time. if you know to find the two legs you can do this. but markets are not perfect and often the two legs are not equal.......so it actually takes a lot of practice to do this...it took me 13 years ....i am not saying i am a perfect trader but i do know what i am looking for
hahaha well do not be his student if any teacher says when a=b and f=k then you buy.....you think that makes a good teacher. this is markets you are dealing with i ahve always said and BROOKS HIMSELF SAYs in his preface that it is a 'difficult read'.... the fact is that any method may be simple when explained but to actually make money out of it out of any system is extremely difficult. but i must add that when you have been screwed by the market for 13 years you do learn a few things......if you actually survive that long which i think most do not
Brooks says he goes weeks without a losing trade. That's mathematically impossible. Unless you don't take a trade in weeks then it's very possible.
If you never sell you don't lose a trade by definition So maybe he sells all his winners (100%), but keep all his losers till it somehow reverses if ever.
yes any expert who has learned to trade will tell you yes surgeons do.... but nothing gives you the freedom that trading gives.....you are your own man no one to booss you no one to regulate yoou so it is well worth the effort but it is a lot of effort