I haven't placed any more trades since the two trades on that early H2. Here are my notes so far, bar counting, measured move as Brooks teaches in the course.
Maybe a double top here to get the move to touch the moving average? Also I noticed that the second H2 was a 50% pullback which Brooks teaches about.
Once you decide on your setups, H2's, DT's, DB's, wedge breaks, MTR's etc, it would be a good idea to track your MFE and MAE on all signals taken or not to adjust targets. Volatility changes and range with it. Targets are dynamic.
You sent me to Google to find out what "MFE" and "MAE" were. And I recognized the first result as an ET member! I guess an ET "sponsor"! So measure points moved "for" and points moved "against"? I haven't come across this in Brooks Trading Course yet. Does he talk about these?
I don't recall his mentioning them, I don't want to get you off track as the study of Brooks will be invaluable should you put in the time and effort but you may ultimately draw other concepts into your trading. I use David Halsey's concepts of measured moves but with adaptations. I also incorporate ideas of Raschke, Sperandeo, and others. The trolls on here like to criticize the "methods" of Brooks. As I've noted a number of times, which is something the trolls have difficulty in comprehending, he does not teach a "method", he teaches how to recognize and understand price behavior so a trader can develop his or her own methodology. If someone is simply looking for a "method" or "setups", there are no lack of car salesmen to provide such but they won't do much if any good without the understanding of the context in which they occur. Becoming a profitable trader takes a lot of time and effort, more than most of us realized going in.
Had a work emergency on Wednesday morning and kept me busy until an hour or so ago. Here is my current trade and first one since the last one posted. This is H2 long trade. Still SIM trading. One simulated contract only.
Stop was traded. 4533 is "actual risk" stop per Brooks. 4529.25 "initial risk" per Brooks. Swing traders would use initial risk stop. Scalpers would use actual risk. I am experimenting.
@NumberZ I am neither an advocate nor a critic of Brooks. And I do not know what a "H2" is. But from merely looking at your chart I offer a suggestion... It is clear the trade moved in your direction. Why then would you place the stop below the "H2" entry?? Since the trade materialized, the stop at that point should be (at least) 1 tick above BE (break even) so it covers commissions (and basically becomes a wash.) There is no reason that trade should be a net loser of any amount. Looking further at the chart, around 4539 and 4544 was were sort of resistance levels that could have also been used as stop levels, or target levels depending on exactly what an "H2" is. It's all about making money... and that requires knowing where a particular setup (H2 in this case) is likely to run into trouble. And more importantly, recognizing when a particular trade is flailing, regardless of what is "supposed" to occur. Of course, the style of trade (intraday, swing, scalp, investment, etc) in addition to the setup itself, affects how the trade is maintained. Good trading to you.