Yes, you are right, it is a Wedge bottom. And good place for PT on a short. Depending on how one draws the trend line, it’s break...it’s test..then the reversal it could be called a LLMTR OR A HLMTR. That is not really important. But what is important is the fact that a reversal is taking place at that wedge bottom and measured move down. As Al is fond of saying...”it doesn’t matter what you call it” ROFLMAO and that just gets a perfectionist trader, that has to live by exact rules all up in airs and in a frenzy!
With fairly strong move down (see both MM’s on my prev post) on the 5 min chart I would certainly be looking at a possible move back down from that wedge bottom reversal back up considering that a move back down may very well take place at around the 50% area of that larger and/or smaller MM DOWN ON MY PREVIOUS CHART. Perhaps on both. At least enough for a scalp down. I gotta go. Time for a walk.
Back from walk. Going to town for some errands. I will post final chart for day with some explanations later.
That is hilarious! But I get you man. Heads up....if you can’t sleep on a particular night put on an Al’s video. You likely soon be snoring while he keeps talking! He is a great guy and knows his stuff “par excellence” better than anyone I know of but sometimes his voice...well it is what it is....the repetition doesn’t bother me as that is a proven teaching technique. I actually like it. It is the monotone sound that gets to me and I just want to go to sleep. But I have discovered techniques to keep me awake and engaged with the video. May I make some suggestions? Listen to a video. As you are listening take a screen shot of the video slide that covers the most salient points under discussion by Al at that moment in the video. Usually as Al opens a slide to begin a topic he will show several slides of the same price action and he will be adding written comments as he moves along. Finally the last slide will have ALL of his comments written and graphics drawn on them. That is the slide you want to capture. Then he will go to another completely different slide. And he will do the same thing again building up to that last slide. Take a snap shot of that slide. Go through that particular video lesson doing the above until you finish the video. Print the snapshots out. Put the printed snapshots in a binder. Rest your brain LOL! Maybe even a day or two if need be. When refreshed, start the same video again but this time take extensive notes on each slide as he is talking. You are relating your understanding of what he is saying to the slide he is discussing. This exercise help cement the concepts into your brain. Go through the whole video doing this. Once you finish take time to review each slide with your notes. Think deeply about each slide. That review will drive it deeper into your consciousness. As a very last step take a look again at each slide one by one. As you look at a slide, close your eyes, see it in your mind, take a picture...a mental snapshot. It is now yours! With Brooks you have to “engage” the videos. You have to “do” something EACH time you go through a video. You cannot just sit there and listen. You will miss the nuances and even many of the main points. IT IS WORK! You have to roll up your sleeves and wade in. Good luck!
Here is the last chart (5 min MES 12-7-2020): Remember I mentioned watching a 50% PB from the wedge bottom as a logical place for shorting again. So there were two opportunities both for several points with the second one being the biggest one in terms of points. I don’t watch Fibs but a 50% PB has a mathematical logic as well as a psychological one in the markets. Watch them closely often a reversal or two will happen around that area. After the reversal down from the 50% line another major trend reversal took place this time a HLMTR i.e. a higher low major trend reversal. It is that second green arrow. And is actually the second leg up from the wedge bottom made at 12:45 or 1:00 whichever you wish to label the wedge bottom. It doesn’t matter. Both are roughly 3 pushes down, then we get the reversal. After that tight BO Channel down from the bottom of the sideways range (grey box up top)the tight channel morphs into a larger sideways range (which I didn’t box in but it is there) we get the broad sideways range with multiple trading opportunities up till the close of the RTH’s. It was during the broad range we had the previous alluded to 50% pb areas with the two green rallies and two red declines and even more afterwards. Up and down. Race to the top. Race to the bottom. The point is to highlight the market cycle. To the far left between 4:30 a.m. and 7:45 a.m. we see sideways motion (not depicted on the chart but you can check it out. Then we get a BO that morphs into a channel. That channel morphs into the grey box range at the top. Then we get a BO south of the range followed by a tight channel after an implied PB in the BO. Finally, that tight channel morphs into the broad range just before the wedge bottom reversal. So range...BO..channel...range...BO...channel...broad range. There you have it the market cycle. For each phase of the cycle there are a number of tactical setups...such as wedge bottom....MTR’s...50% PB....implied PB...top and bottom of range entries....etc. All this on this 5 min chart. Now if you really want to send your brain a spinning the market cycle happens on other time frames....15 min...30 min...1 hour...daily...weekly...monthly. Pick your TF and trade it!. I like a 5 minute TF because multiple trading opportunities in that TF and I can be flat by close of the session. You might want to take a mental snapshot of this chart...clik...it is now yours locked in your brain. Seared, hopefully. ROFL
bull candle, it'll go up, then bearish candle, go down, another bullish candle engulf the bearish candle, go up, and bearish candle engluf bull candle, we are going down. I can go on all day until we finally get a trend.
i think brooks says it all when he talks about a trader's equation if you can read the market then you have an edge. but an edge means you must not look for certain profits......i wrongly believed that a lot of study will lead to certain profits. wasted a lot of time with that you can only hope at best for a edge.....so you MUST keep losses to as little as possible. certainty does not exist in trading because no one will take the opposite side of the trade in that case
I started seeing it only after the trade was placed, but now I can see it before the trade and it’s making me hesitant and so once again I need to find a statistical edge. I need a hint in the right direction because otherwise it’s a coin flip and the commissions will eat me alive over time.
while it is easy to see opporrtunities on a chart.....managing these need some skill.......taking H1/2,L1/2, is one way .....because it shows where the stop should be