Please give us mere mortals a clue..:eek: At what time did you see it would break? And was the target based on a 100 pip move or something else?
Follow the bottom arrow line to the left where it meets PA. That is the signal taken off the 1m chart. At what time did I see it would break? I knew about 2 hrs beforehand that the down pressure was running into a bigger up wave. When we paused for so long on the 1m chart everything was coming together in a number of time frames for the big push up and that was my reason for calling a buy for the trade of the day. It wasn't a single time frame read. Attached is the chart for top resistance on the 3rd push, 60m. I don't trade on round numbers so no it wasn't 100 pips will do nicely so exit. I am looking for a reason to enter and exit a trade and often the exit is a reverse trade.
Thanks for the explanation, I've read that before, about the h&s confirming a true breakout, change of trend, or just a head fake. I attached your chart showing X's suggestion of adjusting the channel to connect the lows after the breakout. I see symmetry and so many different options on where to connect channels, that I get analysis paralysis sometimes. What are the backtests showing exactly other than resistance becoming support? Or is that in itself the importance?
My pleasure. I see you like Al Brooks material. My entries would generally be a bit earlier than Al's so they might seem foreign to you. I only know a little of his style but liked what I saw. The main drawback with Al's context is also his strength - so much focus on the 5m chart. He has mastered that chart but it is trading through a keyhole. If Al put his analytical mind to seeing the 5m in a much bigger context then high energy moves would become more apparent in advance so you could resist the counter set up. When a strong trend is in place that is bossed by a much larger time frame than the 5m chart, the 5m will have some great counter trend set ups that fail. One of the signs of a bigger boss is these failures occurring, hence reading the 5m chart will not always give you the information needed to identify where PA is going and why.
Oh dear... I just struggled through ± 1500 pages from his three new books and now it seems it's just the beginning Much appreciated, Xspurt
You are welcome. It's a matter of styles, we all use different methods, rulers for the methods. I don't think there is one right way but mastering whichever way you choose or prefer. In the end is an art, always has been, I like to use my own brush. Yes that was the importance, studying the backtest price action will lead you to the next wave.
Thanks for the reply. I'll write more later. Just wanted to mention today's pullback on the 1-hour (3150) was a carbon copy of fridays....