Trading Brooks H2 AND L2

JOURNALS ARE SUPPOSED to be records of trades so that a trader will be able to learn and 'test' his method in live or demo trading.

However since Brooks has already done the hard work and formulated a trading method i would like to introduce this method to novice traders.

Why? because i found his method to be simple.....and others may also find the same.

there may be better methods......and you think something is better please come forward and post about it.

these are live trades and though i will try to post all trades: i may not be able to post all of them since i will be concentrating on trading.

this is not to show the world what a great trader i am but to introduce Brooks to all those who may not have heard of him.

I will also try to explain this particular method-bar counting-in a little greater detail to help others:i know the areas i struggled with and i plan to highlight those so that other traders do not get into the same troubles as i did.It did prove costly for me and i hope others will benefit from my experience

 

What is bar counting? Hear it from the great man himself

 

Brooks does not mention it here but he did in his book: there must be a trend line break between H1 and H2.
if there is no trend line break then it is likely that both are in the same leg

 

Brooks says in a trading range you can sell L3 but why not sell L2? how do you know which one to sell....L1 OR L2 OR L3?

I would not sell L1 unless the trend is extremely strong.

I would sell L2 usually as long as there is a trend line break.

in the chart below there was no trend line break before L2 triggered so both L1 L2 were in the same leg......

Brooks also says [else where] you should only trade H2 OR L2, buy or sell, if there is trend line break.

if the trend line break is not major then only expect a scalp.

 

so do not take a trade h1,h2,h3, l1 l2 l3 etc........unless there has been significant counter trend strength earlier.

So what is so special about this bar [counting]?

It is a set up.It allows a tight stop placement.

it does not forecast or predict market direction.

You need both context and signal

 

with a tight stop you may make money even with a 50% probability.....because you may go for 2RR...imo

 

three trades today all....stopped out.....

 

increased target

 

[big] mistake shorting. the market traded above the ma what Brooks calls a gap[see yellow box in chart] so should not have gone short

 

saw this chart just now so reduced position size because stop larger.....but short L2 sell