did not sit in front of computer...placed trades and did something else. so could not post closure of trades live. i am posting a statement of yesterday.......the statement makes it clear that i was not reading the trend properly.
i have included a 14 rsi to help with trend direction. h2 is basically a second attempt to reverse the pull back .....
Brooks says you need context and a signal. How can we determine context: i am using 4 moving averages to determine if there is trend or a range and i am using a rsi to help determine or judge momentum. Brooks uses only 0ne ema but i have found that is need more.....so it is a personal thing.....i also use a 200 period sma... this video uses 3 moving averages and gives some good insights into the use of moving averages. i first learnt about emas in 1994 and so i was quite surprised to find something new about them in this video:
this is good video to see.....if you are looking for honesty.....and realism.....and not a sales pitch he says clearly where to sell above bars/buy below bars or sell below bars/buy above bars
“The dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you’re willing to pay the price.” —Vince Lombardi, Pro Football Hall of Fame
i have found this video useful for trading......entering a bull or bear breakout before the breakout pullback and holding till the 'market cycle' as defined by Brooks in the below video yields excellent win ratio and low risk with high reward........at least in the few trades i have made:i have therefore decided to make few more trades next week. back testing looks promising but i prefer live testing. i will wait for the market cycle to be over before taking a breakout in the other direction
i made 2 trades and they are as in the chart and history as shown.....the target for the second trade shown in pink line was placed on entry[shown with the yellow line] along with stop not shown on chart. the short entry for the second trade is shown in blue while the exit is shown in red. the reason for target placement was because Brooks mentioned that the market will return to the previous breakout zone......because the market was in a bigger range and deep pull backs are to be normally expected
Would you mind referencing where Brooks talks about the trend line break being necessary in a 2nd entry as I would like to see the context he is saying this in. Thanks.