no i do not mind .....but cannot off hand find that reference. you do seem to be familiar with Brooks.
since H2 L2 are setups to enter a trend, when the pull back is finished.....trading these near or at a moving average, is a higher probability trade. trading reversals [mtr] when the market is away from the ma, increases the probability of the trade.....and if the reversal trade is during a time when market is in trading range [when the ma is flat or weakly up] then that also increases the probability. fading breakouts from a trading range formed around the moving average[enter on a setup] is also a high probability trade since it means that the moving average will be flat.This is why Brooks says most breakouts fail:since market is in a range most of the time, breakouts during that time may be faded but Brooks also says you need a set up.The context is a trading range market but the entry is on a set up. So first determine the context and then wait for a set up.....trading only on context equals emotional trading.do not enter randomly.
on a trading range day fading breakouts from trading ranges formed near or around the ma are high probability trades.
My first impression on reading Brooks is to wait for a H3 or L3. it seems there are fewer of those and thus they might work better. how come you want to jump in early on H2 & L2. or do these different methods require different context. I never understood this problem. it holds me back terrible. what is going on with these high & low counts. are they different trader or the same thing just when the entry is made. what confuses me is that if I enter on 2 count then the market makes a 3 count the book seems to stop out on lets say a new low instead of get ready to enter on the next 3 count. does he enter on say H2 signal then stop out then enter on H3 signal. why not wait for H3 then. and skip the loss on the H2. I really dont understand what is going on here. there is too much confusion going on in my brain.
Attached are pages 118 through 136 of Reading Price Charts Bar-by-Bar by Al Brooks ©2009 The section discusses H/L 1,2,3, and 4 It is a subset of Chapter 4 titled Pullbacks. The pdf is 13MB, too big for ET upload. https://www93.zippyshare.com/v/a1vDQnyY/file.html The file will disappear after 30 days of inactivity.
Hello Padutrader, I have some experience with this. I was once using 3-4 EMA to determine trend first. Then I would take trade. So basically once the EMAs line up, apply Al Brooks entry methods.
Chewy, When reading that book, find 1 way of enter the market and stick with it. Don't confuse yourself. The problem is with teaching is people offer too many options. Enter the trade, Set Stop loss, and then manage the trade. Focus on the process, then entire trade: entry and exit. Then test it. Then trade it.
the idea of this is to enter trend on a pull back.....so there has to be a [strong] trend before you enter....some trends can be weak entering here may mean only a scalp......in a strong trend a H2 at ma is a very high probability....... brooks just rambles on and on ......and that is why i have started the other thread https://www.elitetrader.com/et/thre...rooks-price-action.335198/page-3#post-4911578