Brooks is the only one i know who teaches students how to see both bull and bear sides. most coaches only say enter long and put stop here. they do not even tell their students there is ALWAYS a bear trade and a bull trade. if at any rate, there is no bear trade, then no one will sell at that rate and simply put the offer higher, where a bear trade may be seen to exist.
putting a target according to RR is one way but i find it arbitrary and i disagree with Brooks on that. but i prefer to expect targets according to market structure and watch the PA to watch for something in that price movement, that will negate the market structure and change my target
When the breakouts are small, expect reversals/PB often and conclude you are in some sort of a channel. BLSHS or swing in the direction of the channel if it has a clear direction and not broadening
Since you're practically talking to yourself, let me chime in by saying that the correct course of action is not to pay attention to the actual breakout. Instead, ask yourself how did it break out? Did it break out of a strong resistance or weak resistance? In another word, were all the enemy forces decimated and there's no one left to get in your way? This can be done by looking at the length of the range. The longer range (stronger resistance) usually leads to a strong breakout. Shorter range (weaker resistance), on the other hand, tends to fail after breaking out and will often reverse direction.
you bet i am.: Quote by Swami Vivekananda: “Talk to yourself at least once in a Day, otherw...” (goodreads.com)
yes if the breakout is 'strong' then do not fade it. even if the range, is big and BO strong, you have to wait for the pullback, most BO pull back after 2 bars while all pull back after 5 bars
brooks market cycle is critical. breakout- channel- trading range break out is leg one. after the trading range breakout can be on either side with that breakout now becoming leg one. the market cycle can 'reset'. a wick can be leg one a bad bull or bear next bar can be the channel, and the test of the extreme can be the range phase. then you have the breakout which can be either side and the cycle resumes-this can, of course be clearly seen on a smaller time frame
what i have been saying for the last 20 years here, is that knowledge about how the market moves, which is rational because traders move the markets, entering trades according to market conditions-which change but remain same for some time. not some arbitrary RR which is in the traders mind and has nothing to do with market movements.