the purpose of a journal is not just to report and record trades. it should be a detailed record of the trader's thought process of why he took that trade. this is quite daunting task but one that will really help the trader in organizing his thoughts and so help me make good nay great trades on a consistent basis.
i have started observing and trading channel lines overshoots and my results can be seen in yesterday's trading. the first objective of the trader should be to determine that what has happened or is happening on the chart before him........and that can fall under two and only two categories: IS THE MARKET IN A CONTINUATION MODE OR IN A REVERSAL MODE ?
How are you going to do this? Do you have a checklist of criteria that a an entry must meet before you take a trade? Are you planning on recording your thoughts and then sharing them? Keep in mind that there will be two steams of thought. The ones you actually experience and the ones you feel comfortable sharing with strangers. (the ones you think we think you should be having)
i have noticed that-even though Brooks has not mentioned this specifically, as far as i have noticed-that trend channel lines overshoots test the bottom or other side of the channel and this test is usually one of the lower low type ,if in a bull channel, or higher high in the case of a bear channel, [meaning an overshoot on the other side] or a higher low /lower high [ meaning an undershoot]
Brooks has set out a lot of criteria that you must consider before taking a trade. Most people think trading strategy must be secretive ...if not, it will not work. i do not want to discuss that at the moment. Brooks has set out or listed the thought process that a trader must go through and as you can see from the number of books he has written that in itself appears to be daunting. it can be if you cannot manage all what he given you. this journal is an effort to manage all what he gifted the trading community. it is not unique but he has listed all that a trader must look for before taking a trade
Indeed you have admiration for Brooks. I think you have written the word Brooks 1 thousand times already. all the best mister.
if you are planning to enter an on going trend -or to a ongoing pull back- do not enter unless there is at first considerable counter trend strength: this Brooks stresses. so if you wait for a pullback to enter a bull trend.......entering the pull back is counter trend trade : the present trend is the pull back.so the market must show strength against the pull back before you can consider entering
this can be subjective. for example entering on a pull back.....is it a continuation or reversal? you are entering when the pull back ends...... so you are entering when the pull back reverses.