what exactly is a second entry? note: IMO with special thanks to Dr Brooks. if there is a break of a bull trendline and then a buy signal is triggered that is a second entry long/buy. if there is a break of a bear trend line and then a sell signal is triggered then that is the second signal sell. a variation of this may be when there is one or two bar correction and then a buy/sell signal is triggered then this may also be looked upon as a second signal -a minor one,maybe? if there is break of a bull trend line and then a sell signal-a first sell signal-then this is a reversal. so if there is a move that breaks a bear trendline and then the sell signal comes this means that the move that broke the bear trend line was a CORRECTIVE move if there is a move that breaks a bear trend line and then a buy signal is triggered, then that move which broke the bear trend is a REVERSAL move. NOW IF there is move that breaks a bear trend line and then a FIRST sell signal is triggered ,and this triggering of a sell signal breaks a bull trendline and triggers a buy signal, which then breaks a bear trend line and a sell signal is triggered then this SECOND sell signal is Brook's L2 sell. if there is move that breaks a bull trendline and then triggers a first buy signal but after triggering this first signal it breaks another bull trend line and then a SECOND buy is triggered then this second buy, after two trend line breaks, is what Brooks calls, a H2 buy.
corrective moves : if there is trend line break and then a trade signal is triggered then the move which caused the trend line break was corrective move. if there is a trend line break and then a trend signal is triggered ,which is an attempt to resume the trend, but it fails and another trend line break is caused, then the corrective move continues. then if a trend signal is triggered, another attempt to resume the trend, this is the H2/L2 , which ends a two leg corrective move. if this trend signal fails to resume the trend, then, if there is third trend line break , and then a trade signal is triggered, this is the H3/L3. what is called a wedge by most.
all this is pure and undiluted Brooks. and he is called a fraud and i have been asked a thousand times why i believe in him !!!!! his only fault is that he has taken traditional technical analysis and made it unrecognizable.
That's an accurate assessment. In all his teaching he misses the simple TA setup to trade the first strong close after a swing pivot.
Hello padutrader, It's called Hustling. I respect Al Brooks Hustle, he getting paid. As I said before, 2 ways to make money in trading game. Not just trading, but real estate, crypto, business etc. 1. Trading. 2. Sell Trading Dreams to naive people.
Hello padutrader, It's not fault, it's by design. It's part of his Hustle, that's how he pay his bills and invest long term for his retirement. You just don't have enough experience in the Hustle game to know you being hustled.
You don't mention first signal. There are few to many 2nd attempts of entry, breakout of trendline is first or wait till price to breakout so far and come back to trendline for entry. This way many who put in breakeven stops are triggered, entry at or so many ticks negative to reduce risk. But all is a risk of not being in original entry cause some don't come back. I prefer to enter before breakout trendline to upside is broken, yes will have more losses but risk is much lower. Selling acts differently, price retraces less.
I call it a 2nd mouse trade. The 1st moues gets the cheese. The 2nd mouse is hungry. He waits and sees a pullback to the break and hops on. The 3rd mouse waited too long and tries to get in on the 3rd pullback but gets eaten by the cat.
the title is 'what is second entry?' everyone knows what is the first signal. if you want high probability trades then second entry is safer. if you want safe then you have to give up some profit for that safety. so if you take second entry, when there is no strong trend, then it is a scalp. for scalping you want surer profit but are willing to accept a much lesser amount. a second entry is trading the second leg first entry is good if it is a swing in a strong trend.
that is definition of a swing trade : lower probability, less risk, more profit. less wins as Brooks says trading is math