Futures I Trade Show & Brooks Book

[forrestang]

Originally Posted by Maletor DB - I've never heard Al Brooks say support and resistance is something he doesn't use. He calls all support and resistance double tops, even though it may be triple of quadruply pivoted.

Actually, starting on page 61 is the section about S/R. Starting on Page 55-70 is the chapter on areas of conviction.

The problem here is what is being presented in the thread, which has left a lot out as many are still learning. For whatever reason nobody has really spoken of it. If you notice, most of the trades in the material are trades that at least 'base' at some prior S/R level.

What is not done in the book is going out on say a 100K CVB chart, and looking for levels. I guess he may have found that complicated his trading at some point, which is one of the problems I have had, but it is a learning process so maybe eventually it will add to my trading?

[forrestang]

Originally Posted by Maletor Hey forrestang, How come you didn't take the L3/Double top/channel overshoot and decided to wait for L4? Simply because you wanted a bear trend bar?

No, I will usually try to wait for a second entry. Other than the am breakout type deals, I usually will wait, I guess that's why I always have so fewer trades than everyone else during chat?

The L3 to me is not a second entry. It's an entry AFTER the second entry, once that rolls by, I look for the second entry OF the second entry which is an L4. So I'm usually excited about the L2 and L4s.

Obviously sometimes this works both ways though.

[DbPhoenix]

Originally Posted by forrestang What is not done in the book is going out on say a 100K CVB chart, and looking for levels. I guess he may have found that complicated his trading at some point, which is one of the problems I have had, but it is a learning process so maybe eventually it will add to my trading?

Depends on what you're going for: a few ticks, a few points, or letting your profits run until the trend is done. That, unfortunately, is a decision you have to make all by your lonesome.

[mbfromla]

Here is a chart for July 7 guys,,,

[djohnsonhot]

Very Nice Charts, you all! I appreciate these.

DJ

[szubaark]

7/7

Total 12 trades for -3.50
On one trade Price never went below prior candle low but BID Flashed and i got filled anyways, got Mad -2 Loss
After the consolidation around 1:35 i thought market is trying to put bottom so got stubborn and rode my Long for a -5 Loss.

Another tough day for me. This is REAL Trades i took. Not marked up end of day crap that i see a lot being posted here. REAL TIME trading and end of day are not same.

[djohnsonhot]

Szu:

One thing I read in your post caught my attention:

........."around 1:35 i thought market is trying to put bottom so got stubborn..."

For one thing, I agree that we need to post real trades.....I also think that you are showing that you are studying your trades post-session and are man/woman enough to admit when you see yourself as stubborn.

I did the EXACT same thing on Monday, if I recall: I thought we were going short all day and entered a VERY stupid trade SHORT AT THE BOTTOM!

I have many trading rules, and one of them is a combination:

" Never enter short at the bottom of a range (esp. if several waves have occurred short) and NEVER go long at the top of ranges."

Allow me to add another rule: let the VOLUME, the PRICE ACTION, and S/R and ATTEMPTS to go further or roll-over, or reverse course to guide you. Do what Brooks says and let TWO attempts guide you.

Also, one of my main trading rules: NEVER trade against the prevaling trend, even if the entry is into a lucrative counter-move (pull-back in my book)....always go for the meat of a nice trend trade and keep looking for those pull-backs into the 20EMA (I use 22 periods, Exponential and TRIPLE EXP)....and look for that SIGNAL bar (doji, esp those STARS or those LONG-WICKED candles with that long wick on the top or the bottom - - which tells you that there was an ATTEMPT to go long against a short trend and vice-versa in a long trend.

In essence, stubborn is the word for it if you THINK that there is something happening, and in fact the PA is telling you, shouting to you, that you are against a trend.

FINALLY! There is always another trade in the session to be had. Wait out those trades that you say to yourself: "Would I bet a thousand dollars on this entry I am ABOUT to take." Bet that thousand on MORE THAN ONE indicator, more than ONE attempt, and more than one reason.....never WILLINGLY trade short or long against the prevailing trend.


I have shared with you pretty much all of my rules.

DJ

[rigel]

Originally Posted by DbPhoenix A suggestion. Once upon a time I became involved in a "Ross Hook" thread. The participants were having all sorts of trouble making them work, as well as the "1-2-3s". The key problem as I saw it was that they were finding these "hooks" all over the place, even in the middle of nowhere. Even worse, they were often getting trapped into a counter-trend-trading loop. I suggested that they first locate support and resistance in their charts (if they knew how to do so), then play only those Ross setups that occurred against one or the other, i.e., against either support or resistance. The success rate was, of course, much higher. Moral of the story is that those who are having trouble making these setups work may want to plot support and resistance first, then take only those setups that bang up against one or the other, as you suggest. If it doesn't help, then at least the trader is no worse off than before.

Spot on Db, folks have a similar problem with VSA as well,
S/R levels play a crucial role and infact as pointed out Al does highlight this in a section dealing with horizontal line: swing points and other key price levels and I am sure he takes note of these levels from higher timeframe charts as well. Having gone through the book it is clear that he has watched both higher timeframe charts like 15, 30 etc and 1,2,3min, that he does not need them anymore now, he is able to blend the candles mentally, very similar to what happens with indicator divergences like RSI, MaCD etc, after a while you can see them coming just by observing the peaks/retracements of price moves against a MA.

[BlowFish]

Originally Posted by guyfibonacci I'll get it right eventually.

Welcome to the forums, if you are having trouble with something just ask

[BlowFish]

Originally Posted by thalestrader .............snip........ ......... If I'm not mistaken, you were the same one who said that price never signals the big moves before they happen, to which I responded that my experience has led me to believe the oppposite is true. You may have found a decent book to read, but there is a big difference between reading a book and reading price. I mean no disrespect to Brook's or his book, but his book is a book of "set-ups." .......................

Of course to a break out trader it doesn't really matter whether price signals the big moves before they happen . If you take trades in a location where there is good potential for a big move (at major S/R), well chances are better to get a good move.

You are right about the Brooks book. It is 'setup' orientated, It is also very firmly 'scalping' for ticks focused (though he talks about holding for longer). It is not really a 'why things happen book' it is a book of observations and gudelines (and there are a hell of a lot of them) The only 'why' he talks about (correct me if I am wrong here) is from the point of view of where traders have entered, where their stops will be, where they will be locked in from, or where they will be locked out. This makes sense for a scalp orientated approach.

Originally Posted by DbPhoenix ..... given that so many of the people posting here are new, I'll point out once that ignoring overnight activity is a mistake since this is so often where the movement of price after the NY open is "telegraphed". There are no "gaps" in instruments that are traded around the clock.

This particular behaviour is one of the many observations that Brooks makes. It was not something that 'jived' with me for the reasons you mention (also a 'gap' is no reason to ignore the longer term context of where price is at). Thats not to say it may or may not have merit. It would be very simple to test by eye balling charts.

I found it an interesting book and took away a couple of things (which I think I mentioned early in the thread). Having said that it is quite difficult, I imagine particularly so for someone who does not have a reasonable understanding of price action to start with.