[monad]

There is a danger in taking these setups in isolation.
Al points out clearly that a TL break does not equate to reversal, Refer to the Best Trades chapter.
Also avoid anything that looks like barbwire, which is where the short was, there is section on how to trade barb wire page 320, especially after a false breakout, you have to take the trade in the other direction, At the initial stage, it is best to avoid these,
Al emphasizes on the need for patience for clear setups ie. when in doubt, stay out.

After a strong trend, if there is a TL break, expect the market to test the previous high in 2 legged move.

Lastly this was also the time period ie. after lunch EST when reversal occur, it is there somewhere in Al's book.

Plus in that pattern there are clear candlestics of climactic nature ie. doji bars closing on the high with long tails , Al has pointed these out as indication of buying.

Think the book is not an easy read, there are so many elements which have to come together, however it would be best to focus on the Best Trades at the initial stage, until such time as when all the chapters have been studied over and over again.
IMO

[jolee]

You at BW , also look to left at support prices - dont short bottom of trading range.

[BlowFish]

Originally Posted by thetatrader »

Price action setup buy the book.

Nice chart. It's worth mentioning that there are numerous trend line breaks that did not result in two legs. (un drawn trend lines that would have been valid until they broke resulting in the 'final' channel). Am I right in thinking that first break you would anticipate continuation (particularly with a micro trendline)? It looks like that would have been an OK scalp anyway.

I have to say I am always far to ready to take counter trend trades I'll even scalp the 2nd leg of a 2 leg corection if it looks like there is enough mileage in it. But,the idea of having a conclusive (a close or two across the line with good separation perhaps) trend line break and re-test is a great way to keep you on the right side of the market

[trader273]

Originally Posted by szubaark »

Hi

I started paying attention to these M2Sell/Buy setups. Al says to wait for a small candle then short/buy at top or bottom of Range BUT you will almost never get a small candle. usually on 2-3rd EMA touch they will just spike.
BUT why didnt this one work today? Everything was textbook for Short BUT kept creeping higher. Go figure.

No method is a 100%, just because one instance stops out doesnt meant the system is flawed.

[BlowFish]

Originally Posted by szubaark »

snip....


BUT why didnt this one work today? Everything was textbook for Short BUT kept creeping higher. Go figure.

In a nutshell barbed-wire.

Theres always stuff you can say with hindsight (like the subsequent 'proper' test of the old high) but the BW was already apparent.

[thetatrader]

There was a double bottom bull flag made up from 2 and 5 bars back aslo had was a failed third attempt lower with trapped shorts that will not be looking to go short any more. witch makes for a one sided market a long after that short would have been a good trade.
but this is all hindsight.
The book is always telling you to look for trapped traders. witch is easy in hindsight. But bottom line stay away from Barbed wire. and if you find yourself looking really hard for a set up then it is most likely not a good set up. = Wait

Thanks for the chart was a good observation hopefully every one will continue to post and we will all speed up the learning.

[szubaark]

Thing is most days will be Choppy,Whipsaw Ranges. Trading these setups in real time is a whole differant ballgame then mark up a chart at end of day.

I hope everyone keeps posting their Entries each day with charts so we can fight this beast.

[szubaark]

Originally Posted by BlowFish »

Nice chart. It's worth mentioning that there are numerous trend line breaks that did not result in two legs. (un drawn trend lines that would have been valid until they broke resulting in the 'final' channel). Am I right in thinking that first break you would anticipate continuation (particularly with a micro trendline)? It looks like that would have been an OK scalp anyway.

I have to say I am always far to ready to take counter trend trades I'll even scalp the 2nd leg of a 2 leg corection if it looks like there is enough mileage in it. But,the idea of having a conclusive (a close or two across the line with good separation perhaps) trend line break and re-test is a great way to keep you on the right side of the market

Hi, Can you show Chart examples? its hard to follow without examples.