[thetatrader]

Originally Posted by forrestang »

But in the meantime, real time throughout the day, continue to mark it up.....trying not to get too caught up in how correct you are labeling everything. There is wiggle room for interpretation of all the pullbacks.

I agree. Mark the charts up as you see them and if you are marking them up wrong the P/A most likely wont look right. But at least at the end of the day in hindsight, you will be able to see any mistakes. and see why.
Good luck.

[BlowFish]

Legs are really 'swings' they are an intrinsic part of price action anywhere you can draw AB CD type patterns you have two legs.

Here is a 5 minute chart see the 2 doji's? Maybe not so clear (though its not hard to learn to see things like that)

Drop down to 1 minute TF and the BC move is pretty plain

[rigel]

Think Al has looked at these 1min charts in conjunction with his normal trading chart 5min for so long, that he is able to visualise action on 1min from his 5min charts, this comes through in many of his analysis in the book and as such many of the pattern names are clear to him, but it can lead another trader into a mindset where he or she begins to figure out which multiple types of pattern the unfolding setup matches, searching for 3/4 reasons to trade, whereas in many cases it is just a setup at a previous support or resistance level.

Today I was going through the chapter on trend reversals. Some straightforward reversal setups at least to me have complex analysis on the basis of if there is a Double Bottom Bull flag or not, is it a failed breakout of the 2 legged bear flag of the final 2hrs of yesterday, is it a L1 failure, page 192. By the time all this is processed in realtime, the trade is gone.
So although the method appears simple in terms of trading from only a 5min chart, it can get quite complex trying to figure out number of elements in realtime IM0

That is why the volume helps me a great deal to do away with all this.
But that is just my way)

[szubaark]

I like the above post. This book is for someone who is breaking even or even
tiny profitible. Usually a trader with 5+ years Real Time experience. Also,
basic understanding of "everyday intraday tendancies" helps. I do not recommend this book to a newbie as it is too many things to look at. It might seem easy following those charts in the book In Hindsight, But real time its Guerilla Warfare.

Al even mentions he hasnt been Constantly Profitible only after 20 years. Seems like thats the average for every Constantly Profitible Pro.

One needs to take breaks, otherwise its easy to get burned out in emini daytrading.

[zonetrader]

I've got a question for Al or anyone in the forum.

Does anyone know what rules reset the count for H1's and L1's besides a numbered H4 or L4?

Al has talked about how to mark the H1's to H4's and L1's to L4's in his seminars, articles, and book. But I've yet to see an explanation, or maybe I missed it, of what starts the count over except a numbered H4 and a L4. I must be a little slow, but I have been studying numerous charts and can not determine what rules consistently reset the count over.

I understand that a High (H1) occurs in a down or sideways leg of a bull move and it is the first bar with a high above that of the prior bar, and is marked as an H1. If there is then a high that is lower than the prior bar, the next occurrence of a Higher High is a High 2, and so on for H3's, and H4's when the count is reset set to H1.

The rules are the opposite for a Low (L1). It occurs in an up or sideways leg of a bear move and is the first bar with a low below that of the prior bar is marked as an L1. Then if there is a low that is higher than the prior bar, the next occurrence of a Lower Low is a Low 2 and so on for L3's, and L4's when the count is reset to L1.

Until I read page 120 I have been numbering H's until there was a close above the high of the last marked H bar, and I thought this reset the count to a new H1, (or there was a numbered H4 which restarted the count over again). I have been numbering L's until there was a close below the low of the last marked L bar, and I thought this reset the count to a new L1, (or there was a numbered L4, which restarted the count over again).

What restarts the count over again for both an H1 and L1 if you do not have an H4 or an L4?

I keep looking at figure 4.16 on page 120 of Al's book, and my H and L numbering system was incorrect.

Why did the L count continue with a L3 and L4 after the 052808 12:20 L2?

Why did the L count reset to an L1 after the 052908 7:30 L1?

Since properly numbering H's and L's is critical to understanding Al's Price Action analysis I would so much appreciate anyone's help with this issue.

[thetatrader]

Zone, first don't kill your self with the labels, rather try to make sense of what the market is doing (telling you).

Imho page 120 should be edited. for example the H3 @9:00 is not the H3 for the day or the move It is the H3 of the bull flag that formed after the 8:00 L1

But Looking at the chart you should be able to see it is a bull and should be buying pullbacks regardless how you label the bars.

the way I Label the bars is as follows in bull I will label pull back H1, and H2, then when the market moves up I start over again H1 H2. So if I am getting H3 and H4 in the same pull back it is most likely barb wire or the trend has reversed. thats just how I do it right or wrong. If it make sense to me thats all that counts. If some how I label page 120 the same as Al but it didn't make sense to me it would not add any value to my trading. so I don't worry about it.

Maybe page 120 is Al's odd way of saying don't get cought up in his labeling system. use what works for you.

[kuky969]

Originally Posted by zonetrader »

The rules are the opposite for a Low (L1). It occurs in an up or sideways leg of a bear move and is the first bar with a low below that of the prior bar is marked as an L1.


Why did the L count continue with a L3 and L4 after the 052808 12:20 L2?

Yes I would like ask same question
In book in page 118 AL write "......when a bear trend or sideways market is corecting sideways or up,the first bar with a low below the low of the prior bar is a Low 1...."
Sorry but market on figure 4,16 page 120 is bear or sideways ???, why he marks L1, L2 ......???

[thetatrader]

I marked up this chart a little the way I do when I am trading.


L2 down to bar 1 breaks the trend line (not drawn). so you can start looking for sorts but not yet. the L2 at bar 1 did not make a scalpers profit and could not close be low the 20ema. Bar 2 give you a low 3 and still no close below the 20ema.
bar 2 is a double bottom bull flag and a M2B. two reasons to go long. At the H4 but You could name that bar what every you wanted. would not change the fact that there was a double bottom bull flag and the market could not close below the 20ema. Its a good long.
Note the H2 long after bar 1 was a reasonable trade as well and only gave you six tics of heat as did the H3 but the H3 was not such a good entry Imho.

Hope it helps