[thalestrader]

Originally Posted by bakrob99 »

THales - I can not find the chart you referenced. Could you re post please?

Sorry about that - here are the two charts I referenced.

[Mr_black]

8 good setups so far

[RichardTodd]

Originally Posted by DbPhoenix »

The Brooks approach -- like any approach which focuses on indicators or candles or bars or some other form of illustration -- is a contradiction in terms, i.e., if one is trading price action by trading bar by bar, then he's trading bars, not price action, substituting the bars and whatever setups are created with them for the indicators that he's worked so hard to put behind him.

Well said. In my view, when people say they've sworn off indicators, they usually mean they've sworn off lowpass filters. Many of them still use bars and all kinds of further derived info like trendlines and fibs and pivots. And to me, any derived information not on the tape itself is just as much an indicator as age-old oscillators.

[Shamal]

Originally Posted by DbPhoenix »

If I "expand", I'll likely hijack the thread since "trading price action", to me, means trading the movement of price regardless of how the movement is illustrated. The Brooks approach -- like any approach which focuses on indicators or candles or bars or some other form of illustration -- is a contradiction in terms, i.e., if one is trading price action by trading bar by bar, then he's trading bars, not price action, substituting the bars and whatever setups are created with them for the indicators that he's worked so hard to put behind him.
since I've probably already offended most of the people who post to this thread. Rather I'll just provide an example, and those who are interested can pursue the link just above.
. The trader who had noted the R levels ahead of time would be ready to act.

If one wants to see what price is actually doing, it becomes necessary to use a smaller interval.

Even though this isn't Brooks, understanding it may help the Brooks followers to distinguish among those setups which are most likely to pay off and which are more likely to fizzle.

Thanks for the explanation. Anything that helps understanding price behavior is useful and provides an extra edge to a trader , there is no need to be blinkered in this business. If somebody does not find use of S/R or volume, leave it out of your trading. Personally have no problem incorporating sound, logical concepts. Think it is totally childish to squabble over my and your thread.

As for the many Al brooks setups, it is relatively easy to mark them up in hindsight, like all patterns and indicators, but in realtime it is not that easy to read and act upon with confidence but if these patterns setup against some of the significant support/resistance levels that would certainly provided that much needed confidence.

[DbPhoenix]

Originally Posted by Shamal »

As for the many Al brooks setups, it is relatively easy to mark them up in hindsight, like all patterns and indicators, but in realtime it is not that easy to read and act upon with confidence but if these patterns setup against some of the significant support/resistance levels that would certainly provided that much needed confidence.

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.

[forrestang]

Originally Posted by DbPhoenix »

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.

That's why on my charts, I always have the HLC of prior day, O of current day and the Globex H/L on there. I also used to go and find levels from a 100K CVB chart.

I started to feel like I had too much information at that point and I felt like it was hampering my decision making process. Probably just too many levels?

I've always tried reading S/R threads but seldom do I get the info that works for me about good levels.

Maybe we need a thread in the candlestickcorner about S/R? I'd start it but I'm not knowledgeable enough to lead the discussion.

[DbPhoenix]

Originally Posted by forrestang »

That's why on my charts, I always have the HLC of prior day, O of current day and the Globex H/L on there. I also used to go and find levels from a 100K CVB chart.

I started to feel like I had too much information at that point and I felt like it was hampering my decision making process. Probably just too many levels?

I've always tried reading S/R threads but seldom do I get the info that works for me about good levels.

Maybe we need a thread in the candlestickcorner about S/R? I'd start it but I'm not knowledgeable enough to lead the discussion.

There are already several S/R threads about, in various forums. Starting another may be helpful, but what would be even more informative is an explanation -- as brief as you want it to be -- of how you go about finding S/R, how you use it to evaluate real-time setups, and when and why it's helpful and when and why it's useless or even misleading to you.

In a nutshell, a "good level" is that at which traders balk and regroup, either retreating or busting through. If a given level is one which traders pay little or no attention to, then it's not a good level.

In the meantime, do a thread title search for "support" or "resistance". There may be an old thread somewhere that you can resuscitate.

Edit: You sparked my curiosity, so I did it for you. Here are several you may want to look at, including one here.

http://www.traderslaboratory.com/for...ance-4171.html

http://www.traderslaboratory.com/for...rket-4683.html

http://www.traderslaboratory.com/for...ding-3720.html

http://www.traderslaboratory.com/for...tance-161.html

[thalestrader]

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.

I have a friend who "finds" Ross Hooks everywhere, much to his and his equity's detriment.

Here is 1-2-3 "Ross Hook" that occurred on the EURUSD at what has shown itself to be an important S/R level in recent trade.

Almost any "set up" becomes remarkably easy and successful when it is applied while in agreement with support and resistance. The 1-2-3 is nice because price tests S/R and shows the validity of that level, prior to requiring a trader "fade" the move that is reversing.