[szubaark]

Highlighter area..I had Short there real time i posted

3 Pushes Up AGAIN (#2 Push was possible DT Bear Flag) but it DB with previous swing low for another push up #3... IF we bounced AGAIN here at EMA we would re-test day highs most likely

As you trade this style you will realize there are a lot of naunces to this.
At the end you just trying to make it your OWN Style.

[Maletor]

Highlighted area was tough for me to read.

And yes, the point about style is something I'm discovering too.

But, you have to remember that the pros are the people who are making money consistently. Therefore, they are all together buying low and selling high.

So you can take whichever way you want to get a read, but ultimately if you're not buying low and selling high, that style is not working.

[BlowFish]

Originally Posted by Maletor »

But, you have to remember that the pros are the people who are making money consistently. Therefore, they are all together buying low and selling high.

This is a belief that many hold, beliefs are powerful as they shape your thinking in a fundamental way. I personally happen to believe that it happens to be one that is not correct. If you look up the commitment of traders report it shows by far the largest participants (in futures markets at least) are 'commercials' by definition these are hedgers so not profit motivated in the traditional sense.

Even if you don't buy into that, if you believe that 'the pros' you speak of are conducting the majority of the volume then as futures are a zero sum game (excluding transaction costs) there must be other loosing 'pros' on the other side of their trades.

I also think the buy low sell high paradigm is not that useful (again only imho) but that is too large a topic to go into here. To bring things back on track Brookes uses the paradigm of 'locked in' and locked out' traders to explain short term price movement,

[thalestrader]

Originally Posted by BlowFish »

I also think the buy low sell high paradigm is not that useful

My experience has been that it is much easier and profitable to "buy high and sell higher" or to "sell low and buy lower."

Now back to Brooks ...

[Gabe2004]

Originally Posted by thalestrader »

My experience has been that it is much easier and profitable to "buy high and sell higher" or to "sell low and buy lower."

Now back to Brooks ...

If you think of it Brooks advocates the same thing.
He says that one should wait for a definite break of a trend to place trades agains the previous trend direction which means that he is not always buying low and selling high or selling high and selling low.

It seems much safer to let some one else test the water first.
Also one of the most important things I got out of the book was that Brooks says that trends will last longer than we anticipate.
The above will explain why so many fail at picking tops ("surely it went high/low enough" )

[rangerdoc]

Like Brooks, Linda Rachke is always talking about looking for places where traders are trapped and taking the other side when they bail. Raschke is very similar to Brooks, except she tends to target swings, while Brooks is a pure scalper. Raschke is also very quick to credit Wyckoff & Taylor.

I think "Buy low, sell high" does a great disservice to many. It can work great for reversals. But you'll get your ass handed to you in a trending market. Echoing what thalestrader said, I'm a "buy strength, sell weakness" guy. Even at bottoms, I'm looking for a show of strength at support before I go long & I sell at the first sign of weakness near resistance. So trend trading can consist of buying high & selling low.

[Maletor]

These are not trades I placed real time, just doing some analysis of days past.

6/18
1 - H1
2 - H2, M2B
3 - DB, H2 variant, EMA Gap
4 - 3 pushes up, double top lower high pullback after trendline break, breakout pullback to trendline
5 - L4, 2 legs up to test days extreme (couldn't even do that so made HnS right shoulder), reversal bar.

6/19
First 90 min. chop had an H2 then an L2 that worked out. Not exactly sure how to play this. Just throwing down sell stops at the resistance and buy stops at support whenever you see an inside bar or some other setup doesn't really seem productive. What am I missing here?
Is the correct play to in fact sell the L2 at 1 and buy the unmarked inside bull trend bar that happened around 11AM EST, but then reverse on its failure?

I must be missing something here.

1 - Double top, L2 (But how can I say that's a valid entry without saying the inside bar 8 or so bars later was not?)

2 - Breakout pullback to the prior LOD/ false double bottom, L1

3 - L4, M2s, (L2 signal was a doji so sellers waited)

4 - Wedge, 2nd try to reverse LOD, trend bar.

[dbandas]

Thank you.

After the HH marked bar around 7:30, why isn't the second candle after that the H1, and the second candle after that the H2?

Did you just pay more attention to the fact that it's just the same pullback with a little wick making it higher than the previous candle?

I love your book. Thanks for all of the work.