[DynamicFx]

Had this closed out at 94.20 earlier this morning, which I set last night, for +43.

What I'm finding from the book, is that I'm more comfortable with setups that I already could in part, see myself before reading the book. Brooks has just clarified the situation and gave me confidence to trade what I see.

I'm still looking at his other observations, but for now I'm concentrating on these trendline breaks and pullbacks. The target was where I thought price might stall, at the beginning of the move down yesterday. It's actually gone higher now, but I'm still happy with the result. Other pairs had the same pattern, and I should have actually went with GBP/USD instead.

It also highlights something he mentions in the book. The last push down appears to be a fake head and shoulders break. The line across the bottom is where I see the pattern (you can't see the left shoulder on the attached chart).

[bakrob99]

Originally Posted by mosley »

Maletor, thanks for posting your charts and more importantly your explanations. Simple question on your 1st trade above - what does MM mean? Didn't see it in Al Brooks' book, have never seen that particular abbreviation.

I am sure he means his Money Management stop. (ie trailing his stop up after netting 4 ticks)

[Mr_black]

Today's trades Bars# 5,6 Mtl Fbo(Long) no entry on this one,and 2 longs -8 ticks (stop hit) , + 15 ticks....done for today and for the week P/L+52 ticks

[davewolfs]

If you played every pullback and the opening bar today today's chart was over 20 points and that is just the morning session letting a final position swing into the afternoon.

[mosley]

Difficult morning for me. Of course in hindsight it's obvious, just jump in after the break of the opening bar high. Problems were many:

• the gap was small, only 1.50 pts, and to use Al Brooks' term the market was anything but "overdone"
• there was over 2 hrs of congestion in that general area from the previous afternoon, and as Al said on pg.305 regarding one of his examples where the market gapped down huge (which is theoretically better), formed an opening bear-trend bar, and yet he didn't short below it: "A short based on the bear trend bar would be risky, since it is in the area of the trading range of the final hour of the day before."
• a buy above the opening bar with a stop below it would've meant a 2.75pt stop if hit. While not excessive that's a bit steeper than I like to risk, especially with the other problems of the trade listed above
• on the 9:50 bar the market stalled, formed a bear-trend bar (or largish-bodied doji) and I considered a buy above it. But to that point there had been no big trend bars clearly pointing the way, and serious resistance was right overhead. Entry would've been 955.50 and yesterday's high was 956.75.
• nice pullback at 10:20/10:25 and in hindsight should've bought above the 10:25 bar. But in realtime I didn't because we had just completed 3 clear legs up and I didn't want to bet on a 4th leg.
• another nice pullback at 10:40-10:50 which, in hindsight, I should've bought above the 10:50 bar. But this time I would've been betting on a 5th leg. Obviously it worked. Also the 6th leg worked too. Go figure.

I did play the 1st pullback to the EMA, but unlike the overwhelming majority of trend days that close at/near their high this one sold off and I was lucky to make 5 ticks.

BTW, bakrob99, thanks for the tip re: MM being Money Management. Never heard that one before. Have, of course, heard of break-even (BE) stops, and trailing stops, but never money management stops! Good to know.

[davewolfs]

The gap really didn't matter. We had a failed wedge yesterday up to the high and made two legs down. The upswing at the EOD was just the beginning out of the second leg and this morning was a continuation. The first bar was a strong bar and any trade on either side of a strong trend bar is a good trade.

On the 9:50 bar, the market pulled back after all bull bars. This was an inside bar and a low risk long trade, we were only on our first leg up right now and I expected a minimum of two. From here the rally took off. Every pullback after this took off and not a single swing trade was stopped out. The highest risk trade was at the 10:05 pullback as this was 3.75 pts but it still worked. Either way, you could have swung from the previous entry and all would have been good.

Bottom line, strong swings like this are far and few and when they show up you should be buying every H1, H2 that you encounter.

Between scalps and swings on the morning session there were almost 25 pts to be made and if you refer to all the with trend examples in the book, I don't think that it gets much better then what we saw on the tape today.

[profit-trader]

Hi all
I have been trading AL Brook technique for a while. Are there any live chat room in here that talk only his stuffs?

Thank you

[ACS]

Lessons from Thursday for me. You can look at Wednesday from 10:40 (NY time) on as a big bull flag so buying the first bar bull breakout Thursday was a logical trade. You needed the full 2 point stop but the trade did work. That huge 9:55 bar was apparently a very short term climax and that is why there was such a big pullback before the trend resumed. Situations like that require a bigger stop or waiting for another setup. The rest of the day just required a suspension of disbelief in the trend.