[grimweasel]

Hey Swan, I'll be following this with interest. I'm a great fan of Al Brooks' book and I have highlights and flags all over my copy. I would say it's the 'Bible' for the price action trader and I urge every new trader to read it. I have a mate who is a Broker in London and he purchased a copy and has said it's revolutionised his view of the charts/markets.

My interpretation of the H1 and L1s is that it must be at a swing (ie the price must reach into new ground but the candle/bar high /low must be taken out by the next bar to confirm it as a swing point) OR a HL/LL at the 20ema.

I'm sticking to 3 trade types but I'm out on the daily Forex pairs.

1. Wait for a significant TL break and then look for PA to get back with the trend, expecting a HH test of the 'old' trend's extreme.

2. Long/Short at the ema with H1's and L1 and M2Bs etc along with ema gap bars.

3. Taking every with trend PA SR opportunity / pullback that the market offers.

I'm re-reading the book for the 3rd time and I still keep learning as I read, the stuff I missed before
Good trading

[swansjr]

Originally Posted by grimweasel »

Hey Swan, I'll be following this with interest. I'm a great fan of Al Brooks' book and I have highlights and flags all over my copy. I would say it's the 'Bible' for the price action trader and I urge every new trader to read it. I have a mate who is a Broker in London and he purchased a copy and has said it's revolutionised his view of the charts/markets.

My interpretation of the H1 and L1s is that it must be at a swing (ie the price must reach into new ground but the candle/bar high /low must be taken out by the next bar to confirm it as a swing point) OR a HL/LL at the 20ema.

I'm sticking to 3 trade types but I'm out on the daily Forex pairs.

1. Wait for a significant TL break and then look for PA to get back with the trend, expecting a HH test of the 'old' trend's extreme.

2. Long/Short at the ema with H1's and L1 and M2Bs etc along with ema gap bars.

3. Taking every with trend PA SR opportunity / pullback that the market offers.

I'm re-reading the book for the 3rd time and I still keep learning as I read, the stuff I missed before
Good trading

Thanks for the reply. Yes, I do consider Brook's book the "Bible" for price action as well. There is so much information you must read the book several times. Likewise, I found his trading style revolutionary. I find myself buying and or selling in areas where I never would have just a few months ago. But strangely, it feels more natural. I think it's because I understand the psychology behind the price and thus, it makes sense to enter a particular trade as described by Brooks.

Yes, my initial impression of H2 and L2 appears to have been wrong. I do find his definition in his book confusing and I'm now adjusting my definitions.

Best wishes!

[swansjr]

Day 10 and Day 11
Friday, November 20, 2009

No trading on Thursday, November 19.

P&L: ($284) on 4 trades.

This day simply consisted of frustration as the market proved me wrong. In retrospect, I totally misread the market and discovered that I accidentally placed an important daily supportlevel in the wrong location. This error most likely cost me hundreds of dollars today.

First, watch the gory details of my trading in the following to videos:

Live_Trade_2009-11-20_1.swf
Live_Trade_2009-11-20_2.swf

Then hear my explanation on my errors which caused me to misread the market:

Live_Trade_2009-11-20_Review.swf

It's all about the details! On a positive note I did keep my cool, I think, and did follow my plan even though I was wrong on my market reading. You can be sure I will be much more careful going forward.

[swansjr]

Day 12, 13 and Day 14
Wednesday, December 2, 2009

No trading on Monday, November 30. No trading on Tuesday December 2.

P&L: $80 on 3 trades.

Today's trades were largely clear cut to identify and were executed textbook fashion. All trades were setups based on price bouncing of a trendline and/or 21EMA. Most notable today was my last trade which was a long. Price came down to touch a longer term bullish trendline. This trendline extends for days and I think it's an important lesson in keeping trenlines on your chart for days or weeks. I don't know how often I see price react at these levels.

Below is an image of today's trades which are self explanatory.



I did record today's trades but I accidentally recorded it as a mp4 file.So I will not post it.Instead I decided to comment on a couple of observations about price action. Price today in the EC, at least in the early morning, was following the rules and created very predictable entry points.

Trade_Review_2009-12-02.swf

[swansjr]

Day 15
Thursday, December 3, 2009

P&L: $107 on 2 trades.

Quick update today. Two trades that consisted of a simple Trendline touch and EMA touch.

Below is an image of today's trades which are self explanatory.



Attached is today's video.

Live_Trade_2009-12-03.swf

[swansjr]

Day 16
Friday, December 4, 2009

P&L: $710 on 1 trade.



I was able to capture some of the movement after the U.S. unemployment figure came out. The market was moving down sharply and I had to sit and watch for a set-up. Painful! Then an EMA touch happened and I took it. Within 3 minutes my target was hit for a $710 profit. The large profit was due to me seeing how fast EC was falling. Thus, I abandoned my scalp target and replaced it with a distant trendline that appears on my daily chart. I also aggressively trailed my stop. Well, EC ripped right down to the daily trendline while I took no heat. This was my biggest daily profit so trading EC. Most importantly, I followed my plan 100%. I was tempted to continue to trade, and if I was a better trader I should have. It is days like this, when the market is rewarding your trading, you should stay in. However, because I'm not consistent enough I backed off. That was probably the right thing to do. I look forward being more consistent where I can continue to press days like this.

Attached is a video of today's trade.

Live_Trade_2009-12-04.swf

[dwt1020]

FYI Brooks web site now offers Dr Brooks webinar live each day...

if you are interested in learning from the author you can go check it out..


Brooks Price Action - IntegraMOD Default

[swansjr]

Day 17
Monday, December 7, 2009

P&L: ($127) on 1 trade.



The very second I sat down at my computer I saw a 21EMA Touch setup had just formed. I jumped in at 5:11am. Within 60 seconds I was drawing trendlnes on my chart and noticed I was long in a bearish environment. I held on to the trade and was stopped out soon after. I really should have taken a moment or two to view the bigger picture. I would have noticed a bearish trendline was broken and what I was witnessing was most likely bearish action.

No video today as I did not even have time to get my software up-and-running.