Futures I Trade Show & Brooks Book

[Futures I Trade Show & Brooks Book]

the move to 930 was a two legged sideways move that had 2 smaller 2 legged moves in it. as the move traveled sideways, it broke the trendline from yesterday and this move became a large possible Final Flag, so I was looking for reasons for the trend to turn down. The false BO of the top of the channel was perfect and the trend was then down from there unless something else developed, which it did not.

 

 

tcl trend channel line

bw barb wire

dt double top (bear flag)...the Lower High was in the form of a Double Top Bear Flag

 

Here is another question for Al or anyone else with some insight, as this is material from the first 50 pages of the book.

 

On the chart in the picture, bar 4 was said to NOT be a good signal bar for a short. But, it does seem to come right up to the MAJOR trendline, and it is a pretty decent reversal bar(ok sized tail, shaved bottom so it was sold right into the close).

 

It is also the second leg up from a low of the day reversal. So there seems to be a confluence of events that would make this a reasonable short setup, other than it being an L1?

 

It wouldn't be reasonable to short there because it followed 11 bull bars in a row - one would want to see some more demonstrated strength to the downside, such as at least a 2nd failure to break the trend line and a break of the trend line between bar 3 and the 11:30 bar. Traders who took that L1 short were trapped and helped the move surge higher in bar 5.

Somewhere in the book, Mr. Brooks mentions not taking an Lx short entry if it follows 4 bull bars in a row.

[Futures I Trade Show & Brooks Book]

the move to 930 was a two legged sideways move that had 2 smaller 2 legged moves in it. as the move traveled sideways, it broke the trendline from yesterday and this move became a large possible Final Flag, so I was looking for reasons for the trend to turn down. The false BO of the top of the channel was perfect and the trend was then down from there unless something else developed, which it did not.

 

 

tcl trend channel line

bw barb wire

dt double top (bear flag)...the Lower High was in the form of a Double Top Bear Flag

 

Is the tcl following the final flag also a 3rd push up? I have marked what I see as 3 possible legs up in the attachment.