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One of my favorites over the years. She once said “the best indicator of price is price itself.” That one concept has stuck with me all these years and much of “what” I do and “how” I do it revolves around that idea.

BTY vanv0029 I appreciate most of your brooks contributions to the journal. My only beefs are your 3 points here. The whole purpose of this endeavor i undertook was to narrate and do so this live showing how and why I was NOT TAKING HUGE RISKS, How I was NOT lucky (I think the trade proved that...

For me there are no precise entries in terms of bull/bear pressures being applied to the markets. I mean I can devise a plan and say every time I see “such and such” a pattern I will place a buy order 1 tick above the high of the previous bar. In that sense yes I am making precise entries...

Yes, I don’t in anyway deny that entering on a stop below 11:35 is a classic Brook trade and a very good one at that. I did indeed label it as a LH MTR. It was a LH MTR preceded by a failed BO of a range. It was a great trade to take. But the fact remains I was showing an averaging down...

See what I mean? But to me this is a weak HH MTR and I would pass on it. To me the trend up looks more like a vacuum rush to the top of a forming Trading Range. It barely reaches thru the high of the opening bar.

In essence I did take the LH MTR but was already loaded up with 6 contracts when it took place. I just exited on the first leg down of the LH MTR as I had to go run errands. However, when I took my trade the LH MTR trade had not taken place and I was taking another trade. When I started trading...

It wasn't a trend reversal. It was a failed BO of a Trading Range. The trend reversal took place 3 bars after my last short entry. That was what brooks calles a MTR (major trend reversal). In particular it was a Lower high MTR. Those usually have two legs down and it did. I was averaging down in...

Ok I am back from town running errands. First thing I see standing out to me on the chart is I missed the move down to the bottom of the range (red arrow). I had to run errands so I just exited my 6 contract “averaged in” position at the green triangle. At any rate my position was exited with a...

I gotta go as I have something else to do. In summary, to considering averaging down begins with looking at larger time frames such as a daily chart along with some 24 hour or overnight charts such such as 60 min, 15, min, and 5 min charts to see price patterns on those charts that will help a...

Anyway I am back. Ate breakfast and showered. It is now 12:10 central time. I did short and averaged in and will post the snapshots of averaging in "stage by stage." First or the initial entry 1 contract MES. Note the red box. Second entry average in short. See red box now 2 short. Third...

It is 10:43a.m. We have a BO to upside. It is important to see how the last bar closes. To see of FT is good. I have marked the BO point and the Gap (box). Lets see if price holds above the BO and has more FT. If so I will then look to go long expecting a second leg up as the opening gap closes...

Waiting to see if price will close the opening gap or if the BO on bar 23 (last bar) will fail and price go back into the range now established or will it have FT and become a successful BO to the upside. So no shorting yet.

OK 10:23 am Still not enough weakness in the immediate context i.e. 5 min RTH's to consider averaging in on the short side. Still in BO mode. I marked the 10th and 18th bars will explain later.

OK 10:11 a.m. central time. We got a DT and a couple of bars with tails on top and price going back a little deeper into the range. We got 20 bars sideways to down. At this moment looking OK to averaging in shorting near the highs but will give it a few more bars.

Here is what the RTH chart looks like at 9:57 a.m. central time. 18 bars in since the open. Price is hugging the top of the range. Price also barely broke below the opening bar on bar 7 from the open and above the open bar on bar 13. We are on bar 18 (last bar) Price is in a BO mode. That is...

The above charts are all MES. It is now 9:44 a.m. as I type. The daily, 60 min, 15 min, and 5 min 24 hour chart all show weakness. So the theory is I would averaging down on shorts when the opportunity presented itself. That is on channels or ranges the safer bet is averaging down on the short...

Here Tyro. Today Feb 7 all the snapshots were take between 9:00 and 9:30 a.m. central time. Just a few minutes ago. Notice the contexts. First chart is daily, then 60 min, then 15 min, then 5 min. All on a 24 hour chart (or overnight chart) to show the larger context. Finally the last chart is...

That is exactly why a trader has to develop the skill on WHEN to average down and when to not average down. I don't just average down because I am losing on a position. The context has to support the process. While I do it a lot most traders probably should not do it very often until they learn...

The last two charts showed one averaging down trade (the second trade. If you blow them up you should be able to see it better. The red triangles are shorting entries OR exiting a long position. The green triangles are long entries OR covering shorts . The last two charts are the same trades...

First trade was a long entry near bottom of the range then waiting for a move towards center for 1 pt scalp. Second trade long near bottom of the range the added to that long as it moved against me. Exit with nearly a 2 point profit. Third trade was a short in upper half nearly upper 3rd of the...