easiest money in my life

for simplicity, for some time perhaps it may be considered to trade only one side. be bull or a bear. i think that makes sense to avoid over trading.

over trading is one of the biggest mistakes made in trading.

paper trade on historical charts and check out how it feels like
 
Brooks trades bar by bar.

it just as well can be leg by leg.

swing by swing.

trend line break by trend line break.

Support by support. resuistance by resistance.
 
what am i trying to do here.

trying to make sense of all this.

to systemize the way you should think.

maybe get a checklist which is the same thing as rules that i see many traders talk about.
 
here is something of interest.

those two trend lines are equal.

so that qualifies as a two leg move.
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is there a method to this madness known as markets?

i have always believed it is so.

And i have also believed that Brooks is the one person who has discovered this madness and has a big enough heart, to make huge effort to explain it to others.

that is why i was persistently reading his books videos for since 2007.

getting close to understanding his message.
 
markets move in two legs but if the two legs are not clear it is probably a trend.

once the counter trend traders start to be active you will again see the two legs.

as the counter trend traders get more aggressive the 'corrections' will get bigger and bigger until the correction becomes the dominant trend.

so at some stage both the correction and the trend may be the almost same and this is a trading range
 
after 30 years i am learning how to learn.

well i have proven enough times that i am moron.

be that as it may let us continue our systematic enquiry. our voyage of observation with an open mind, open eyes,open mouth [to communicate to others less fortunate than me: who refuse to see to observe ]

if you draw trend lines you will observe, that the steep trendlines, when broken become less steep.

this is consistent with the theory that strong moves continue more slowly.

if we know this why draw trend lines?

this is to measure the gradual change in the strength/momentum of the trend.

trends will continue but usually at a slower pace or momentum and that all trends start with a strong move that usually, eventually, slows down continuously.
if trend lines are drawn to new lows, in a bull, the trend lines will slope upwards but each trend line may be less steep than the other.

eventually there will be some which are horizontal and then the trend lines may start sloping down.do not forget you are drawing low to low, so this is clear indication that trend has changed.

also the trendline which will have the most touches will be one less steep. this is because that is the most sustainable speed of that trend.

that trend line will also be the one that will be tested usually twice.but sometimes more.


why do trend slow down slowly? this is because no seller wants to move the market down, she wants to continue to sell high, or buy low.
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