Is there someone who can explain Al Brook's H1 and H2 for me

Al gives a fantastic explanation of H2/L2 in this you tube video......

a H2 is nothing but a second attempt to go up when the market is pulling back from a bull move. if the second attempt to go up fails - ie the market goes down instead of up- then you can sell below the bull bar
 
a double top is a failed second attempt to go up while a double bottom is a failed second attempt to go down.
a two leg movement is two attempts to go up or down.

in a way you have to get used to thinking in a certain way-practice it with historical charts.

it is as Al says a fairly easy way to trade.....if not anything, it will keep you from making bad trades or cutting losses early, which is more than half the battle in trading!
 
i think it is ok not to bother whether it is H1 OR H2 OR H3 but to note that an attempt as been made by the market to go in that direction....if it does NOT continue in that direction then it is highly likely , it will go in the opposite direction.
this may sound complicated but try to see it on the chart.....once you get it it will become second nature and trading becomes simple
 
thee key to understanding Al is NOT TO BUY HIS BOOKS

I tried to trade reading his books and i lost money for ten years. only when i started seeing his videos on you tube that i started understanding him and made money.
he really makes trading simple once you 'get it' !
if you want to spend money-which i did have and so could not do-subscribe to his chat room
 
traderGOD said:
thee key to understanding Al is NOT TO BUY HIS BOOKS

I tried to trade reading his books and i lost money for ten years. only when i started seeing his videos on you tube that i started understanding him and made money.
he really makes trading simple once you 'get it' !
if you want to spend money-which i did have and so could not do-subscribe to his chat room
More...
His books are fine just need lots of time to read and then read again but the information is there
 
slugar said:
His books are fine just need lots of time to read and then read again but the information is there
More...
i just could not benefit from the books-it may be my personal problem/ bias but if you could benefit it is good!
 
if i would explain H2 AND L2 in one line:

enter on a two leg pull back to the moving average, which should be steep showing that the trend is strong.

Entering on pullback when the trend is strong is a high probability trade.

entering when the trend is weak, represented by a gentle slope of the moving average, should be done with caution, mostly for scalp, best avoided for risk avrse traders.
the ideal entry does not come often since strong trends do not take place often but it is worth waiting for. trading is a game of patience waiting for opportunities which do not come often:opportunity knocks, temptation leans on the door bell!
 
here in the chart there is an uptrend and then a two legged pull back to the moving average which was not steep.
the two big up bars marked by red arrows represent two attempts by the market to go up which failed.
it was a selling signal which i did
hope this helps explain the concept and, hope it illustrates just how simple, but powerful, this concept is

et.png
 
when the chart looks like this one below,with a very sideways moving average, expect H1H2L1L2 all to fail-these should only be traded in a reasonably strong trend

h2.png
 
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