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

A friend sent this chart with the message:I am trying to figure out High 1 and High 2. Am I getting them right? My answer may help you.
The high 1 you marked is correct if you take the exact definition but not if you take the spirit of the definition. you see never go counter trend until there is some sign of counter trend strength. the bar you marked 1 had some strength but failed miserable and was in fact a failed high 1 or low 1.a low 1 is usually a failed high 1. so counting that bar as a sign of strength is not adviced : got it?


and there was no counter trend strength [because there was no trend line break] and if there is no counter trend strength you do not look for a set up to take [ the counter trend] trade. the H2 is not a magic incantation to make the market go up it IS ONLY A SETUP and you only even look for a set up when the context is correct

so the set up you took, was actually a H1 not H2,and you do NOT take H1 setup trade after 8 NON BULLISH BARS. you only take H1 setup if the market is shooting up and the bar you marked 1 is actually a low 1 trade, which was a good set up for short but the context [the huge up bar to the left] meant that it was not a swing

not surprisingly the market tested the low and your stop as well

the bar which tested the low, a reversal bar, also completed the test of the low of the huge up bar and NOW the context was correct to look for an entry setup, so that you may manage the trade and you got the gift of H2

photo_2018-07-06_19-42-45.jpg
 
Last edited:
padutrader said:
It took me almost 7 years to understand the simple concept of H2 L2 H1 L1 etc. critical to understanding this concept is the role the trendline plays.
i am now making consistently good trades using this simple but powerful concept. what i really like is that this affords a consistent place to put the stop-which if you read the situation correctly does not trigger in 90% of the time.
As Al says trading need not be complicated.
that said because price action takes place on many time frames you need to have deeper understanding to make consistent trades which is why it took me over 7 years to understand perfectly so that consistently good trades are made.
i stay in hyderabad India and anybody who can visit me will recieve training on how to make good trades using this method.
for those who cannot visit me please do make the effort to understand this method-it is well worth your while.
ALSO LET ME STRESS THAT Al BROOKS HAS DESCRIBED A WONDERFUL SIMPLE POWERFUL STRATEGY: HOWEVER YOU MUST UNDERSTAND THAT IT'S SIMPLICITY IS COMPLICATED BECAUSE MARKET OPERATES ON DIFFERENT TIME FRAMES.so it will need a little persistence to benefit.
Al brooks is a great trader; only those who do not take pains to learn and understand his methods describe him as a bastard or worse
More...

@padutrader sir, I live in Bangalore. Please let me know how I can contact you.
 
You must log in or register to reply here.
Back
Top