my summary or my understanding of Brooks price action

padutrader said:
  • since H2 L2 are setups to enter a trend, when the pull back is finished.....trading these near or at a moving average, is a higher probability trade.

    trading reversals [mtr] when the market is away from the ma, increases the probability of the trade.....and if the reversal trade is during a time when market is in trading range [when the ma is flat or weakly up] then that also increases the probability.

    fading breakouts from a trading range formed around the moving average[enter on a setup] is also a high probability trade since it means that the moving average will be flat.
  • This is why Brooks says most breakouts fail:since market is in a range most of the time, breakouts during that time may be faded
  • but Brooks also says you need a set up.The context is a trading range market but the entry is on a set up.
    So first determine the context and then wait for a set up.....trading only on context equals emotional trading.do not enter randomly.
    • DO NOT trade H2 L2 on a trading range day......

  • on a trading range day fading breakouts from trading ranges formed near or around the ma are high probability trades.
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Thanks Paul,

Once entered trade , what are exit methods.

For example, give examples of stop loss placements and trade management.

I'm currently just using exit when bar above an ema. I just use that cause I kept doubting when to exit intraday.
 
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padutrader said:
what is the difference between a pull back and a trading range?
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You have to define where the signal is occurring, how far from where trend changed? Whereas if trend been going for awhile, there is more risk and less possibility of extended profits. Couple of pullbacks after trend changed most are waiting for these, but deeper into the trend, I would have changes of amount risk and go to breakeven stops faster.

Trading ranges can occur if highest high bar has huge range and then bars fit inside of this high bars' range, should never do breakouts, more along the lines of finding support and buying there and risk is thereby much lower. Having 2/3 equal/near equal lows if high bar is not huge range is enough to buy on if trend has experienced longer part of a swing. IMHO
 
padutrader said:
i am posting a lot on Brooks because, IMO, he is the only teacher who talks about trading in a realistic way and about markets in a totally new way.
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I'm curious if he's ever commented on how universal his method is - did he say it can be applied to forex? Does he use volume in his analysis at all? Not very familiar with his stuff.
 
ironchef said:
I never read his book. Should I?
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I hope Padu can make this work so he won't need to find a rich widow lol.

I read the book... to me it's still tea leaves reading lol... but it does give you some ideas even if you don't do short term.

to me trading is so much easier once the news events are considered.
 
ironchef said:
I never read his book. Should I?
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DO NOT READ HIS BOOKS
but his video courses are dirt cheap.....maybe the cost of a good dinner in a high class American restaurant.....i say maybe because i have never been to America.....
i read his book 12 years ago.....
but if want free then you tube is the place to search.
i did just that...because after paying for a 200 books over a 20 years i got reluctant to pay for anything
 
dozu888 said:
I hope Padu can make this work so he won't need to find a rich widow lol.
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i have made nothing work in my life because i always am looking to make a killing.
that is because i have always had a small amount of income so what is the point of making a little money
so i am one of the lucky few
 
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