not fooled by random market and by technical analysis

Brooks clearly says that setups are necessary to control risk and his purpose was to reduce risk with tight stops.
I have a problem with that: you cannot buy the low and sell the high so putting a tight stop will certainly trigger it.
so i put a wide stop....increase the probability and risk and reduce reward.
i am happy with that because it agrees with my idea that you cannot buy the low and sell the high
 
the key to trading is to wait, till what you want to do, makes sense.

Brooks has mentioned this many times, though may not be, in those exact same words.
 
on any chart in any particular time frame there are many many trends .......you must identify as many as you can.
then and only then will you know whether to buy or sell ......meaning you must know which trend you are trading if not you will never know when to take profit.
 
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what i am trying to say that a trader can only make a profit if the market moves in his favor and once a market moves in a particular direction,there is trend.
so all traders have to be trend traders but some are trading very short term trends while some others may be trading long term trends.
you must know which trend you are trading and i think some are confused about this and taht may lead to random trading results.
 
the important thing in identifying H2/L2 which lead to large movements is to trade only those that take place after a break of a trend line which is not steep. this is because in these cases the H2 is also a BO PB.
IF A TREND LINE CAN BE DRAWN and if that line breaks then a retest of that trend line will take place....completing the second leg....sometimes a second retest takes place which completes the third leg and you get a wedge.
a1.png
 
both the expanding triangles are the second leg and so are corrective moves and a expanding triangle is a reversal pattern so it may be expected to reverse the pull back
w.png
 
any strong momentum move is tested. this test may retrace the entire momentum move.
when it does not, the test may also be a time correction instead of price: meaning it will spend more time, sometimes a lot more time, than the momentum move.
Brooks does not talk about this.
not many talk about this
 
padutrader said:
any strong momentum move is tested. this test may retrace the entire momentum move.
when it does not, the test may also be a time correction instead of price: meaning it will spend more time, sometimes a lot more time, than the momentum move.
Brooks does not talk about this.
not many talk about this
More...

Who is Brooks?
 
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