Tribute to Brooks

Blitzjoker said:
This often means trading pullbacks
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you have to recognise a trend ending which is the most difficult thing to do.

a pullback is a trend and you have to recognise when it ends to get in the larger trends.

i think you should see the market as colllection of trends rather than trend and counter trend..

some deep corrections are definitely tradeable.

a 1H pullback is a trend in 5 min.

where you have to be careful with 5 min and Brooks is that 5 min trades are much shorter....you get more trades and if you take them all you end up overtrading.

now if you are trading let us say a daily chart you may make 4-5 trades a month.

the only reason you shift to 5 min like brooks did, is to make more trades.

making more trades may be very dangerous for a new trader because he cannot judge a good entry or a good set up from a bad one.

over trading is one of the most common reasons for failure: not knowing how to differentiate a bad set up from a good one. this takes a lot of experience.

small wonder most traders wonder what the fuck brooks is talking about
 
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Blitzjoker said:
spent some time on the final chapter about his favoured set-ups.
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be careful here

this set up road will only lead to a dead end....with emphasis on 'dead'.



if you cannot know the direction or cannot read the market conditions and focus on set ups alone ,you will join all the Brooks' haters.
 
Blitzjoker said:
I finished reading Brooks book for the second time today, and spent some time on the final chapter about his favoured set-ups.
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i suggest you take one of his chapters....like trendlines or break outs or trends and then keep reading each page a number of times....and stay reading that one chapter for a long time.

you will find there is a lot of overlap between chapters.

for in stance between trend and pull backs: a pull back is actually a trend; and to know when a pull back ends you have to know where a trend ends.

as far as price action goes there is no difference between trend and pull back !!!!
 
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why is this journal helping me.?

because it is forcing me to find reasons to justify the position i may take....rather than just think: 'oh it should go down now'
 
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