trend development or trend cycle ,as brooks calls it, is critical: it is necessary to understand where the market is wrt to trend cycle.
once there is a pb, which brooks defines as as one bar going [ in a bull trend ] above a high of a bar, then the market starts channeling
if this channel is tight then in a bull you can only buy.
once it gets wide you can trade both ways.
once it gets wide, traders will buy all strong bear bars and sell all strong bull bars.
if that is done you cannot put a tight stop. i use a catastrophic stop. since we are in a range or channel it is unlikely that there will be follow through and any follow through will be a 2-5 weak bars. ideal for scaling in.
if the follow through is strong-the unlikely or low probability event-then it means the market is no longer in the channel and you close and reverse.
this is simple stuff.
all it takes is a little understanding of market , confidence in your knowledge commitment ....and a decade or two of live practice.
it is trading the market, reading the market, without having an opinion, of where the market should go.
better lose your opinion than your money.
you do need a sprinkling of context to spice up things:that is provided by the trend cycle
i do not wait for setups .........
