Where are the first and second entries in your examples?
WHAT IS A THIRD ENTRY?
- Thread starter Darc
- Start date
Tranlation: 1st try fuck, damn it, 2nd try, omg, no, this can't be happening, 3rd entry, oh yes I got it right by chance, soon I can buy this new boat. Stop out soon after: fuck damn it no way, last step: fund the account once again.
That's how the typical retailer experiences trading time and time again, yet never learns.
That's how the typical retailer experiences trading time and time again, yet never learns.
%%
COULD work well.
I would not try that with single stocks LOL.
A koala bear is not really a bear+ has four legs LOL
It looks like a bear, but a real bear is much more bloody , powerful + has bear teeth
since you mentioned me.
a third entry is also widely called a wedge.
second entries have a higher probability than first but that does not mean it cannot fail.ANY ATTEMPT OR ENTRY CAN FAIL.
now when you say ENTRY what are you entering into.
you are entering, into what you hope, is trend resumption. THIS IS IMPORTANT.
so first requirement is that there MUST be a trend.
if the market is in a pull back, then the market will make various attempts to resume the trend.
first entry is the first attempt to resume the trend. second is the second attempt. and so on .
According to Brooks if the market makes 4 attempts to resume the trend and fails then he says it is not a pull back that is happening but something else. this is his opinion but i see no reason why the market cannot succeed at the 20 th attempt to resume the trend.
I HOPE THIS HELPS
if you have any further question i will try to explain that too.
what i cannot or will not do, is give chart examples to explain this. that will take too much time .
because charts can get incredibly complex and sometimes get, out right obtuse or incomprehensible.
at such time ,you can try to figure out the market ,as Brooks says you must do, or you can do what i do: which is drink beer watch Netflix and wait for markets to be 'normal' again.
but you can google it and get the simpler chart examples.
you are right because they have no clue of the CONTEXT in which all these entries are taking place.
context is literally the elephant in the room and he is hiding in plain sight but many people are not looking for him
they just see the entries and think great!!!! how easy money.
and then call Brooks a fraud : that is default. it has become tradition and custom to do that
Always look for two legs in a pull back or range.
not in a trend.
do not quote Brooks without stating the associated context in which it was said.
what are you entering into?
you have to determine context to know that and make sense of why the hell you would want to enter into a second or third entry.
no idiot says, that if you want to make money, you enter into a second entry or a tenth entry!!!!
there can be 100 hundred entries that fail. that is the cost of trading and doing business and that is why you put stops or be perfect with your context read of the market
There was no Context. Its number 34 of Brooks Trading Guidelines in its entirety, page 383
Marking up Darc's chart,. where I growed up we'd call these formations a stretch-M and stretch W, and enter at the points of the star...
The reasoning was that the formation of a W or M would be a reflection of range-bound action, whereas the stretch would indicate a new short-term trend as the secondary DT or DB on the opposite side of the original DB or DT would fail.
Those yellow circles were not considered breakouts, and needed the stretch as confirmation. I messed with that pattern in the past and had some success with it on unirenkos, but like everything in TA it is open to interpretative skill and previous PA leading up to what formed it in the first place.
The reasoning was that the formation of a W or M would be a reflection of range-bound action, whereas the stretch would indicate a new short-term trend as the secondary DT or DB on the opposite side of the original DB or DT would fail.
Those yellow circles were not considered breakouts, and needed the stretch as confirmation. I messed with that pattern in the past and had some success with it on unirenkos, but like everything in TA it is open to interpretative skill and previous PA leading up to what formed it in the first place.