bakrob99

Your chart and trade locations look good to me. The bottom Long setup did not show a Trendline break which Brooks likes to see ... but this on this OEX range day those entries would have worked nicely.

That won't work because Marketposition does not track previous values. But the following would: variable: MP(0); MP=Marketposition; if MP<>MP[1] then ... Bakrob

AndyPap the "SinceENtry" only works as long as you are in a position. After the position is closed - there is no "sinceEntry" Use TradesToday(date) to keep track of when you have entered a position. Bakrob

I attended the Webinar held by Murrey Math last night. It is fascinating in its approach. Intersting stuf to put the above ELD file on the VIX and look for changes in direction keyed off the Murrey numbers every 4 days. In the attached file on a daily basis the VIX closed above the recent High of the lowest bar indicating strength. This means its safe to SHORT the S&P on the Close of trading that day. Doing so would have provided very little heat and given an MFE of around 25 S&P pts or $1250 per emini contract. Four (trading) days later ... on July 9th the VIX closed strongly below the Low of the Highest Bar indicating weakness. A LONG entry on tghe close of trading on that day would have resulted in an entry on the S&P at around 880 which has so far had an MFE of over 50 PTS or $2500 per contract. Perhaps this could be better played with Options? Looking at the Murrey Numbers ... the VIX bounced off the 0/8 harmonic and went to the 5/8 harmonic as expected. ENtries at these places would have been even better. I do NOT know what this stuff is ... but I am watching it.

I was refering to your chart where you stated that you would no longer post charts because it didn't do anything for you - and I was just commenting on that. I would welcome your future charts and posts if you care to continue. If not, that's okay too. I am glad it works for you. I sometimes enter on a stop when the risk of immediate entry seems too high or I want confirmation of the trend. But I prefer to buy lower on limits (or sell higher) If someone is challenging a specific method, i would apreciate if that person would share their monthly P/L statements, or even statements in a sim account. I am not "challenging" any method. Just stating a personal preference that keeps me from trading using the Brooks method. If any of us was making alot of money trading, belive me, we wouldn't be here. Look at the pivot lines or S/R today. Where would you fade? When most guys in the room made 3 plus points trading price action and were done after the first 30 min. I am not sure why you a stating this except it seems you are still o your hourney of discovery and I wish you well. By the way - today was a trend day up. Stay in your position and add on pullback. Exit at close or near to it. NO SHORTS TODAY. Learn to read market internals and GAPS that open above all resistance.

Jolee - you're right. Sorry - it was a post from MBFROMIA that I read.

The reality is that Summer Trading markets are choppy. Fewer trends. Brooks makes it very clear that you will get killed taking breakout entries on Chop Highs or lows. THat's why he doesnt trqade dojis. And a bar is eithe a TREND BAR or a DOJI BAR according to Brooks. Better for me to get into a trend and STAY IN moving stops behind Swings. I prefer to look at Fib Retracements backed up by the Peak Volume Price and a 20EMA or 30WMA. Then I will use a Breakout Entry method to add to a position or even to initiate a position. I will also add to a position if a PVP change ocurs with my position. I will exit at Fib Extension targets or Tick Extremes.

To JoLee, Thanks for posting the charts you have. I actually disagree with your statement that publicly posting them has no benefit for you. You do gain from the actual display of the charts and the work involved - and the responsiblity to do it. However, I can understand your frustration because not many have been contributing to the discussion (myself included). The main reason why I haven't is because I DO NOT LIKE the Brooks method. First of all, I hate giving up the height of the bar of potential profit rather than fading from higher up against some S&R line. I just do not like Stop Market entries. Secondly, this is definitely a scalping method, which may be useful for summer time trading - but I prefer to try to catch a larger intraday move and trade less frequently. Finally, I prefer to add to a winning position and start with only 1 or 2 contracts... which is opposite to the MM suggested by Brooks. That said - I have read the book (it is not a well written book by any means) and am happy I bought it and I am sure that I will refer to it from time to time in my trading future. Good luck with your trading Bakrob

If you are asking me, here is what I saw yesterday. My short entry was at 878.50 at 9:47 looking to hold to Gap Fill 4 pts lower. The first time I "thought" of going Long was at AFTER an Inside Bar formed and signalled an alert to me which was the first Green Candle since the breakdown. This was on a 2097 Tick Chart. I watched T&S and on the pullback to 872.00 considered pulling the trigger long with a 5 tick stop becaase the RR was so tempting. But I waited for confirmation on the Minor TL break which happened on the 5M chart at 10:15 with the Long entry at 873.50 on a Stop Limit. The first possible place to Add a contract(s) was at a breakthrough of the PVP at 878.50 at 10:38 EST. The next add point was 883.00 at 11:30. The next add point was 889.00 at 12:45. The next add point was 892.00 at 14:58 The target was the 50% retracement at 896.75 which has been on my charts since last Friday with the High at July 1st and the Low at July 8th. Obviously, after the market filled the gap the internals confirmed the move and trend day up which was in agreement with the Meridith Whitney news release suggesting the financials had a 15% pop coming which fueled this move. Good trading. PS. I forgot to add that I also had the 873.50-875 fib retracement zone on my charts which i wanted to see if the market bounced from ... which of course it did. This was drawn from the Overnight High pre market to the Low on Friday and "suggested" to me that if the gap filled ... then the market could find support there near Friday's Settlement. Also - this was a classic Drive Test Trend Day in MP Parlance.

What was the disguise? Once the gap filled, the market roared higher - Internals were bullish and a trend day with the market closing on its highs unfolded. NO REASON TO SHORT. Add to positions and hold trailing stops below Swing Lows. Exit at close.

Don't get into a trade in the first place without having a target in mind. Then trail your stop behind the Swing Highs/Lows after you are 50% towards your target.

Could you elaborate a little bit?

That is why I deleted it after I had posted because as I read it, it came across not in the way I meant it to be . I apologize for any offence. I was going to take some time to post additional input - but I got in a trade and had to manage it so ... I just deleted the post. You had obviously read it before my deletion came across. Sorry. Bakrob

Brooks is a scalper ... but don't forget he says that he gets 2 or 3 of his trades to run each day (12 + ticks) ... after he moves his stop to BE after 4 ticks of profit on the first part. (I think he trades quite a few contracts ... so for him 1 point actually is quite a bit of dough ... he promotes trading SIZE rather to make money rather than having to get a large number of points)

please delete this post

Perhaps RalphX (along with Every new trader) should first learn how to use the forum SEARCH feature.

Maletor - which "ROOM" are you talking about?

That first L1 trade was not one that Brooks would have taken according to his book. My reading suggests that he would have waited and not traded that doji bar. It was also too close to the EMA. He would have entered after the next down bar on a stop; your "nailbiter" trade. Remember - you were above the EMA but not by much. He wants to see signs of selling coming in. Thanks for posting.

"The point here is that pretend there is a gap down to start the day and it is sizable --- then say the market takes out the high of the opening 30-minute bar. It is not quite unlikely that the market will close FAR away from the previous close. I stated this a few months ago and since then, we have new data which supports that concept." Could you please rephrase the highlighted words (It is not quite unlikely). The double negative has me a bit confused.

THales - I can not find the chart you referenced. Could you re post please?

Trade the Currency Futures and you won't have this problem. Your bucket shop will move the market to take out your hard stop unless it is really wide.

If you had entered all those bars you identified above using a BUY STOP 1 Tick above the high you would have avoided the stop out. Your entry method can also be helpful when trading these bars. The other thing I would add is stick to trading these bars on higher timeframes as they are more evident to all traders. 5, 9 or 15 Minute charts as an example.

I believe that what you are seeing are the small lot traders closing out their losing positions from the long positions they took earlier. It doesn't mean they are idiots. It means they are being stopped out and controlling their losses.

It is true that you can set TS to go to the Market after XX seconds if the limit is not filled. But my experience with this has been to have a very high slippage becuase you cannot tell the TS engine to go to market only if the price is At Your Limit Price. If you specify say, 10 seconds... the market can be quite a distance away from your desired entry. So this is not an option for me. Using limit orders, I find that the best trades (furthest in distance and profit) are the ones that tend not to be filled without price penetrating the limit price. Consequently, in backtesting any system you must use market orders at your price to get accurate results and put in one tick of slippage on the RT.

Can you post an example of what this would look like? Thanks