Futures I Trade Show & Brooks Book

[forrestang 10]

Nice trade, direction and momentum clearly down and a 2 legged pullback would be one of the safest entries according to AB. What is the instrument by the way?

 

Thanks BF, all trades I'll post are ES unless otherwise stated. That was a 5min on ES.

 

Also, as of 9:35CST this morning, on that two legged pullback, that last push down was that a '3 Push?'

 

if it was it would have been another good trade.

[daedalus 10]

One thing i've been confused on with the H2/L2 entries is where the actual entry is?

 

 

Because this is how i've been interpreting it? Or am I supposed to be dragging a sell stop up the pullback outside the lows of each candle?

[BlowFish 10]

Signal is the green bar with the isolated high. It becomes an entry (on stop) one tick beyond the low of that bar.

[forrestang 10]

One thing i've been confused on with the H2/L2 entries is where the actual entry is?

 

 

Because this is how i've been interpreting it? Or am I supposed to be dragging a sell stop up the pullback outside the lows of each candle?

 

As i understand it, you're supposed to do the second thing you mentioned. What you initially did is enter on a FULL 3 bar reversal that forms a pivot.

 

I'm attaching a picture, but it's also in page 2 of that pdf with a description of how brooks does it.

[ACS 10]

The bear trend bar you have marked L2 was the entry bar. The signal bar was the prior bull trend bar and the entry would have been one tick below the low of the signal bar at 929.25. This was not a beginner's trade because the signal bar was a bull instead of a bear and it was away from the EMA, but it was a win.

[monad 10]

forrestang

 

Great effort in compling the pdf files on Al's lectures.

Looks like you are getting the hang of some of the setups.

The book is more like a text book, choke full of great insights of price action garnered over many many years- rare piece of work showing how to keep it simple and learn How To Trade. Even Wyckoff would be proud of it:)

 

keep up the posts.

[monad 10]

The bear trend bar you have marked L2 was the entry bar. The signal bar was the prior bull trend bar and the entry would have been one tick below the low of the signal bar at 929.25. This was not a beginner's trade because the signal bar was a bull instead of a bear and it was away from the EMA, but it was a win.

 

Agreed,

Infact Al states on p294, that price action is of greater importance than EMA and that EMA in the first hour can be misleading, when the market opens far from it.

[daedalus 10]

Thanks for the clarification guys!

[BlowFish 10]

Monad,

 

I found a great deal of benefit in extracting key points and making a bullet list (early in the thread) FT has gone about 3 steps beyond that!! ....the important thing (for me) is going through that process really aids in my understanding.

Edited June 8, 2009 by BlowFish

[ACS 10]

I noticed if you watch the December presentation you can right click on the slides and properties will give the url to download each of them but that doesn't work with the May lecture nor does the source code help. There are so many slides he zips past without comment, it would be great to be able to print them out. Anyone able to figure it out?

 

p.s. nice entry short at 931.25 at 11:26. L2 second test of the EMA and the signal bar was a bear.

[forrestang 10]

 

p.s. nice entry short at 931.25 at 11:26. L2 second test of the EMA and the signal bar was a bear.

 

I saw that one, there are so many.

 

There was another micro-trend break (L1) trade that occurred @ 10:45 for a short entry.

 

Does brooks talk about which trades are the very best in the book in greater detail in efforts to filter down trades? I will be able to read it soon once it arrives.

[monad 10]

ACS,

You can use pause and then use snag it and print.

 

forrestang, infact the last chapter is a gem after 350pages , devoted entirely to the best trades. According to Al "The absolute worst thing to do is to start trading Barb Wire" The second one is trying to trade from 1min chart where the setups look a lot easier especially in the end of day chart but in realtime, it will just go to wipe out the account.

 

Blowfish, it certainly helps to print out some charts and mark the setups, an exercise which Al undertakes on a daily basis similar to what an athlete would do to train for an event.(as Al puts it), as I said, all in all , brilliant effort, not only price action is explained, but how to construct strategies and tactics to trade.

 

The book would not be an easy ready for beginners, though it would certainly put them on the right path. I have studied Wyckoff's original material and that makes it somewhat easier to trawl through Al's work for it is also easier to visualise the volume aspects during the various setups.

Edited June 8, 2009 by monad

[ACS 10]

Here's a real time test. The 10:30 rally broke the bear trendline from the open and then the market sold off in two legs to test the extreme. Will we now see at least a two legged rally up?

[forrestang 10]

Nice ACS!!! ^^^

 

Observations during the day. That last trade required a big stop, but target would be back to balance area.

 

The rest of the chart should be explanatory.

[ACS 10]

I was happy to catch my 11:26 scalp which looked like the best trade of the day to me. Seeing that change in trend in real time was more luck than skill since I usually spot them well after they happen. My goal for now is to follow the recommendations in chapter 15. Don't trade barb wire or if the market is in the middle of the day and in the middle of the day's range. On a strong trend day trade every H/L 2 where the setup bar touches or penetrates the EMA. On a trading range day fade second entries at new highs and lows or wedges with strong reversal bars.

[BlowFish 10]

I...snip...

 

Does brooks talk about which trades are the very best in the book in greater detail in efforts to filter down trades? I will be able to read it soon once it arrives.

 

He does indeed devote a chapter to this. Here's the thing, it seems to me (from my first read through which was a bit of a 'skim') that it's not so much 'type xyz' setup that makes it best but the quality of the individual setup itself. I may have got that wrong though because I do seem to recall he has some setups that are more favourite than others. I'll re-read that chapter a bit more thoroughly and report back.

[rigel 10]

It is modification of Vic Sperandeo 123, 2B reversal type setups and has more stringent conditions ie. Trendline break with a strong bull or bear reversal, followed by a 2 legged move culminating preferably in a wedge 3 pushes on the 2nd leg and then a H2or L2 with the entry bar a Bull or Bear respectively IMO.

[BlowFish 10]

His rules for reversals are absolutely trader vic 123. That occurred to me too Some of his price action stuff share similiarities to 2B's but a bit different. Plus of course there is a whole host of other 'setups' and observations.

[rigel 10]

Another great insight by him is anticipating after trendline breaks or after 2 legged break below a swing low or high, ie. reversal setups.

 

This is extremely useful say after a sharp rally or sell off and then prices getting into a trading range. By drawing different sloping trendlines anchored from the start of the fall or rally to each new swing in the trading range, it is a lot easier to anticipate a reversal as happened yesterday and as it is unfolding today on Ftse and Dax.

 

Al is strictly against using 1min charts, but does recommend 3min in the opening hours, so the entries look much better on 3min as you not only have L2 but also M2S shorts, check it out

Edited June 9, 2009 by rigel

[Gabe2004 10]

Hello

Could someone please post a picture with H/L 1/2 marked?

I watched all of AB's videos, read his articles and the book but I still have a problem figuring out the above.

It seems that sometimes the H's and L's are mixed in the charts posted here and in AB's work.

 

THanks

 

Gabe

[johncw 10]

I noticed if you watch the December presentation you can right click on the slides and properties will give the url to download each of them but that doesn't work with the May lecture nor does the source code help. There are so many slides he zips past without comment, it would be great to be able to print them out. Anyone able to figure it out?

 

p.s. nice entry short at 931.25 at 11:26. L2 second test of the EMA and the signal bar was a bear.

 

Maybe this will help (I think the only one missing is slide 1):

http://www.mediafire.com/file/xtwmeeihmlx/Brooks_slides.zip

[forrestang 10]

just some observations from today.

Edited June 9, 2009 by forrestang

[forrestang 10]

He does indeed devote a chapter to this. Here's the thing, it seems to me (from my first read through which was a bit of a 'skim') that it's not so much 'type xyz' setup that makes it best but the quality of the individual setup itself. I may have got that wrong though because I do seem to recall he has some setups that are more favourite than others. I'll re-read that chapter a bit more thoroughly and report back.

 

I'd love to hear more detail about this.

[BlowFish 10]

I'd love to hear more detail about this.

 

Well as I plan a re-read I'll see if anything leaps out.

[monad 10]

Attached: Trader Vic 123 setups

 

Al Brooks- much better representation in that he incorporates the concept of 2 legged move plus wedge formation to time the entry.

 

BTW in a fast market especially during the opening hours when you see large range breakouts, he does recommend going down to 3min or even 1min to gain entry. p156