Futures I Trade Show & Brooks Book

[bakrob99 11]

  thalestrader said:

You could have made your above post both interesting and useful had you included at least a description of how a Brooks trader would have approached the EURJPY, and maybe even some charts. I would have greatly enjoyed that post.

 

As it is, it just comes across as being mean spirited.

Thales

 

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

[thalestrader 14]

  bakrob99 said:

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

 

Ok, no problem. If the mods want to delete these posts it is fine with me.

 

Best Wishes,

 

Thales

[jolee 10]

  davewolfs said:

In this example, which bars would be the H2 and H3 between the H1 and H4?

 

I'll try .... I see...

[ACS 10]

  jolee said:

I'll try .... I see...

[ATTACH]12077[/ATTACH]

 

When I listen to the presentation, Dr. Brooks seems to count them so that your blue H1 is H2 and your second blue H2 is H3, he does not seem to count the others you have marked. Knowing which colored candles are countable H/Ls seems one of the trickier parts of his methodology although I think looking at a smaller time scale would make the valid ones more apparent.

[davewolfs 10]

  jolee said:

I'll try .... I see...

[ATTACH]12077[/ATTACH]

 

Thanks for responding. The bar that you have labeled as H3 is an up bar but does not have a higher high then the previous bar, is this still considered an H type bar?

[mbfromla 10]

Hi guys,, here are my today's trades,, these are not an analysis ,,instead trades that i took. Not all entries are perfect, and was definately a very difficult market to trade.

I didn't trade after Lunch time had to take a napster.

 

I was thinking alot about max P/L, some suggested having max loss of 3 points and max profit of 2 points. I think it's more reasonable to go for 3 point max profit and 3 point max loss.

That way if you trade 10 contracts and have Weekly P/L

1. No loosing days will make $7500 minus comissions.

2. One loosing days Will make $4500 minus comissions.

3. Two loosing days Will make $1500 minus comissions.

 

Having one loosing day a week is reasonable, 2 is acceptable as well.

It will be easyer to acheave if you let half ride beyond 4 tick scalp.

 

Any comments or suggestions will be apreciated. My email is job858@yahoo.com

[szubaark 10]

3 trades.. +3 I stopped after this so i woudnt give it back.

All Targets Reached withis first hour

 

Brutal Chop at day high, glad i stayed away from it.

[thalestrader 14]

  mbfromla said:

I was thinking alot about max P/L, some suggested having max loss of 3 points and max profit of 2 points. I think it's more reasonable to go for 3 point max profit and 3 point max loss.

That way if you trade 10 contracts and have Weekly P/L

1. No loosing days will make $7500 minus comissions.

2. One loosing days Will make $4500 minus comissions.

3. Two loosing days Will make $1500 minus comissions.

 

I would suggest that such thinking usually (if not always) leads to disappointment, if not ruin.

 

Focus on learning to trade price action, focus on risk/reward (which means focus on position size relative to account size relative to the risk of the trade if you are stopped for the maximum loss), and the profits will take care of themselves.

 

 

I wish you well,

 

Thales

[rangerdoc 13]

  davewolfs said:

Thanks for responding. The bar that you have labeled as H3 is an up bar but does not have a higher high then the previous bar, is this still considered an H type bar?

 

Yes, because the previous bear bar counts as a pullback. This is explained in the first webinar video, "Short-Term Emini Strategies That Work". A Link is posted earlier in this thread.

[rangerdoc 13]

  thalestrader said:

I would suggest that such thinking usually (if not always) leads to disappointment, if not ruin.

 

Focus on learning to trade price action, focus on risk/reward (which means focus on position size relative to account size relative to the risk of the trade if you are stopped for the maximum loss), and the profits will take care of themselves.

 

 

I wish you well,

 

Thales

 

This is extremely important advice. Focus on trading well, not on making money.

 

A surgeon isn't thinking about the new golf clubs he's gonna buy with the money you're paying him while he's in the operating room. A pro athlete isn't thinking about the money he's making while on the field. He's focusing on playing well. And I sure as hell wouldn't hire anyone who was thinking about his paycheck all day long instead of focusing on the task at hand.

[szubaark 10]

Highlighter area..I had Short there real time i posted

 

3 Pushes Up AGAIN (#2 Push was possible DT Bear Flag) but it DB with previous swing low for another push up #3... IF we bounced AGAIN here at EMA we would re-test day highs most likely

 

As you trade this style you will realize there are a lot of naunces to this.

At the end you just trying to make it your OWN Style.

[Guest Maletor]

Highlighted area was tough for me to read.

 

And yes, the point about style is something I'm discovering too.

 

But, you have to remember that the pros are the people who are making money consistently. Therefore, they are all together buying low and selling high.

 

So you can take whichever way you want to get a read, but ultimately if you're not buying low and selling high, that style is not working.

Edited July 11, 2009 by Maletor

[BlowFish 10]

  Maletor said:

 

But, you have to remember that the pros are the people who are making money consistently. Therefore, they are all together buying low and selling high.

 

 

This is a belief that many hold, beliefs are powerful as they shape your thinking in a fundamental way. I personally happen to believe that it happens to be one that is not correct. If you look up the commitment of traders report it shows by far the largest participants (in futures markets at least) are 'commercials' by definition these are hedgers so not profit motivated in the traditional sense.

 

Even if you don't buy into that, if you believe that 'the pros' you speak of are conducting the majority of the volume then as futures are a zero sum game (excluding transaction costs) there must be other loosing 'pros' on the other side of their trades.

 

I also think the buy low sell high paradigm is not that useful (again only imho) but that is too large a topic to go into here. To bring things back on track Brookes uses the paradigm of 'locked in' and locked out' traders to explain short term price movement,

[thalestrader 14]

  BlowFish said:

I also think the buy low sell high paradigm is not that useful

 

My experience has been that it is much easier and profitable to "buy high and sell higher" or to "sell low and buy lower."

 

Now back to Brooks ...

[Gabe2004 10]

  thalestrader said:

My experience has been that it is much easier and profitable to "buy high and sell higher" or to "sell low and buy lower."

 

Now back to Brooks ...

 

If you think of it Brooks advocates the same thing.

He says that one should wait for a definite break of a trend to place trades agains the previous trend direction which means that he is not always buying low and selling high or selling high and selling low.

 

It seems much safer to let some one else test the water first.

Also one of the most important things I got out of the book was that Brooks says that trends will last longer than we anticipate.

The above will explain why so many fail at picking tops ("surely it went high/low enough" )

[rangerdoc 13]

Like Brooks, Linda Rachke is always talking about looking for places where traders are trapped and taking the other side when they bail. Raschke is very similar to Brooks, except she tends to target swings, while Brooks is a pure scalper. Raschke is also very quick to credit Wyckoff & Taylor.

 

I think "Buy low, sell high" does a great disservice to many. It can work great for reversals. But you'll get your ass handed to you in a trending market. Echoing what thalestrader said, I'm a "buy strength, sell weakness" guy. Even at bottoms, I'm looking for a show of strength at support before I go long & I sell at the first sign of weakness near resistance. So trend trading can consist of buying high & selling low.

[Guest Maletor]

These are not trades I placed real time, just doing some analysis of days past.

 

6/18

1 - H1

2 - H2, M2B

3 - DB, H2 variant, EMA Gap

4 - 3 pushes up, double top lower high pullback after trendline break, breakout pullback to trendline

5 - L4, 2 legs up to test days extreme (couldn't even do that so made HnS right shoulder), reversal bar.

 

6/19

First 90 min. chop had an H2 then an L2 that worked out. Not exactly sure how to play this. Just throwing down sell stops at the resistance and buy stops at support whenever you see an inside bar or some other setup doesn't really seem productive. What am I missing here?

Is the correct play to in fact sell the L2 at 1 and buy the unmarked inside bull trend bar that happened around 11AM EST, but then reverse on its failure?

 

I must be missing something here.

 

1 - Double top, L2 (But how can I say that's a valid entry without saying the inside bar 8 or so bars later was not?)

 

2 - Breakout pullback to the prior LOD/ false double bottom, L1

 

3 - L4, M2s, (L2 signal was a doji so sellers waited)

 

4 - Wedge, 2nd try to reverse LOD, trend bar.

[dbandas 10]

Thank you.

 

After the HH marked bar around 7:30, why isn't the second candle after that the H1, and the second candle after that the H2?

 

Did you just pay more attention to the fact that it's just the same pullback with a little wick making it higher than the previous candle?

 

I love your book. Thanks for all of the work.

[JimmyJohn 10]

I have just finished reading the first several chapters of the book. It has so much information! I remember in the first chapter he said one of the best ways to learn price action is to print off several charts every night and mark on them.

 

I printed off Friday's NQ session. I know there are some things I can label on the chart but right now it looks like a forgein language to me.

 

It would be awesome if a few people marked up this chart where I can see "the right answer".

[forrestang 10]

  JimmyJohn said:

I have just finished reading the first several chapters of the book. It has so much information! I remember in the first chapter he said one of the best ways to learn price action is to print off several charts every night and mark on them.

 

I printed off Friday's NQ session. I know there are some things I can label on the chart but right now it looks like a forgein language to me.

 

It would be awesome if a few people marked up this chart where I can see "the right answer".

 

What are you looking to see? The High/Low Count? Entries, 3 Pushes, what to look for for trend change, M2S/M2B?

 

More specifics please. Might help if we knew what you were looking to see? Did you mark it up at all yet?

[ACS 10]

  JimmyJohn said:

I have just finished reading the first several chapters of the book. It has so much information! I remember in the first chapter he said one of the best ways to learn price action is to print off several charts every night and mark on them.

 

I printed off Friday's NQ session. I know there are some things I can label on the chart but right now it looks like a forgein language to me.

 

It would be awesome if a few people marked up this chart where I can see "the right answer".

 

If you want to be spoon fed answers then I think you have come to the wrong place especially since there is no "right answer"; everyone here would likely mark up that chart at least a little differently. If you want to do a little work and mark the chart up yourself and submit it here for feedback than I think you will possibly learn something.

[Guest Maletor]

Granted I don't follow the NQ, I only looked at it for fifteen minutes, and I'm certainly no expert, nothing really pops out at me as a "best trade".

[szubaark 10]

Most of us here trade ES.

[Guest Maletor]

This same post can be found at the wonderful Big Mike Trading forums.

 

ES

+4

 

1 - False double bottom, heavy downward momentum, break of EMA

 

2 - Breakout pullback of high of day, H2. Didn't take because I was away.

 

Came back right as the high of the rally was being put in. Materialized into barb wire and was just a chop fest the rest of the day. No way could I play that.

 

Even the 3 pushes up that I was ready to short around 2:30 turned into barb wire.

 

Today's action was strength in disguise.

[davewolfs 10]

I thought this was a good example, of how you need to be willing to get back in the trade even if things don't go your way the first try. As you can see this second entry was successful. After getting stopped out on my H1, I again re-entered and the market rallied shortly after.

 

In hindsight, I probably should have bought at the H2 to begin with

 

Edited July 13, 2009 by davewolfs