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Al Brooks - How to Trade Price Action > Trading the Open > Flashcards

Trading the Open Flashcards

1
Q

No matter how strong an open is what are the chances there will be a minor reversal and/or a major reversal?

A

No matter how strong a BO is on the Open there is an 80% chance there will be a Minor Reversal

and a 50% chance that there will be a MAJOR Reversal

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2
Q

3 Parts to the Day

A

3 Parts to the Day

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3
Q

Volume really is not important in the markets today

It doesn’t matter, TRADE WHAT IS RIGHT INFRONT of YOU

A

Volume really is not important in the markets today

It doesn’t matter, TRADE WHAT IS RIGHT INFRONT of YOU

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4
Q

Market Cycle = BO, CHANNEL and TR

There are only three things the market can do

  1. Be in a BO
  2. Be in a Channel
  3. Be in a TR
A

Market Cycle = BO, CHANNEL and TR

There are only three things the market can do

  1. Be in a BO
  2. Be in a Channel
  3. Be in a TR
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5
Q

(90% of the the trading days have at least to types of price action, traders are constantly looking for evidence of a transition from one cycle to another)

(10% of days are Strong Trend days)

A

(90% of the the trading days have at least to types of price action, traders are constantly looking for evidence of a transition from one cycle to another)

(10% of days are Strong Trend days)

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6
Q

On average usually how many swings are there in a Trading Day?

A

There is often 3 Swings in a Day

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7
Q

BOs, Channels, TRs all need to be traded differently

Be aware when one changes into another

Some days there is only 1 type of price action

A

BOs, Channels, TRs all need to be traded differently

Be aware when one changes into another

Some days there is only 1 type of price action

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8
Q

(No Opening Range on this Chart) Trend from the Open Bull Trend

and a Parabolic Wedge Top that reversed and formed the HIGH of the day

A

(No Opening Range on this Chart) Trend from the Open Bull Trend

and a Parabolic Wedge Top that reversed and formed the HIGH of the day

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9
Q

(Opening Range on this Chart) Tight TR Open for a couple of hours

Bulls bought the reversal Up and sold the reversal Down

A

(Opening Range on this Chart) Tight TR Open for a couple of hours

Bulls bought the reversal Up and sold the reversal Down

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10
Q

(Opening Range on this Chart) Market went sideways on the Open for several hours

Traders look to Trade Reversals buying Failed BOs near the bottom and buying HLs, selling DTs with reversals down

A

(Opening Range on this Chart) Market went sideways on the Open for several hours

Traders look to Trade Reversals buying Failed BOs near the bottom and buying HLs, selling DTs with reversals down

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11
Q

(Opening Range on this Chart) Gap Up with a DB the Bulls got a small Rally but it did not last long

A

(Opening Range on this Chart) Gap Up with a DB the Bulls got a small Rally but it did not last long

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12
Q

(Opening Range on this Chart) Bear Swing down from the Open Range

A

(Opening Range on this Chart) Bear Swing down from the Open Range

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13
Q

How many parts to the trading day do Traders Conclude that there is?

A

Traders conclude that there are 3 parts to the day, therefore they break them down into 3rds (Thirds)

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14
Q

The Open, what is it?…

A

The Open, what is it?…

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15
Q

Opening Reversals

In the first hour or two and sometimes in the very first minute of the day the market begins a Swing Trade and they’re SETUPS that often tell Traders a Swing Trade is about to being

A

Opening Reversals

In the first hour or two and sometimes in the very first minute of the day the market begins a Swing Trade and they’re SETUPS that often tell Traders a Swing Trade is about to being

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16
Q

Most days on the Open have some kind of BO before too long

Sometimes it is right on the Open

A

Most days on the Open have some kind of BO before too long

Sometimes it is right on the Open

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17
Q

No matter how strong a BO is on the Open there is an 80% chance there will be a Minor Reversal

and a 50% chance that there will be a MAJOR Reversal

A

No matter how strong a BO is on the Open there is an 80% chance there will be a Minor Reversal

and a 50% chance that there will be a MAJOR Reversal

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18
Q

Big Gap Down = 4 Common Outcomes

i) DT near EMA
ii) Wedge Top near EMA
iii) Double Bottom
iv) Wedge Bottom (Nested wedge, micro db)

*80% of days will have something like this if the market has a big Gap Down & only 20% of the time the Gap down will continue to Selloff to the DS

*In fact even if there is no Gap at ALL 80% of the time chances are I will get one of these patterns

A

Big Gap Down = 4 Common Outcomes

i) DT near EMA
ii) Wedge Top near EMA
iii) Double Bottom
iv) Wedge Bottom (Nested wedge, micro db)

*80% of days will have something like this if the market has a big Gap Down & only 20% of the time the Gap down will continue to Selloff to the DS

*In fact even if there is no Gap at ALL 80% of the time chances are I will get one of these patterns

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19
Q

Big Gap Up = 4 Common Outcomes

i) DB near EMA
ii) Wedge Bottom near EMA
iii) Double Top
iv) Wedge Top

*Remember 80% of the time on any open I will get at least a minor reversal and 50% of the time I will get Major reversal even if the initial move is very strong

A

Big Gap Up = 4 Common Outcomes

i) DB near EMA
ii) Wedge Bottom near EMA
iii) Double Top
iv) Wedge Top

*Remember 80% of the time on any open I will get at least a minor reversal and 50% of the time I will get Major reversal even if the initial move is very strong

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20
Q

VERY IMPORTANT

ON THE OPEN NO MATTER HOW STRONG THE SELLOFF OR NO MATTER HOW STRONG THE RALLY, THERE IS A 50% CHANCE OF A REVERSAL… AGAIN NO MATTER HOW STRONG THE OPEN IS!

So DO NOT get fooled

A

VERY IMPORTANT

ON THE OPEN NO MATTER HOW STRONG THE SELLOFF OR NO MATTER HOW STRONG THE RALLY, THERE IS A 50% CHANCE OF A REVERSAL… AGAIN NO MATTER HOW STRONG THE OPEN IS!

So DO NOT get fooled

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21
Q

Opening Reversal - Early Reversal at Support or Resistance

A

Opening Reversal - Early Reversal at Support or Resistance

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22
Q

Big Failed Bear BO = TR More likely than a Bull Trend

If initial sell off is 25 - 50% of average range, the often get a big bull trend after reversal (Rally went far above)

If initial sell off is 50 - 100% of average range, then usually get a TR Day, even if big rally. Sometimes get a huge bull trend(not on this chart though)

A

Big Failed Bear BO = TR More likely than a Bull Trend

If initial sell off is 25 - 50% of average range, the often get a big bull trend after reversal (Rally went far above)

If initial sell off is 50 - 100% of average range, then usually get a TR Day, even if big rally. Sometimes get a huge bull trend(not on this chart though)

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23
Q

By the close of Bar 18 there is a 90% chance we have seen either the high or low of the day

A

By the close of Bar 18 there is a 90% chance we have seen either the high or low of the day

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24
Q

Big Failed Bull BO = TR More likely than a Bear Trend

If initial rally is 25 - 50% of average range, the often get a big bear trend after reversal (Selloff fell below open)

If initial sell off is 50 - 100% of average range, then usually get a TR Day, even if big rally. Sometimes get a huge bull trend

A

Big Failed Bull BO = TR More likely than a Bear Trend

If initial rally is 25 - 50% of average range, the often get a big bear trend after reversal (Selloff fell below open)

If initial sell off is 50 - 100% of average range, then usually get a TR Day, even if big rally. Sometimes get a huge bull trend

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25
Q

Early BO - What is the Chance the H or L of the Day Already Formed?…

A

Early BO - What is the Chance the H or L of the Day Already Formed?…

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26
Q

How many bars form on a 5 minute chart per hour?

A

12 Bars form on a 5 Minute Chart per hour

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27
Q

Early BO - What is the Chance that the H or L of the Day already formed?…

By the close of Bar 18 there is a 90% chance we have seen either the high or low of the day

A

Early BO - What is the Chance that the H or L of the Day already formed?…

By the close of Bar 18 there is a 90% chance we have seen either the high or low of the day

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28
Q

Traders are always looking for a Swing Trade Early in the Day

Early High or Low of the Day; lets look at the 1st Bar

A

Traders are always looking for a Swing Trade Early in the Day

Early High or Low of the Day; lets look at the 1st Bar

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29
Q

Finding a Swing Trade on the Open

Early High or Low of the Day; 1st 35 Minutes

A

Finding a Swing Trade on the Open

Early High or Low of the Day; 1st 35 Minutes

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30
Q

Finding a Swing Trade on the Open

Early High or Low of the Day; 1st 90 Minutes

A

Finding a Swing Trade on the Open

Early High or Low of the Day; 1st 90 Minutes

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31
Q

Start and End of the Day - High Probability for a Swing Trade

There is a 90% chance of a swing trade beginning in the 1st 2 hours

A

Start and End of the Day - High Probability for a Swing Trade

There is a 90% chance of a swing trade beginning in the 1st 2 hours

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32
Q

Start and End of the Day - High Probability for a Swing Trade

There is a 80% chance of a swing trade beginning in the last 2 hours

A

Start and End of the Day - High Probability for a Swing Trade

There is a 80% chance of a swing trade beginning in the last 2 hours

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33
Q

Start and End of the Day - High Probability for a Swing Trade

There is a 50% chance of a swing trade beginning in the middle of the day

A

Start and End of the Day - High Probability for a Swing Trade

There is a 50% chance of a swing trade beginning in the middle of the day

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34
Q

Middle of the Trading Day is often quite there is a lot of success trading in the first 2 hours of the day and the last 2 hours of the day

A

Middle of the Trading Day is often quite there is a lot of success trading in the first 2 hours of the day and the last 2 hours of the day

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35
Q

Why Trade the open?

A

Because It has a high probability of having a swing trade,

where trader can make at least 4 Points

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36
Q

The Open… Why Trade?

Everyone should be looking for Swing Trades, and they are usually easiest to find it in the open as there is a high chance of finding it in the first hour or two

A

The Open… Why Trade?

Everyone should be looking for Swing Trades, and they are usually easiest to find it in the open as there is a high chance of finding it in the first hour or two

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37
Q

Reversal on 5 Minute Chart = Creates Tail on Daily Chart (Bull Day)

A

Reversal on 5 Minute Chart = Creates Tail on Daily Chart (Bull Day)

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38
Q

Reversal on 5 Minute Chart = Creates Tail on Daily Chart (Bear Day)

A

Reversal on 5 Minute Chart = Creates Tail on Daily Chart (Bear Day)

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39
Q

What are the 3 Most Common Patterns Traders see on the Open?

A
  1. Trend from the open
  2. BO Mode (BOM)
  3. Opening Reversal
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40
Q

Sometimes you have to take multiple entries as a Swing Trader before you get a good swing

A

Sometimes you have to take multiple entries as a Swing Trader before you get a good swing

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41
Q

MOST IMPORTANT RULE IS TO BE PREPARED FOR ANYTHING AND DO NOT BE SURPRISED BY ANYTHING

Never have an opinion about what the market should do or not do

Simply just trade what is in front of you, do not worry why it is doing it

A

MOST IMPORTANT RULE IS TO BE PREPARED FOR ANYTHING AND DO NOT BE SURPRISED BY ANYTHING

Never have an opinion about what the market should do or not do

Simply just trade what is in front of you, do not worry why it is doing it

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42
Q

Stop Order Entry - 90% of the Days

Patiently wait for a pattern and a good signal bar

A

Stop Order Entry - 90% of the Days

Patiently wait for a pattern and a good signal bar

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43
Q

Best Choice is Stop Orders or Enter on the Close of a Bar and Swing Trade

Patiently waiting for a pattern and a good signal bar is always best

A

Best Choice is Stop Orders or Enter on the Close of a Bar and Swing Trade

Patiently waiting for a pattern and a good signal bar is always best

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44
Q

Orders - Stop or Limit?

A

Orders - Stop or Limit?

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45
Q

Bar Counting on the Open - Low 1, 2, 3

A

Bar Counting on the Open - Low 1, 2, 3

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46
Q

Bar Counting on the Open - High 1, 2, 3

A

Bar Counting on the Open - High 1, 2, 3

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47
Q

Three common open patterns (Bears)

A

Three common open patterns (Bears)

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48
Q

Three common open patterns (Bulls)

A

Three common open patterns (Bulls)

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49
Q

How did yesterday end? It is important to know because it quite often affects how I will trade usually in the first couple of hours

A

How did yesterday end? It is important to know because it quite often affects how I will trade usually in the first couple of hours

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50
Q

Context is less Important on the Open of the Day

A reversal always takes place at support or resistance that was created during prior days

A

Context is less Important on the Open of the Day

A reversal always takes place at support or resistance that was created during prior days

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51
Q

It is very helpful when you are trading the 5 min chart and look at the daily chart to see what the market has done over the past several days

A

It is very helpful when you are trading the 5 min chart and look at the daily chart to see what the market has done over the past several days

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52
Q

Context: TR on Higher TF

Bars are having two day reversals making TR days on 5minute TFs likely

A

Context: TR on Higher TF

Bars are having two day reversals making TR days on 5minute TFs likely

53
Q

Context, Bull Trend on Higher Time Frame

If most days on the daily chart were bull trend bars, probability is higher for today of having an early low that creates a tail on the bottom of the bar on the daily

A

Context, Bull Trend on Higher Time Frame

If most days on the daily chart were bull trend bars, probability is higher for today of having an early low that creates a tail on the bottom of the bar on the daily

54
Q

Look at this Daily Chart, what do you see to the left?

Over the past 8-10 Bars NO BULL BODIES… Chances are the market will selloff early in the day like most of the bars did to the left

A

Look at this Daily Chart, what do you see to the left?

Over the past 8-10 Bars NO BULL BODIES… Chances are the market will selloff early in the day like most of the bars did to the left

55
Q

Context, on ANY higher TF can be Important

A

Context, on ANY higher TF can be Important

56
Q

The END of Yesterday affects the beginning of today and the tone for the day

Context, Yesterday Ended with a BUY CLIMAX what some possibilities for todays market conditions with that context?

A

The END of Yesterday affects the beginning of today and the tone for the day

Context, Yesterday Ended with a BUY CLIMAX what some possibilities for todays market conditions with that context?

57
Q

The END of Yesterday affects the beginning of today

Context, Yesterday Ended with a SELL CLIMAX what some possibilities for todays market conditions with that context?

A

The END of Yesterday affects the beginning of today

Context, Yesterday Ended with a SELL CLIMAX what some possibilities for todays market conditions with that context?

58
Q

Swing Trade with the use of the context from yesterday, signal bar, and BO

A

Swing Trade with the use of the context from yesterday, signal bar, and BO

59
Q

If I see a pair of BIG BULL Bars on the open odds are it will NOT be a Bear Trend Day it will probably be a TR or Bull Trend Day

and

If I see a pair of BIG BEAR Bars on the open odds are it will not be a Bull Trend Day it will probably be a TR or Bear Trend Day

A

If I see a pair of BIG BULL Bars on the open odds are it will NOT be a Bear Trend Day it will probably be a TR or Bull Trend Day

and

If I see a pair of BIG BEAR Bars on the open odds are it will not be a Bull Trend Day it will probably be a TR or Bear Trend Day

60
Q

When you have a Big Gap up on the Open you often get a selloff to the Moving Average

A

When you have a Big Gap up on the Open you often get a selloff to the Moving Average

61
Q

Leg in Trend or TR?

Whenever you see really good looking bull bars with bad follow-through, the rally is more likely a bull leg in what will become a TR

A

Leg in Trend or TR?

Whenever you see really good looking bull bars with bad follow-through, the rally is more likely a bull leg in what will become a TR

62
Q

Context is important always pay attention to what the bars to the left look like

Especially the daily chart; if most of the days are bull days chances are today will be a bull day, if most of the days are bear days chances are today will be a bear day and that means it will probably get an early selloff, if most of the days are doji bars and the market is in a TTR on the Daily chart chances are today will be a doji day as well(which means the market will go one way and than reverse and go the other way and try and close near the open)

A

Context is important always pay attention to what the bars to the left look like

Especially the daily chart; if most of the days are bull days chances are today will be a bull day, if most of the days are bear days chances are today will be a bear day and that means it will probably get an early selloff, if most of the days are doji bars and the market is in a TTR on the Daily chart chances are today will be a doji day as well(which means the market will go one way and than reverse and go the other way and try and close near the open)

63
Q

If yesterday was a strong trend day there is a …

50% chance there will be a strong continuation of that trend in the 1st two hours today and a 75% that today will be sideways and go in the opposite direction for a couple of hours starting by the end of the 2nd hour

Only a 25% chance today will be an opposite trend

A

If yesterday was a strong trend day there is a …

50% chance there will be a strong continuation of that trend in the 1st two hours today and a 75% that today will be sideways and go in the opposite direction for a couple of hours starting by the end of the 2nd hour

Only a 25% chance today will be an opposite trend

64
Q

For BOM I am looking for a new high that reverses down and then a new low below the low of the 1st bar that reverses up

Ideally the 2nd reversal occurs on the 10th bar or later

And this opening range is about about half the size of an average opening days range or less

A

For BOM I am looking for a new high that reverses down and then a new low below the low of the 1st bar that reverses up

Ideally the 2nd reversal occurs on the 10th bar or later

And this opening range is about about half the size of an average opening days range or less

65
Q

BO of the range of the 1st 18 BARS

In either of these BOs once you get the first BO there is a 90% chance the market will not BO beyond the opposite side of the day/range

For example if I get a Bull BO 90% chance the day will be a Bull day or a TR day and vice versa for the Bears if I get a Bear BO (Bear Day or TR Day)

A

BO of the range of the 1st 18 BARS

In either of these BOs once you get the first BO there is a 90% chance the market will not BO beyond the opposite side of the day/range

For example if I get a Bull BO 90% chance the day will be a Bull day or a TR day and vice versa for the Bears if I get a Bear BO (Bear Day or TR Day)

66
Q

At the end of 18 Bars there is a 90% the market has seen its high or low of the day

A

At the end of 18 Bars there is a 90% the market has seen its high or low of the day

67
Q

Most Days are a early TR that lead to a BO

You want the initial range to be about the size of half the range of a decent day

(Check your chart notes from 9/2/2020 this day did just this)

A

Most Days are a early TR that lead to a BO

You want the initial range to be about the size of half the range of a decent day

(Check your chart notes from 9/2/2020 this day did just this)

68
Q

At the close of the 18 th Bar there is a 90% chance that the market has seen either the low or high of the day and traders will look to trade a BO of the Range of this 18th Bar indicator for the high or low of the day.

A

At the close of the 18 th Bar there is a 90% chance that the market has seen either the low or high of the day and traders will look to trade a BO of the Range of this 18th Bar indicator for the high or low of the day.

69
Q

BO of Opening Range - 2 Types that are common …

BOM Open Tr after 1st Bar but not more than 1 bar initial rally or selloff on the open

&

BO of 1st 18 Bars whether or not there is a TR

A

BO of Opening Range - 2 Types that are common …

BOM Open Tr after 1st Bar but not more than 1 bar initial rally or selloff on the open

&

BO of 1st 18 Bars whether or not there is a TR

70
Q

A lot of Traders will FRONT RUN the pattern, they expect the BO to occur and do not wait for it they enter early

A

A lot of Traders will FRONT RUN the pattern, they expect the BO to occur and do not wait for it they enter early

71
Q

BOM on Open - Sell the BO below Reversal up for MM Down

A

BOM on Open - Sell the BO below Reversal up for MM Down

72
Q

When the initial range is less than 10 bars, some computers will wait to see if bigger opening range forms, then sell BO

SELL BO below Reversal up from MM Down

A

When the initial range is less than 10 bars, some computers will wait to see if bigger opening range forms, then sell BO

SELL BO below Reversal up from MM Down

73
Q

BOM on Open - If the pattern is Small, WAIT for Follow-Through

Selling at the bottom of a TTR is tough and a lot of Traders will wait to sell on the PB Bear Flag (maybe a Wedge Top Flag)

A

BOM on Open - If the pattern is Small, WAIT for Follow-Through

Selling at the bottom of a TTR is tough and a lot of Traders will wait to sell on the PB Bear Flag (maybe a Wedge Top Flag)

74
Q

BOM with Bull BO - 90% chance of a Bull Trend or TR

A

BOM with Bull BO - 90% chance of a Bull Trend or TR

75
Q

BOM on Open, BUY BO above Reversal down for MM Up

A lot of times on the open when you are looking to trade a swing you take multiple trade entires with some losers and winners before you finally get the swing

A

BOM on Open, BUY BO above Reversal down for MM Up

A lot of times on the open when you are looking to trade a swing you take multiple trade entires with some losers and winners before you finally get the swing

76
Q

Bom Open - Sell BO below Reversal up for MM down

A

Bom Open - Sell BO below Reversal up for MM down

77
Q

BOM Open - Enter again on PB and 2nd BO

A

BOM Open - Enter again on PB and 2nd BO

78
Q

If TR Price Action it is likely to remain a TR DAY

A

If TR Price Action it is likely to remain a TR DAY

79
Q

When Traders think a BO is going to take place A LOT of times they will Front Run the BO

On this Chart Buy Reversal up “2nd Entry” from a test of the low FOR a potential front runner for the BULLS

On this Chart Buy Reversal down “2nd Entry” from a test of the high FOR a potential front runner for the BEARS

A

When Traders think a BO is going to take place A LOT of times they will Front Run the BO

On this Chart Buy Reversal up “2nd Entry” from a test of the low FOR a potential front runner for the BULLS

On this Chart Buy Reversal down “2nd Entry” from a test of the high FOR a potential front runner for the BEARS

80
Q

18th Bar - Look for a BO or Reversal between Bars 16 - 20

A

18th Bar - Look for a BO or Reversal between Bars 16 - 20

81
Q

Encapsulating the 18th Bar into some kind of range also helps to trade with a lot more context

A

Encapsulating the 18th Bar into some kind of range also helps to trade with a lot more context

82
Q

BO BELOW 18 Bar Range - TR Day

A

BO BELOW 18 Bar Range - TR Day

83
Q

On PBs look for TESTS of the Signal Bars High

A great location is here to enter on a PB Entry

A

On PBs look for TESTS of the Signal Bars High

A great location is here to enter on a PB Entry

84
Q

BOM on Open - Many New Highs and Lows

A

BOM on Open - Many New Highs and Lows

85
Q

BOM of 1st 18 Bars it often goes sideways

A

BOM of 1st 18 Bars it often goes sideways

86
Q

BTC Deep PB so TR Day Likely

A

BTC Deep PB so TR Day Likely

87
Q

Sometimes when the market reverses up from below Yesterdays Low it becomes a Bear Flag and then the Bear Trend Resumes so I have to be aware that the reversal will not always work and I have to be prepared for the Bear Trend to resume and I have to get Short again and the opposite is true at the high.

If the market breaks above Yesterdays High and Reverses down but the Reversal becomes a Bull Flag , I have to be prepared to get out of Shorts and to look to get LONG

A

Sometimes when the market reverses up from below Yesterdays Low it becomes a Bear Flag and then the Bear Trend Resumes so I have to be aware that the reversal will not always work and I have to be prepared for the Bear Trend to resume and I have to get Short again and the opposite is true at the high.

If the market breaks above Yesterdays High and Reverses down but the Reversal becomes a Bull Flag , I have to be prepared to get out of Shorts and to look to get LONG

88
Q

Yesterdays High is important Resistance & Yesterdays Low is important Support

If the market breaks above yesterdays high and reverses down that is a reasonable sell especially if there is a 2nd entry sell for a swing down

AND

If the market breaks below yesterdays low and reverses up that is a reasonable buy especially if there is a 2nd entry buy for a swing up

A

Yesterdays High is important Resistance & Yesterdays Low is important Support

If the market breaks above yesterdays high and reverses down that is a reasonable sell especially if there is a 2nd entry sell for a swing down

AND

If the market breaks below yesterdays low and reverses up that is a reasonable buy especially if there is a 2nd entry buy for a swing up

89
Q

Failed BO of Yesterday’s H or L FOCUS on the 2nd Reversal for a 2nd Entry

A

Failed BO of Yesterday’s H or L FOCUS on the 2nd Reversal for a 2nd Entry

90
Q

2nd Failed BO High of Yesterday - MICRO DT

Micro DT so L2 opening reversal down from yesterdays high

A

2nd Failed BO High of Yesterday - MICRO DT

Micro DT so L2 opening reversal down from yesterdays high

91
Q

2nd Failed BO above Yesterdays H - STRONG BEAR

A

2nd Failed BO above Yesterdays H - STRONG BEAR

92
Q

Opening Reversal (ORV) - 2nd Reversal down from Yesterdays High

Failed BO above yesterdays high

Sell 2nd reversal down (opening reversal), you want a bear signal bar for a reasonable short for a swing down

A

Opening Reversal (ORV) - 2nd Reversal down from Yesterdays High

Failed BO above yesterdays high

Sell 2nd reversal down (opening reversal), you want a bear signal bar for a reasonable short for a swing down

93
Q

Whenever the previous day was a small quiet TR Day it increases the odds that the present day will have an outside day (Trading outside the range of yesterday on either side - outside down day & an outside up day)

Failed BO above Yesterdays H - 2nd Sell Signal for a short

Failed BO below Yesterdays L - Parabolic Wedge Bottom, Buy reversal up from micro DB or But at PB after strong reversal up

A

Whenever the previous day was a small quiet TR Day it increases the odds that the present day will have an outside day (Trading outside the range of yesterday on either side - outside down day & an outside up day)

Failed BO above Yesterdays H - 2nd Sell Signal for a short

Failed BO below Yesterdays L - Parabolic Wedge Bottom, Buy reversal up from micro DB or But at PB after strong reversal up

94
Q

Opening Reversal (ORV) - 2nd Reversal up from below Yesterdays Low

A

Opening Reversal (ORV) - 2nd Reversal up from below Yesterdays Low

95
Q

2nd Failed BO below Yesterdays L - Reversal Day, DOJI Day

A

2nd Failed BO below Yesterdays L - Reversal Day, DOJI Day

96
Q

Parabolic Wedge (PW) Bottom - 2nd Failed BO below Yesterday’s Low

Whenever you have a very big sell off and than a reversal it is usually a TR Day not a Bull Trend Day

A

Parabolic Wedge (PW) Bottom - 2nd Failed BO below Yesterday’s Low

Whenever you have a very big sell off and than a reversal it is usually a TR Day not a Bull Trend Day

97
Q

Opening Reversal (ORV) - 2nd Failed BO below Yesterdays Low

Big Bear Trend (Gap Down) Open, Big Down after Big Down = Big confusion so probable TR day and we got a Bear Trend resumption near the end of the day

A

Opening Reversal (ORV) - 2nd Failed BO below Yesterdays Low

Big Bear Trend (Gap Down) Open, Big Down after Big Down = Big confusion so probable TR day and we got a Bear Trend resumption near the end of the day

98
Q

Gap Down Failed to BO below Yesterdays Low, 2nd Entry buy entry!

A

Gap Down Failed to BO below Yesterdays Low, 2nd Entry buy entry!

99
Q

Every Pattern can fail and I should be aware of how a failure looks

Failed BO above H of Yesterday; 2nd Entry Short Failed

At some point I have to decide the Sell is going to Fail

A

Every Pattern can fail and I should be aware of how a failure looks

Failed BO above H of Yesterday; 2nd Entry Short Failed

At some point I have to decide the Sell is going to Fail

100
Q

Sometimes the market will BO above Yesterdays high and then reverse down and then the Bulls will Buy the Reversal and the BO than Resumes = a failed reversal BO of yesterdays range

AND

the same can happen at the bottom break Below yesterdays Low and try to reverse up but that reversal attempt fails and the day becomes a Bear Trend

A

Sometimes the market will BO above Yesterdays high and then reverse down and then the Bulls will Buy the Reversal and the BO than Resumes = a failed reversal BO of yesterdays range

AND

the same can happen at the bottom break Below yesterdays Low and try to reverse up but that reversal attempt fails and the day becomes a Bear Trend

101
Q

It is pretty common that you have to take several trades before you get a swing

A

It is pretty common that you have to take several trades before you get a swing

102
Q

Failed BO above H of Yesterday; 2nd Entry Short FAILED

A

Failed BO above H of Yesterday; 2nd Entry Short FAILED

103
Q

Failed BO Low of Yesterday; 2nd Reversal Up

Remember on the open no matter how strong the open is there is a 50% chance it will reverse

A

Failed BO Low of Yesterday; 2nd Reversal Up

Remember on the open no matter how strong the open is there is a 50% chance it will reverse

104
Q

Gap openings; they can be anything such as a Gap above or below yesterdays high or low OR simply a Gap below or above the final bar of yesterday

A

Gap openings; they can be anything such as a Gap above or below yesterdays high or low OR simply a Gap below or above the final bar of yesterday

105
Q

Its important to think of a Gap as a BO and a BO on the Open has a 50% chance of reversing

A

Its important to think of a Gap as a BO and a BO on the Open has a 50% chance of reversing

106
Q

If there is a big gap there is a slightly higher probability there will be a trend in the direction of the gap

Therefore a HUGE gap down slightly more a probably for a Trend Day Down and vice versa for a HUGE gap up

A

If there is a big gap there is a slightly higher probability there will be a trend in the direction of the gap

Therefore a HUGE gap down slightly more a probably for a Trend Day Down and vice versa for a HUGE gap up

107
Q

On the open the market often enters a TR and that TR can become a Flag

For Example if I have a Gap Down then followed by a Rally up to the high of the day near the MA , I can have a DT Bear Flag for the possible High of the Day

If I get a couple legs up it could be a Wedge Bear Flag High of the Day

A

On the open the market often enters a TR and that TR can become a Flag

For Example if I have a Gap Down then followed by a Rally up to the high of the day near the MA , I can have a DT Bear Flag for the possible High of the Day

If I get a couple legs up it could be a Wedge Bear Flag High of the Day

108
Q

Gap Up Creates Support which is a magnet

Computers use gaps as targets and they have many choices

A

Gap Up Creates Support which is a magnet

Computers use gaps as targets and they have many choices

109
Q

Whenever there is a Gap Up it is a BO

BOs on the open have a 50% chance of reversing

Generally the Bigger the Gap up the odds increase of it being a Trend Day and the Bigger the Gap the Bigger the potential Trend Day

A

Whenever there is a Gap Up it is a BO

BOs on the open have a 50% chance of reversing

Generally the Bigger the Gap up the odds increase of it being a Trend Day and the Bigger the Gap the Bigger the potential Trend Day

110
Q

Big Gaps up = 25% of the Time you get a Bull or Bear Trend from open and the Remaining 50% of the time you will get the market moving sideways

A

Big Gaps up = 25% of the Time you get a Bull or Bear Trend from open and the Remaining 50% of the time you will get the market moving sideways

111
Q

Whenever there is a Gap Down it is a BO

BOs on the open have a 50% chance of reversing

Generally the Bigger the Gap down the odds increase of it being a Trend Day and the Bigger the Gap the Bigger the potential Trend Day

A

Whenever there is a Gap Down it is a BO

BOs on the open have a 50% chance of reversing

Generally the Bigger the Gap down the odds increase of it being a Trend Day and the Bigger the Gap the Bigger the potential Trend Day

112
Q

Gap Down Creates Resistance which is a magnet

Computers use gaps as targets and they have many choices

A

Gap Down Creates Resistance which is a magnet

Computers use gaps as targets and they have many choices

113
Q

Whenever you have a BIG GAP DOWN like this, the odds are that youre going to get a Trend Day and the odds are slightly higher that it will be a bear Trend Day

However a Bull Trend Day can still occur as you can see here it turned into a Bull Trend for the First several hours

A

Whenever you have a BIG GAP DOWN like this, the odds are that youre going to get a Trend Day and the odds are slightly higher that it will be a bear Trend Day

However a Bull Trend Day can still occur as you can see here it turned into a Bull Trend for the First several hours

114
Q

Do not think to much much the news is saying

There is a Big Gap down and the market is going up you have to buy

A

Do not think to much much the news is saying

There is a Big Gap down and the market is going up you have to buy

115
Q

Big Gaps down = 25% of the Time you get a Bull or Bear Trend from open and the Remaining 50% of the time you will get the market moving sideways

A

Big Gaps down = 25% of the Time you get a Bull or Bear Trend from open and the Remaining 50% of the time you will get the market moving sideways

116
Q

Very often I will have to take multiple entries before it leads to a sign trade, as I can see on this chart which eventually did become a TR day

A

Very often I will have to take multiple entries before it leads to a sign trade, as I can see on this chart which eventually did become a TR day

117
Q

Gap Up - Bull Trend from the Open

Many early Big Bull Bars early on closing near their highs = odds are a Bull Trend day or TR are likely and a bear trend is unlikely

I must BUY Early

Gaps and Negative Gaps are signs that the market is going higher

A

Gap Up - Bull Trend from the Open

Many early Big Bull Bars early on closing near their highs = odds are a Bull Trend day or TR are likely and a bear trend is unlikely

I must BUY Early

Gaps and Negative Gaps are signs that the market is going higher

118
Q

Big Gap Up - Reversal down, Then Bear Trend from the Open

Even with big gap up, many early big bear bars closing near their lows make it a bear trend or TR likely

and make the bull trend unlikely

A

Big Gap Up - Reversal down, Then Bear Trend from the Open

Even with big gap up, many early big bear bars closing near their lows make it a bear trend or TR likely

and make the bull trend unlikely

119
Q

When I have a huge sell off to start the day and I get a big reversal it will have a hard time closing above the early high of the day

If it gets above it, most likely the market will back below it and also close below it

A

When I have a huge sell off to start the day and I get a big reversal it will have a hard time closing above the early high of the day

If it gets above it, most likely the market will back below it and also close below it

120
Q

Gap Down - Bear Trend Day from the Open

Many early big bear bars closing near their low makes it likely to be a bear trend day or a TR day and the bull trend day is unlikely

Consecutive big bear bars closing below their midpoints, AIS = Sell Close of follow-through bar

A

Gap Down - Bear Trend Day from the Open

Many early big bear bars closing near their low makes it likely to be a bear trend day or a TR day and the bull trend day is unlikely

Consecutive big bear bars closing below their midpoints, AIS = Sell Close of follow-through bar

121
Q

Gap Down - Reversal up, then Bull Trend From the Open

Even with big gap down, many early big bull bars closing near their highs make a Bull Trend or TR day likely and a bear trend day unlikely

A

Gap Down - Reversal up, then Bull Trend From the Open

Even with big gap down, many early big bull bars closing near their highs make a Bull Trend or TR day likely and a bear trend day unlikely

122
Q

The market forms Bull/Bear Flags on the OPEN; DBs, DTs, Wedges, etc

A

The market forms Bull/Bear Flags on the OPEN; DBs, DTs, Wedges, etc

123
Q

Big Gap Up and a Rally followed by an 8 Bear Bar Selloff, then a DB @ the MA

DB with low of day so Opening Reversal up from MA(Support)

Also, about 50% from rally up from yesterday’s low

A

Big Gap Up and a Rally followed by an 8 Bear Bar Selloff, then a DB @ the MA

DB with low of day so Opening Reversal up from MA(Support)

Also, about 50% from rally up from yesterday’s low

124
Q

Gap Up - Wedge Bottom PB to MA (Wedge Bull Flag just above Moving Average)

Whenever there is a very strong Rally on the open it is common for the market to go sideways

A

Gap Up - Wedge Bottom PB to MA (Wedge Bull Flag just above Moving Average)

Whenever there is a very strong Rally on the open it is common for the market to go sideways

125
Q

Sometimes it is easier to connect the low of the first bar and the low of the third bar to form the Wedge even if the second bar overshoots, that is ok

A

Sometimes it is easier to connect the low of the first bar and the low of the third bar to form the Wedge even if the second bar overshoots, that is ok

126
Q

Gap Down - DT Bear Flag just below MA

A

Gap Down - DT Bear Flag just below MA

127
Q

Gap Down - DT Bear Flag just below MA

Higher Probability to Sell below Bear Bars or sell the close of consecutive bear bars

A

Gap Down - DT Bear Flag just below MA

Higher Probability to Sell below Bear Bars or sell the close of consecutive bear bars

128
Q

Gap Down - Wedge Bear Flag at MA = Sell on BEAR SELL SIGNAL Bar below MA

A

Gap Down - Wedge Bear Flag at MA = Sell on BEAR SELL SIGNAL Bar below MA

Al Brooks - How to Trade Price Action (18 decks)

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