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Al Brooks - How to Trade Price Action > Swing Trading Examples > Flashcards

Swing Trading Examples Flashcards

1
Q

How much percent of the time is the the BO phase followed by a PB then a Channel or TR?

A

90% of the time the BO phase is followed by a PB and then a Channel or a TR

Spike and Channel is a very common pattern

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2
Q

Opening Reversal - Into a Bull Trend

50% of opens have failed BOs and Reversals

Strong Selloff and then Opening Reversal Trapped Bears

After 2 or more consecutive big bull bars closing on their highs & with little overlap there is a 70% chance of a least a MM up (after the failed opening sell off now turned bull trend)

A

Opening Reversal - Into a Bull Trend

50% of opens have failed BOs and Reversals

Strong Selloff and then Opening Reversal Trapped Bears

After 2 or more consecutive big bull bars closing on their highs & with little overlap there is a 70% chance of a least a MM up (after the failed opening sell off now turned bull trend)

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3
Q

Spike and Channel Bull Trend - A VERY COMMON PATTERN

90% of the time the BO phase is followed by a PB and then a Channel or a TR

10% of the time the Bull BO reverses, it is usually as a Parabolic Wedge Top when this reversal occurs

A

Spike and Channel Bull Trend - A VERY COMMON PATTERN

90% of the time the BO phase is followed by a PB and then a Channel or a TR

10% of the time the Bull BO reverses, it is usually as a Parabolic Wedge Top when this reversal occurs

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4
Q

Swing Trades that begin on the open usually last at least 2-3 hours, but can be 30 minutes to 4 hours

A

Swing Trades that begin on the open usually last at least 2-3 hours, but can be 30 minutes to 4 hours

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5
Q

How much percentage of the time do Bull BOs reverse? And what pattern usually leads to the reversal?

A

10% of the time the Bull BO reverses, it is usually as a Parabolic Wedge Top when this reversal occurs

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6
Q

Bull Opening Reversal then TR

Failed attempt @ follow-through buying, after yesterday’s strong close

@ the opening of the day if I see TWO BIG BEAR BARS closing on their lows I should determine the market is AIS

A

Bull Opening Reversal then TR

Failed attempt @ follow-through buying, after yesterday’s strong close

@ the opening of the day if I see TWO BIG BEAR BARS closing on their lows I should determine the market is AIS

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7
Q

What Pattern is the on the open?

A

Parabolic Wedge Top

This is a very common pattern on the open (Remember 50% of Strong Opens REVERSE!)

Typical in a Parabolic Wedge opening reversal, when it starts to reverse it goes down in a fairly tight channel for 5 or 10 bars.

If instead it goes for 5 or 6 bars and then bounces for a little bit then it probably will not be a parabolic wedge top bear trend

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8
Q

Whenever I have a Wedge and the final push leg is Strong odds are the wedge will be a 2nd leg up

A

Whenever I have a Wedge and the final push leg is Strong odds are the wedge will be a 2nd leg up

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9
Q

This is a FAIRLY COMMON PATTERN ON THE OPEN

PARABOLIC WEDGE TOP then Bear Trend

This could be a Bull Trend in what would become a TR or The High of the Day so a Bear Trend Day; therefore I must be prepared to sell

A

This is a FAIRLY COMMON PATTERN ON THE OPEN

PARABOLIC WEDGE TOP then Bear Trend

This could be a Bull Trend in what would become a TR or The High of the Day so a Bear Trend Day; therefore I must be prepared to sell

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10
Q

In a Triangle there is a 50% BO in either direction

A

In a Triangle there is a 50% BO in either direction

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11
Q

Bull Trend, then TR; Bulls want a Trend Resumption

A

Bull Trend, then TR; Bulls want a Trend Resumption

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12
Q

Parabolic Wedge Top then Failed Bear BO

It is very important to mark the LOD and HOD as a failed BO in these S/R can warrant a move up or down entry up the failed BO.

When there is a wedge or a DB or any pattern that strengthens these failed BOs for a trade it is a great entry

A

Parabolic Wedge Top then Failed Bear BO

It is very important to mark the LOD and HOD as a failed BO in these S/R can warrant a move up or down entry up the failed BO.

When there is a wedge or a DB or any pattern that strengthens these failed BOs for a trade it is a great entry

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13
Q

Sell Climax then a WEAK BULL CHANNEL

This is TR Price Action

A

Sell Climax then a WEAK BULL CHANNEL

This is TR Price Action

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14
Q

Parabolic Wedges are not only up they can also be down

Whenever I get a series of 3 or 4 Consecutive Sell Climaxes on the Open I have to be thinking about an Opening Reversal - A parabolic Wedge Selloff then Reversal up and end of the Bear Trend

A

Parabolic Wedges are not only up they can also be down

Whenever I get a series of 3 or 4 Consecutive Sell Climaxes on the Open I have to be thinking about an Opening Reversal - A parabolic Wedge Selloff then Reversal up and end of the Bear Trend

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15
Q

Once the market is clearly controlled by the bears, bears will bet that a BO above a prior high will fail

LOM should only be used once a Traded develops a better relationship with the market with screen time

A

Once the market is clearly controlled by the bears, bears will bet that a BO above a prior high will fail

LOM should only be used once a Traded develops a better relationship with the market with screen time

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16
Q

BO above Yesterday’s High then PB

3 consecutive Buy Climaxes - Parabolic Wedge Top but in a tight channel so a bear is unlikely without a TR and a MTR

A

BO above Yesterday’s High then PB

3 consecutive Buy Climaxes - Parabolic Wedge Top but in a tight channel so a bear is unlikely without a TR and a MTR

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17
Q

Reversal Down from Gap Up and Might Resume Up

No Follow - Through buying after yesterdays strong close

Failed BO above yesterdays’s high

STC of Big Bear Bar or Follow - Through Bar

Shorts exit above strong bull buy signal bar near MA

A

Reversal Down from Gap Up and Might Resume Up

No Follow - Through buying after yesterdays strong close

Failed BO above yesterdays’s high

STC of Big Bear Bar or Follow - Through Bar

Shorts exit above strong bull buy signal bar near MA

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18
Q

Opening Reversal - Wedge PB to MA

After yesterdays strong rally, look for an Opening Reversal up from MA and then trend resumption up into a Spike and Channel bull Trend

A

Opening Reversal - Wedge PB to MA

After yesterdays strong rally, look for an Opening Reversal up from MA and then trend resumption up into a Spike and Channel bull Trend

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19
Q

Gap Up, BOM - DB Bull Flag

A

Gap Up, BOM - DB Bull Flag

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20
Q

Tight Bull Channel - BET BEAR REVERSALS WILL FAIL

Tight Bull Channel = ONLY BUY

A

Tight Bull Channel - BET BEAR REVERSALS WILL FAIL

Tight Bull Channel = ONLY BUY

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21
Q

BIG GAP UP - DB Bull Flag at MA

A

BIG GAP UP - DB Bull Flag at MA

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22
Q

Whenever I have a BTC market and then a Big Reversal/Deep PB I must look to Buy above a Bull Bar

The 2nd entry should be at least 2-3x Bigger then a minimum scalp

A

Whenever I have a BTC market and then a Big Reversal/Deep PB I must look to Buy above a Bull Bar

The 2nd entry should be at least 2-3x Bigger then a minimum scalp

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23
Q

Strong Rally Late in Bull - Probably an EXHAUSTIVE RALLY

A

Strong Rally Late in Bull - Probably an EXHAUSTIVE RALLY

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24
Q

Bull Leg in a TR

A

Bull Leg in a TR

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25
Q

Bear Trend from Open - If Weak, WATcH FOR a RALLY

Yesterday ended with a TTR in a TR day, inertia means more TR price action is LIKELY

Selloff on open

No consecutive big bear bars

No clear sell signals or signal bar

Tails, small bars, overlap, reversals, Probably a bear leg in a TR DAY

A

Bear Trend from Open - If Weak, WATcH FOR a RALLY

Yesterday ended with a TTR in a TR day, inertia means more TR price action is LIKELY

Selloff on open

No consecutive big bear bars

No clear sell signals or signal bar

Tails, small bars, overlap, reversals, Probably a bear leg in a TR DAY

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26
Q

At some point in a weak bear trend open you will determine a TR is likely and look for reason to Buy in on the weak Bear Leg; Wedge Bottom then Bull Trend

A

At some point in a weak bear trend open you will determine a TR is likely and look for reason to Buy in on the weak Bear Leg; Wedge Bottom then Bull Trend

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27
Q

Rally from GAP DOWN OPEN - Can fail around MA and 50% PB

A

Rally from GAP DOWN OPEN - Can fail around MA and 50% PB

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28
Q

Wedge Top then Bear TREND

Sell Wedge LH @ MA

Gap Bar, 50% PB

A

Wedge Top then Bear TREND

Sell Wedge LH @ MA

Gap Bar, 50% PB

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29
Q

TR Yesterday - Increases Chance of TR Today

Yesterday had a lot of TR Price Action and Today opened with a lot of TR Price Action

Made a lot of TR price action likely for next several hours

A

TR Yesterday - Increases Chance of TR Today

Yesterday had a lot of TR Price Action and Today opened with a lot of TR Price Action

Made a lot of TR price action likely for next several hours

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30
Q

DB then Triangle and TTR

Sell DT Bear Flag at MA; STRONG SELL SIGNAL Bar

Buy Tight Channel so probably a minor reversal

Lack if consecutive big bear bars so probably bear leg in a TR, not a Bear Trend

A

DB then Triangle and TTR

Sell DT Bear Flag at MA; STRONG SELL SIGNAL Bar

Buy Tight Channel so probably a minor reversal

Lack if consecutive big bear bars so probably bear leg in a TR, not a Bear Trend

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31
Q

Everyone wants clear trading; most days are not very clear so taking the best looking setups will most times yield the best trading results

A

Everyone wants clear trading; most days are not very clear so taking the best looking setups will most times yield the best trading results

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32
Q

Bear Channel - Hold Short but it can be difficult

A

Bear Channel - Hold Short but it can be difficult

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33
Q

Final Bear Flag then a Strong Bull Swing

Gap Down, TTR, BOM (50% chance of a BO in either direction)

50% chance the first BO will reverse

Bear BO and follow-through

  • 50% chance of Measuring Gap
  • 50% chance of Exhaustion Gap
A

Final Bear Flag then a Strong Bull Swing

Gap Down, TTR, BOM (50% chance of a BO in either direction)

50% chance the first BO will reverse

Bear BO and follow-through

  • 50% chance of Measuring Gap
  • 50% chance of Exhaustion Gap
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34
Q

Final Bear Flag then TR Day

Buy failed bear BO (Possible low of the DAY)

Spike and channel bull trend, but 16 bar bull micro channel (this is unsustainable and therefore climatic)

Buy Climax so PB soon likely

A

Final Bear Flag then TR Day

Buy failed bear BO (Possible low of the DAY)

Spike and channel bull trend, but 16 bar bull micro channel (this is unsustainable and therefore climatic)

Buy Climax so PB soon likely

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35
Q

TR Day then a Late Bear BO

A

TR Day then a Late Bear BO

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36
Q

Parabolic Wedge Bottoms are less common than Parabolic Wedge Tops

Here, Wedge, but not very climatic, so not extremely oversold.

Not as much need of strong reversal of oversold market, no consecutive big bear bars, not a parabolic curve down

A

Parabolic Wedge Bottoms are less common than Parabolic Wedge Tops

Here, Wedge, but not very climatic, so not extremely oversold.

Not as much need of strong reversal of oversold market, no consecutive big bear bars, not a parabolic curve down

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37
Q

Early Low- Higher Probability to wait for Strong Rally

It is okay to buy swing , but better to wait as likely there is more sellers above as bears still have more imminent pressure and bigger bodies

A

Early Low- Higher Probability to wait for Strong Rally

It is okay to buy swing , but better to wait as likely there is more sellers above as bears still have more imminent pressure and bigger bodies

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38
Q

Wedge Bottom - Higher Probability to wait for a Rally to then Buy

A

Wedge Bottom - Higher Probability to wait for a Rally to then Buy

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39
Q

Wedge Bottom FAILED

Bear Trends are always forming Wedge Bottoms and Bull Trends are always forming Wedge Tops

When the channel down is very tight the reversals are probably minor and the channels will become bear flags and the market will probably continue down

A

Wedge Bottom FAILED

Bear Trends are always forming Wedge Bottoms and Bull Trends are always forming Wedge Tops

When the channel down is very tight the reversals are probably minor and the channels will become bear flags and the market will probably continue down

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40
Q

What are ALL MTR Bottoms?

A

They are all DBS

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41
Q

2 Legs Down - Then another Bottom Attempt

Another Bear BO below wedge Bottom

Nested Wedge (final leg subdivides into smaller wedges)

NOW ANOTHER PARABOLIC WEDGE BOTTOM (also reached the MM Target)

A

2 Legs Down - Then another Bottom Attempt

Another Bear BO below wedge Bottom

Nested Wedge (final leg subdivides into smaller wedges)

NOW ANOTHER PARABOLIC WEDGE BOTTOM (also reached the MM Target)

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42
Q

2nd Bottom is to likely be the End of the Bear Trend

Consecutive Sell Climaxes, TBTL sideways to up is likely to follow

A

2nd Bottom is to likely be the End of the Bear Trend

Consecutive Sell Climaxes, TBTL sideways to up is likely to follow

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43
Q

Strong BO usually Traps Traders; 2nd Legs are usually Likely

A

Strong BO usually Traps Traders; 2nd Legs are usually Likely

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44
Q

Consecutive Bottoms often form High 4 Buy Setups

When bottoms fails, there are often then 2 legs down and another bottom; this is a High “4” buy setup

High 4 buy setups are just a pair of consecutive bottoms where both have 2-3 legs down

A

Consecutive Bottoms often form High 4 Buy Setups

When bottoms fails, there are often then 2 legs down and another bottom; this is a High “4” buy setup

High 4 buy setups are just a pair of consecutive bottoms where both have 2-3 legs down

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45
Q

High 4 Bottom - 60% chance of 2 Legs Sideways to up

Buy above failed low 2 sell setup

Buy close of strong bull bar or follow-through bar

Became a BTC Bull Trend

Take Profits below failed BO above LH or, rely of stop and hold for a 2nd Leg Up

A

High 4 Bottom - 60% chance of 2 Legs Sideways to up

Buy above failed low 2 sell setup

Buy close of strong bull bar or follow-through bar

Became a BTC Bull Trend

Take Profits below failed BO above LH or, rely of stop and hold for a 2nd Leg Up

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46
Q

Reversal Down from 2nd Leg Up the Bull will TAKE PROFITS

A

Reversal Down from 2nd Leg Up the Bull will TAKE PROFITS

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47
Q

Wedge Bottom Opening Reversal Up from SUPPORT

Failed BO below yesterday’s low

Parabolic Wedge Bottom - Opening reversal up from below yesterday’s low (support)

Buy above weak buy signal bar

The traders who prefer a higher probability trade can buy the close of the bull BO bar, or close of follow-through bar

A

Wedge Bottom Opening Reversal Up from SUPPORT

Failed BO below yesterday’s low

Parabolic Wedge Bottom - Opening reversal up from below yesterday’s low (support)

Buy above weak buy signal bar

The traders who prefer a higher probability trade can buy the close of the bull BO bar, or close of follow-through bar

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48
Q

Micro Channel with Many Bars = Buy Climax

16 Bar Bull Micro Channel is unsustainable and therefore a climax

Stop goes far below so bulls need to take partial profits to reduce risk; a TR is likely soon

A

Micro Channel with Many Bars = Buy Climax

16 Bar Bull Micro Channel is unsustainable and therefore a climax

Stop goes far below so bulls need to take partial profits to reduce risk; a TR is likely soon

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49
Q

Big Gap Down then Reversal Up

Failed BO below yesterday’s low the market is now AIS(the market is going at least a little bit higher)

Possible Trend From the Open Bull Trend

A

Big Gap Down then Reversal Up

Failed BO below yesterday’s low the market is now AIS(the market is going at least a little bit higher)

Possible Trend From the Open Bull Trend

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50
Q

Bull Reversal but LACKS Consecutive Big Bull Ball

Early Buys are lower probability, but stop is close so it is lower risk

A

Bull Reversal but LACKS Consecutive Big Bull Ball

Early Buys are lower probability, but stop is close so it is lower risk

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51
Q

Weak Rally = Probably will move sideways towards the MA

A

Weak Rally = Probably will move sideways towards the MA

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52
Q

DT but Strong Enough Bull Bars for More TR

Losing momentum, far below the magnet of the MA

Possible TR and sideways to MA

So possible new low without converting into a Bear Trend

A

DT but Strong Enough Bull Bars for More TR

Losing momentum, far below the magnet of the MA

Possible TR and sideways to MA

So possible new low without converting into a Bear Trend

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53
Q

Bears need more Bear Bars else it will evolve into a TR

A

Bears need more Bear Bars else it will evolve into a TR

54
Q

DT, but Bad Sell Signal Bar = More Likely to become a TR

Multiple reversals so probably a TR

A

DT, but Bad Sell Signal Bar = More Likely to become a TR

Multiple reversals so probably a TR

55
Q

Bad Follow-Through Selling = TR is Likely

A

Bad Follow-Through Selling = TR is Likely

56
Q

No Strong Sell Signal; Bears need Strong Bear BO

Bears see weak BO above high of the day as a DT with the high of the day

Low Probability Short since not close to MA where most Opening Reversals take place

A

No Strong Sell Signal; Bears need Strong Bear BO

Bears see weak BO above high of the day as a DT with the high of the day

Low Probability Short since not close to MA where most Opening Reversals take place

57
Q

Where do most Opening Reversals take place?

A

Most Opening Reversals occur near or at the MA

58
Q

Without Strong Sell Signal Bar(s) or Strong BO a TR is likely

Many options for bulls and bulls which = uncertainty and means it most likely is a TR

A

Without Strong Sell Signal Bar(s) or Strong BO a TR is likely

Many options for bulls and bulls which = uncertainty and means it most likely is a TR

59
Q

Bull Trend, but without Bigger Bull Bars there is LIMITED UPSIDE

A

Bull Trend, but without Bigger Bull Bars there is LIMITED UPSIDE

60
Q

MTR Bottoms = ALL ARE DBs

A

MTR Bottoms = ALL ARE DBs

61
Q

Biggest Bull Bar but Worst Follow-Through

Bulls bought the close of bull follow-through

Early TR increases the chances for more TR throughout the day

Big Bar, Parabolic Wedge Buy Climax, Possible 2nd Leg Trap @ MM Target in TR Day

A

Biggest Bull Bar but Worst Follow-Through

Bulls bought the close of bull follow-through

Early TR increases the chances for more TR throughout the day

Big Bar, Parabolic Wedge Buy Climax, Possible 2nd Leg Trap @ MM Target in TR Day

62
Q

Top with consecutive Strong Bear Bars - 2 Legs Down is likely

Bulls gave up

Outside down bear bar in conjunction with it being consecutive big bear bars closing on their low; this totally reversed the Buy Climax

A

Top with consecutive Strong Bear Bars - 2 Legs Down is likely

Bulls gave up

Outside down bear bar in conjunction with it being consecutive big bear bars closing on their low; this totally reversed the Buy Climax

63
Q

HL MTR, but Tight Channel - Minor Reversal and TR

A

HL MTR, but Tight Channel - Minor Reversal and TR

64
Q

TTR but Bull Leg Stronger than Bear Leg

A

TTR but Bull Leg Stronger than Bear Leg

65
Q

Strong Selloff - The Bulls likely will not get back to the Highest Close

A

Strong Selloff - The Bulls likely will not get back to the Highest Close

66
Q

Weak Rally, then MA Gap Bars - Possible Start of Bear Leg

A

Weak Rally, then MA Gap Bars - Possible Start of Bear Leg

67
Q

Bears MAKE MONEY in RALLY - Possible Bull Leg in TR

LOM Bears are making money selling above bars and scaling in so not a strong bull day

A

Bears MAKE MONEY in RALLY - Possible Bull Leg in TR

LOM Bears are making money selling above bars and scaling in so not a strong bull day

68
Q

Bear BO after Weak Rally - Possible start of Bear Swing in a TR Day

A

Bear BO after Weak Rally - Possible start of Bear Swing in a TR Day

69
Q

Bear Swing or TR - Bears will Sell LH

A

Bear Swing or TR - Bears will Sell LH

70
Q

Late Bear BO - Possible Exhaustion Gap

A

Late Bear BO - Possible Exhaustion Gap

71
Q

Bear Channel - Bears See Every Rally as a Bear Flag

A

Bear Channel - Bears See Every Rally as a Bear Flag

72
Q

Huge Bear BO Late in Bear Trend - Reversal Up Soon

A

Huge Bear BO Late in Bear Trend - Reversal Up Soon

73
Q

Huge Bear BO Late in Bear Trend - Bulls Buy the Bear Close

STC Bears disappointed and begin buying back shorts

Aggressive Bulls BTC of small bear follow-through bars with a tail or reversal up

For Higher Probability buy after a strong reversal up, or close of 3rd/4th consecutive bull ball that closes above its midpoint

A

Huge Bear BO Late in Bear Trend - Bulls Buy the Bear Close

STC Bears disappointed and begin buying back shorts

Aggressive Bulls BTC of small bear follow-through bars with a tail or reversal up

For Higher Probability buy after a strong reversal up, or close of 3rd/4th consecutive bull ball that closes above its midpoint

74
Q

BTC Rally at the End of the Day

Many Bulls exit below bear bar

If the Bulls do Buy closes and the feel as though price will at least reach the channel they have to ensure their final buy is a least the value of a scalp away from the top of the channel(resistance)

A

BTC Rally at the End of the Day

Many Bulls exit below bear bar

If the Bulls do Buy closes and the feel as though price will at least reach the channel they have to ensure their final buy is a least the value of a scalp away from the top of the channel(resistance)

75
Q

When NOT CLEAR a TR Open is Likely

A

When NOT CLEAR a TR Open is Likely

76
Q

Without Strong Trend Bars a TR is likely

No consecutive big bear bars so bad follow-through, probable bear leg in TR

PBs are small with very little overlap of BO Points with Negative Gaps so almost gaps

though the bear Trend is weak these small signs are early signs of the market slightly favoring the Bears

A

*this was the result

77
Q

Gap down after Small PBs; MM Down is likely

Many dojis, prominent tails, small bodies. When PBs are small and gaps stay open it is possibly a Small PB Bear Trend (These are very strong but very easy to be missed)

Better to hold short

A

Gap down after Small PBs; MM Down is likely

Many dojis, prominent tails, small bodies. When PBs are small and gaps stay open it is possibly a Small PB Bear Trend (These are very strong but very easy to be missed)

Better to hold short

78
Q

Gap down after Small PBs; Possible Small PB Bear Trend

A

Gap down after Small PBs; Possible Small PB Bear Trend

79
Q

Follow - Through Selling, but WEAK - TR Likely for 10 -20 Bars

A

Follow - Through Selling, but WEAK - TR Likely for 10 -20 Bars

80
Q

Bear Leg - Is it in a Trend or a TR?…

A

Bear Leg - Is it in a Trend or a TR?…

81
Q

TTR - Trend Resumption Down or Reversal up? …

A

TTR - Trend Resumption Down or Reversal up? …

82
Q

After Buy Climax a Swing Down or TR … Which one is more likely?…

Wedge Reversal down after failed BO above yesterdays high

Yesterday ended with a Buy Climax, there was a 75% chance of sideways to down for the 2 hours starting in the 1st 2 hours of the day

A

After Buy Climax a Swing Down or TR … Which one is more likely?…

Wedge Reversal down after failed BO above yesterdays high

Yesterday ended with a Buy Climax, there was a 75% chance of sideways to down for the 2 hours starting in the 1st 2 hours of the day

83
Q

After Sell Climax a Swing Up or TR … Which one is more likely?…

A

After Sell Climax a Swing Up or TR … Which one is more likely?…

84
Q

After Sell Climax and TR - Reversals Up or Resumption Down

A

After Sell Climax and TR - Reversals Up or Resumption Down

85
Q

Consecutive Big Bear Bars on the Open - More Likely to go Down some more

Failed Bull BO

Consecutive Big Bear Bars closing on their low, AIS so sellers sell above bars

A

Consecutive Big Bear Bars on the Open - More Likely to go Down some more

Failed Bull BO

Consecutive Big Bear Bars closing on their low, AIS so sellers sell above bars

86
Q

Late Big Bear BO - Reversal Up more LIKELY than a MM DOWN

A

Late Big Bear BO - Reversal Up more LIKELY than a MM DOWN

87
Q

Late Big Bear BO - Bears Take Profits and the Bulls Buy

Exit shorts above strong bull reversal or on strong close of follow-through bar

A

Late Big Bear BO - Bears Take Profits and the Bulls Buy

Exit shorts above strong bull reversal or on strong close of follow-through bar

88
Q

TTR - LOM

TTR so LOM; Bears will sell above bars, bulls will buy below bars

Both use wide stops, scale in and scalp

A

TTR - LOM

TTR so LOM; Bears will sell above bars, bulls will buy below bars

Both use wide stops, scale in and scalp

89
Q

Possible TR Day - Bulls Quick to Take Profits

A

Possible TR Day - Bulls Quick to Take Profits

90
Q

Possible TR Day - Bears Sell Rallies

A

Possible TR Day - Bears Sell Rallies

91
Q

Failed BO, this is very common on the Open

Sell below strong bear bar, DT with yesterday’s high

Failed BO above Bear Channel

A

Failed BO, this is very common on the Open

Sell below strong bear bar, DT with yesterday’s high

Failed BO above Bear Channel

92
Q

Opening Reversal Needs BIG TREND BARSR or else a TR is likely

A

Opening Reversal Needs BIG TREND BARSR or else a TR is likely

93
Q

Consecutive Trend Bars - If not BIG a TR is Likely

A

Consecutive Trend Bars - If not BIG a TR is Likely

94
Q

DT in Opening Range - Often start of Bear Trend

Sell below strong bear bar; WEDGE LH MTR

A

DT in Opening Range - Often start of Bear Trend

Sell below strong bear bar; WEDGE LH MTR

95
Q

DT in Opening Range - Look for a MM DOWN

A

DT in Opening Range - Look for a MM DOWN

96
Q

Whenever you get a series of sell climaxes with bad follow-through after every bar you will probably get a reversal up into a TR

A

Whenever you get a series of sell climaxes with bad follow-through after every bar you will probably get a reversal up into a TR

97
Q

Consecutive Sell Climaxes - Bears Reduce Risk by Taking Profits

After a Sell Climax the market usually gets at least one more small push down to test the low

A

Consecutive Sell Climaxes - Bears Reduce Risk by Taking Profits

After a Sell Climax the market usually gets at least one more small push down to test the low

98
Q

Consecutive Sell Climaxes - STC Bears give up!

A

Consecutive Sell Climaxes - STC Bears give up!

99
Q

Consecutive Sell Climaxes - Rallies are likely soon to occur!

Aggressive bulls bought Sell Climax close and the close of follow-through bar rand below bars ( doing this the need a wide stop)

A

Consecutive Sell Climaxes - Rallies are likely soon to occur!

Aggressive bulls bought Sell Climax close and the close of follow-through bar rand below bars ( doing this the need a wide stop)

100
Q

Consecutive Sell Climaxes - Bulls Buy Early in Reversal Up

Many bulls want high probability but less risk they will buy as it is reversing up and close of reversal bar

A

Consecutive Sell Climaxes - Bulls Buy Early in Reversal Up

Many bulls want high probability but less risk they will buy as it is reversing up and close of reversal bar

101
Q

When the tries market repeatedly to do something and it fails, it usually than tries to do the opposite; it usually reverses

WEAK RALLY - PROBABLY LEG IN TR

A

When the tries market repeatedly to do something and it fails, it usually than tries to do the opposite; it usually reverses

WEAK RALLY - PROBABLY LEG IN TR

102
Q

When TR is Likely the Bulls will look for reasons to take Quick Profits and the Bears will Sell

A

When TR is Likely the Bulls will look for reasons to take Quick Profits and the Bears will Sell

103
Q

When TR Likely the Bears will look to Sell a Weak Bull Rally (Look at 9/8/2020, there was a weak Bull Rally that sold off that I beautifully executed)

A

When TR Likely the Bears will look to Sell a Weak Bull Rally (Look at 9/8/2020, there was a weak Bull Rally that sold off that I beautifully executed)

104
Q

Late BTC - Bulls Exit below a Bear Bar or @ the End of the Day

A

Late BTC - Bulls Exit below a Bear Bar or @ the End of the Day

105
Q

When you have a BOM setup there is a 50% chance the first BO will fail and reverse

When you ultimately get a successful BO reversal there is a 50/50 chance it will either be up or down

A

When you have a BOM setup there is a 50% chance the first BO will fail and reverse

When you ultimately get a successful BO reversal there is a 50/50 chance it will either be up or down

106
Q

Many Small Bear Bars is a BO on a Higher TF Chart

A

Many Small Bear Bars is a BO on a Higher TF Chart

107
Q

Weak Rally, then 3 BEAR BARS = Lower Prices are likely

Bears anting higher probability will sell after 3 or more bear closes below their midpoints

A

Weak Rally, then 3 BEAR BARS = Lower Prices are likely

Bears anting higher probability will sell after 3 or more bear closes below their midpoints

108
Q

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

A

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

109
Q

If I am trading a 5 minute chart and I know the Daily TF Chart is in a BTC trend I should look for an early selloff that reverses up for a possible swing trade

I have to assume each day will be higher and each day will be a Bull Trend Day until proven otherwise. Therefore look for an early selloff to reverse up

A

If I am trading a 5 minute chart and I know the Daily TF Chart is in a BTC trend I should look for an early selloff that reverses up for a possible swing trade

I have to assume each day will be higher and each day will be a Bull Trend Day until proven otherwise. Therefore look for an early selloff to reverse up

110
Q

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

A

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

111
Q

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

A

Daily Chart, Bull Trend - 5 Minute Chart, Buy Early in the Day

112
Q

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

If I am trading a 5 minute chart and I know the Daily TF Chart is in a BTC trend I should look for an early selloff that reverses up for a possible swing trade

I have to assume each day will be higher and each day will be a Bull Trend Day until proven otherwise. Therefore look for an early selloff to reverse up (look at 9/8/2020 for an example of this)

A

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

If I am trading a 5 minute chart and I know the Daily TF Chart is in a BTC trend I should look for an early selloff that reverses up for a possible swing trade

I have to assume each day will be higher and each day will be a Bull Trend Day until proven otherwise. Therefore look for an early selloff to reverse up (look at 9/8/2020 for an example of this)

113
Q

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

I have to assume that everyday will close below the open of the day and I will get a swing down below the open of the day

A

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

I have to assume that everyday will close below the open of the day and I will get a swing down below the open of the day

114
Q

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

No matter how strong a move is on the open there is ALWAYS a 50% chance it will reverse

A

Daily Chart, STC Bear Trend - 5 Minute Chart, Sell Early in the Day

No matter how strong a move is on the open there is ALWAYS a 50% chance it will reverse

115
Q
A
116
Q

When the market is in a Micro Channel on the daily chart, traders will enter on the 1st PB. Therefore a Day Trader who sees a Bull Micro Channel will look to Buy Below yesterday’s Low

A

When the market is in a Micro Channel on the daily chart, traders will enter on the 1st PB. Therefore a Day Trader who sees a Bull Micro Channel will look to Buy Below yesterday’s Low

117
Q

Daily Chart, Bull Micro Channel - 5 Minute Chart, Buy Yesterday’s Low

Once clearly in a Bull Micro Channel in a bull trend or TR odds favor buyers below yesterday’s low

A

Daily Chart, Bull Micro Channel - 5 Minute Chart, Buy Yesterday’s Low

Once clearly in a Bull Micro Channel in a bull trend or TR odds favor buyers below yesterday’s low

118
Q

Daily Chart, Bull Micro Channel - 5 Minute Chart, Buy Yesterday’s Low

If trading on the 5 minute TF and you know the daily is in the Bull Micro Channel but you get a Wedge Top Rally at the MA on the open you can exit your long or if flat go short and expect a PB back into the strength of the daily chart sentiment (if Flat you can enter long after the selloff BO fails)

A

Daily Chart, Bull Micro Channel - 5 Minute Chart, Buy Yesterday’s Low

If trading on the 5 minute TF and you know the daily is in the Bull Micro Channel but you get a Wedge Top Rally at the MA on the open you can exit your long or if flat go short and expect a PB back into the strength of the daily chart sentiment (if Flat you can enter long after the selloff BO fails)

119
Q

Daily Chart, Bear Micro Channel - 5 Minute Chart, S Yesterday’s High

Once clearly in a bear micro channel in a bear trend or TR odds favor sellers above yesterdays high

A

Daily Chart, Bear Micro Channel - 5 Minute Chart, S Yesterday’s High

Once clearly in a bear micro channel in a bear trend or TR odds favor sellers above yesterdays high

120
Q

Daily Chart, Bear Micro Channel - 5 Minute Chart, S Yesterday’s High

Sell Reversal down from above yesterday’s high

Here, a PB came on the 10th Day

A

Daily Chart, Bear Micro Channel - 5 Minute Chart, S Yesterday’s High

Sell Reversal down from above yesterday’s high

Here, a PB came on the 10th Day

121
Q

When the market is in a TR on a Higher TF Chart like a Daily Chart and you see BIG BULL TREND BARS near the Top; those are STC not BTC and vice versa if you see BIG BEAR BARS closing near the bottom of the TR those are BTC bars and traders should be looking to buy a reversal up

A

When the market is in a TR on a Higher TF Chart like a Daily Chart and you see BIG BULL TREND BARS near the Top; those are STC not BTC and vice versa if you see BIG BEAR BARS closing near the bottom of the TR those are BTC bars and traders should be looking to buy a reversal up

122
Q

Daily Chart, TR - Bet against BTC & STC

Remember the 80% Rule: The markets have inertia. In a TR, 80% of strong BO attempts FAIL and Reverse

A

Daily Chart, TR - Bet against BTC & STC

Remember the 80% Rule: The markets have inertia. In a TR, 80% of strong BO attempts FAIL and Reverse

123
Q

Daily Chart, TR - Bet against BTC & STC

The green box on the daily is the bull leg on the 5min and the red box on the daily is the DT sell early reversal down on the 5 minute

This is all in the TR on the Daily being traded on the 5 minute TF

A

Daily Chart, TR - Bet against BTC & STC

The green box on the daily is the bull leg on the 5min and the red box on the daily is the DT sell early reversal down on the 5 minute

This is all in the TR on the Daily being traded on the 5 minute TF

124
Q

Daily Chart, TR - Bet against BTC & STC

A

Daily Chart, TR - Bet against BTC & STC

125
Q

60 Minute Chart - Buy PB to Support

Strong Bull trend on 60 min chart, Bulls willing to buy far above avg price (20 bar EMA)

Expect reversal down will be minor

A

60 Minute Chart - Buy PB to Support

Strong Bull trend on 60 min chart, Bulls willing to buy far above avg price (20 bar EMA)

Expect reversal down will be minor

126
Q

If you are a Day Trader it is very useful to look at higher TF S/R and look for reversals

A

If you are a Day Trader it is very useful to look at higher TF S/R and look for reversals

127
Q

Every reversal up on a higher TF Chart(such as the 60min) started and starts on a lower TF Chart

A

Every reversal up on a higher TF Chart(such as the 60min) started and starts on a lower TF Chart

128
Q

Day traders should look for a reversal up when the daily chart is in an area of Support and likewise for the 60 minute chart also, look for an entry on the 5 minute char t when these higher charts are in these areas of S/R

Think of it as trading the 60Min chart and looking for an early entry on a smaller time frame

A

Day traders should look for a reversal up when the daily chart is in an area of Support and likewise for the 60 minute chart also, look for an entry on the 5 minute char t when these higher charts are in these areas of S/R

Think of it as trading the 60Min chart and looking for an early entry on a smaller time frame

129
Q

60 Min Chart Bull Trend PB to EMA - Buy on 5 Min Chart

A

60 Min Chart Bull Trend PB to EMA - Buy on 5 Min Chart

130
Q

Daily Chart Bear Trend - Sell @ Resistance on 5 Minute chart

A

Daily Chart Bear Trend - Sell @ Resistance on 5 Minute chart

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

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