trade taken on Monday night, New York open period

Pound dollar expanding triangle

Took 4 legs of the triangle before I realized what it was, could have entered a lot earlier with a lot more volume as the risk return is the best there can be.

Add to this for future reference: the character of candles were strong pushes (trend bars), then an inside bar signal bar and then a turn in the other direction. The small inside bar signal bars were very reliable.

From the Sanuk forum

"Failure", or "price failure", is one of many vague terms used in
technical analysis.

From what I've seen, it might me nothing more than that price "failed"
to go where you expected. It could also mean price failed, after a
pullback within a trend, to make a LL in a downtrend or a HH in an
uptrend, or failed to bust through some S/R level or some S/R trend
line, or, after breaking through R/S, "failed" to hold above/below
that old R/S. A "failure" may coincide with a high volume bar, wide
range bar, candlestick with long wick, reversal bar pair, etc.

Someones comments on L1 2s and H1 2s

Let Lx = L1 or L2 and Hx = H1 or H2.

You are correct to observe that there are many Lx and Hx that Brooks
did not mark.

Brooks marks only the Lx or Hx that fit his PRECONCEPTION of the
market direction.
He has ALREADY forecasted market direction BEFORE he marks Lx or Hx.
If he thinks the trend is up, he's only looking to enter on Hx.
If he thinks the trend is down, he's only looking to enter on Lx.
That is why he does not mark all possible Lx and Hx.

All Brooks is trying to do is enter the trend at what he hopes will be
the end of a pullback. The supposed pullback can have 1, 2, 3 or MORE
countertrend pushes.
So, for example, if you short on L1, you are assuming the pullback has
ended after only 1 push. If you short on L2, you are assuming the
pullback has ended after 2 pushes.

An Lx is merely a bar where he would have gone short had he previously
placed a sell stop 1 tick below the low of the previous the setup bar.
An Hx is merely a bar where he would have gone long had he previously
placed a buy stop 1 tick above the high of the previous the setup bar.

It is conceivable that he might place a buy stop 1 tick above AND a
sell stop 1 tick below the SAME setup bar.

So these are the basic steps:
(1) Assess trend direction.
(2) Wait for a correction to begin.
(3) When a suitable (depends on whether you expect the correction will
have 1 or 2 pushes) setup bar appears within the correction, place the
appropriate entry stop order 1 tick above/below the setup bar. You may
have to adjust the entry stop order if you stop is not filled and a
new setup bar develops.

In practice, the process of finding Lx or Hx is dynamic. You may have
to trail your entry stop to find it. You won't know you've found it
until your entry stop order price is touched.

Do not confuse the process of identification of Lx and Hx with the
process of forecasting market direction.
You must forecast market direction BEFORE you can even decide whether
to look for Lx or Hx.

Todays (not finished yet!) ideal entries

I was working so I could not trade them, but in hind sight (now hind sight any learner can do (including myself)).

EUR JPY

Profit margins

Interesting that this is all that Al Brooks aims for, probably equivalent to a 8 pip gain on a 16 pip stop. The profit coming from very large lot sizes, rather than pip gains.
"With the trend" trades he will swing half the position at SL=0 once the scalp position has been realized.
The guy below, said to be the most successful trader, also trades in the same philosophy, small gains at very high position sizes.

http://www.trading-naked.com/paul_rotter.htm

NFEC, is it a non-trade hour?

GBP USD had a strong trend bar, which resulted in clear trending action, very tradeable (overshoot, take the first L2)




EUR JPY's NFEC bar is a doji (ranging bar) and the behaviour of the market after this is ranging (not fun)