The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course social media communities
First of all, I'd like to thank Mr. Al Brooks for giving me this opportunity to learn from him. I have been watching the videos and taking notes in my notebook.
I like the fact that there's a trade-off between risk and probability. In this particular setup, the SL is at the high of the bear reversal bar (marked in blue rectangle). The nearer one sells to it, the lower the risk and probability of trade working out, the further away, the higher. In this context, I would like to ask that suppose someone sells after the confirmation of the bear flag (the first bear bar or after it) expecting subsequent continuation of downward move, can the SL be placed somewhere close or has it to be placed at the high of the original bear reversal bar mandatorily? I guess placing it at the high of the first bear Trend Bar after the reversal bull bar makes sense. Selling anywhere before the formation of bear flag/pullback, the original bear reversal bar. Is that so?
Can SL be trailed?
The trade-off is always between risk and reward. Probability allows you to determine if the trade is worthwhile according to the Trader's Equation. The best place for a stop is where the Price Action tells you conditions have changed. Once you move your stop away from there it is subject to being hit by minor reversals that do not change the trend. If you want to trail your stop it needs to be at a point where the Price Action tells you the trend is no longer certain. In your example the place to move the stop is above the bull bar with the red dot after the market resumes the trend with that next bear bar.
Thanks, man. Appreciate it. 🙂
