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
Hello,
let's say we are in bear trend.
Then BTC triggers Always In (large bull bar, or 2 medium bull trend bars, or series of small bull bars).
However, the BTC signal didn't invalidated the bear trend: bear trend line might have been violated, but there was no major higher low yet.
In such case, should all long position be ignored, until MTR?
Are there any cases where it's ok to take a BTC in context of a bear trend or vice versa?
Please share your experience.
Hi Ben,
The decision to trade against the dominant trend depends heavily on the context and strength of the signals. Even in a bear trend, there may be situations where a "Buy The Close" (BTC) trade could be justified. This could happen when there are large bull bars closing on their highs or a series of smaller bull bars that show buying pressure, suggesting a potential reversal or a substantial pullback.
However, the market has inertia and tends to continue in its dominant direction. Most trend reversals fail, and even when one succeeds in reversing the market, a trading range is more likely to form than a trend in the opposite direction.
The presence of a BTC signal in a bear trend might suggest a temporary or minor reversal (a pullback) rather than a Major Trend Reversal (MTR). In a situation where the BTC signal does not invalidate the bear trend, traders would typically be cautious. They might wait for a more significant higher low before considering long positions, indicating a potential MTR.
If there's a strong BTC signal, such as a large bull bar or a series of bull bars that significantly stand out from prior action, a trader might decide to take a long position with the understanding that this trade goes against the prevailing bear trend. The risk is often higher and the probability is low, so a trader might opt for a much much smaller position size and try for a swing.
Every case is unique and there's no single yes/no answer. If you have screenshots in the future that led you to wonder about such situation please include.
Hope this helps,
CH
__________________
BPA Telegram Group
Hi Mr. Carpet,
thank you for your answer. Indeed I think you are right: the guidelines should be applied on a case by case basis. The next time I will stumble upon such a case I will post the sceenshot here.
Hello,
Upon further study of this critical concept, I'm a bit confused about the intertwining of the following notions:
- Binary decision
- Always in/long
- BTC/STC
From my understanding, please correct me if I'm wrong:
- The "Always in" direction can be defined by either the direction of the trend or a breakout. These can be contradictory: a bull trend can still be in effect, but a bear breakout (such as after a buy climax) can trigger the "Always in short" mode.
- Since BTC is triggered by a large bull bar, or 2 medium bull trend bars, or a series of small bull bars, then BTC is always a breakout. And a bull breakout always triggers BTC.
- And Binary decision, is similar to AIL/S?
