Daily Setups Buy/Sell Discrepancies with brookspriceaction.com bar-by-bar

Hi PeanutTrader,

My understanding is that the Daily Setups is Al's end of day practice where the markup things that a perfect PA trader should notice in realtime. They are what traders should strive to see.

Since nobody is perfect including Al (even he's as good as any of us dream to be), things he spot in real-time can be incorrect/missing. The bar-by-bar analysis is made by Al in realtime reflected this reality. Thinking about this, if one can be 100% correct in realtime, one can be the richest in the world in no time. It's unreal. However, Al is right enough of time to be a strong PA trader.

Signal bar 24 closed in the top third of the bear channel.

The SBU standard definition (stated in the BrooksPrice Action website) that a 2nd leg up is expected, but thats standard definition.

Here the context is it would be a reversal entry (low probability) and it is high in the bear channel (which diminished the risk/reward).

Therefore, I beleive, thats why it was not considered good enough to be marked as an "always in" swing buy entry in the Daily Setups image. So, waiting for a better 2nd entry would be preferred, if its good enough (if your estimate of the "Traders Equation" is positive enough).

Respondido por: PeanutTrader

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Discrepancies like this usually occur several times for each day's charts between the two websites and very much confuse me as a novice trader. I'm hoping someone can please explain why the two websites conflict and which source I should trust (brookspriceaction.com bar-by-bar or this website's Daily Setups) in cases where there is a mismatch.

Let's start with this. As a novice trader, as you evaluate yourself - you are best placed to advance if you go through the course multiple times and when you think you have gotten a fair grasp of the concepts, move on to the encyclopedia and the daily setups on the BTC website and not the BPA website. The BPA markings are quite advanced and unless you have reasonable grasp of the fundamentals, it will be difficult for you to tally the markings of both websites. Do note, this suggestion is from most of the senior members and I have applied this religiously and rigorously. It works wonders.

Second, I would like to respectfully disagree with Water Buffalo. There are examples of Al scalping on 10 second charts. He has been practicing his method of PA for over the past 30-40 odd years. Having been in his trading room for a few days, I can tell you that his real-time calling out of PA is dead accurate. It is difficult for me to digest that he makes trivial mistakes(extremely rare if at all). He discusses the swing trader's perspective and the scalper's perspective. So, when it gets typed out in the format you are seeing from BPA markups, it becomes a bit difficult to differentiate what his actual notes were and what all situations he discussed. If you want to study his BPA markups, I would suggest it would be better to buy his BPA old recordings and see the videos instead of going into the notes, which in my opinion is a lot more difficult to make proper sense of.

Now coming to your doubt, do you see how he qualified the buy he talked about on the BPA website notes? He also mentions that the market should go above 7L which is a scalp target that was met soon after. If you have been studying his BTC markups, I'm sure you have come across him marking on charts as something like - probably low here or soon OR something like probable high here or soon. That is the case here. As you will see, the next leg of the bear channel turned out to be the LOD.

Market had started getting enough buying pressure that it was creating strong bull bars and stairs. So, if limit order bulls are making money(7, 14, 20), there is something wrong with the premise of a bear trend meaning either transition into TR or bull trend soon. So, one should look to buy. Now as per BPA notes, it was big enough of a bull bar that it will get a 2nd leg up. Do note however, he does mention at the end of his BPA notes, that AIBRE IF they are concerned about risk above high of bull bar AND sell below a bear bar COL. Meaning, he still does not think that the bulls have done enough to reverse the trend but it is a POSSIBILITY. Which makes sense, given how big a bear bar 21 was, a 2nd leg down could be likely, making a third leg down in the near channel and thereby forming a wedge quite likely. If someone buys and uses wide stop to scale in, this buy is fine for them. However, the BTC markups don't consider scaling in mostly as the general theme is to exit if the premise changes or forces strong enough to warrant a change is created and if the reversal attempt fails, enter again. So, naturally in this case, you don't find a buy marked on the BTC charts version.

What you need to understand is the management of the trade. If you buy it as a swing, then you are betting on it to be the LOD here or soon, else it does not make sense to be taking a weak swing setup. So, if you take this buy, you have to be prepared to use a wide stop (MM based on height of the strong bull bar could be one) and scale in lower. If instead, you are buying this using the low as stop, you have to treat it like a scalp and exit when the minimum objective is met as the FT was weak(that is price going above 7L).

Does this make sense? If you need clarification on some point, I am happy to discuss that.

Good luck with your studies!