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
Hi,
Could someone explain why context is bad in slide 9?
That doji signal bar is coming after a DT (highest high and the high of the doji before the first bear bar) and in last 6 bars only 1 bar is bull bar.
@shubbamgmail-com
First of all, thanks for your reply.
But isn't a H2 Buy setup always going to form some sort of double top? And isn't a PB allways goibg to be a small countertrend, so lack of bull bars? Also, that one bull bars is stronger than all of the bear bars in the PB
The only reason I could think of for this setup to be labeled as "bad context for trend resumption up", is that the PB/pause in the trend, is moving diagonally upwards, so probably BO to the downside. But personally, I principally see a Bull trend that is something between a BO and a tight micro bull channel, so probably a first reversal will be minor.
The resulting action to take, namely buying, stays the same. But I just want to know if I need to change my idea of a bad context situation.
Thanks again.
I was not actually counting it as H2, because after H1 there was a new H made and hence you could reset the bar count and then the bar in question would be H1. I was calling it DT in that sense. So what I meant was that The new H after the old H did not go very far so it was a DT and may be implies that bulls are running out of steam, at least in this leg, which turned out to be the case though, after a new H Wedge top took effect.
Although calling it H2 would also not be wrong, if we are calling it H2 then the only reason I can think of it being a weak context is the lack of bull bars in last few bars.
If someone has any other interpretations, would love to hear them..
P.S. Have attached the screenshot for reference.
A no-strong context for the bulls means it is going up but the PB can be deep so here you have a DB, which is a kind of H2, but the signal bar is weak, bears have a final flag (kind of DT) reversal, so maybe you get two legs down, specially because the bear bodies, although small and with tails, are growing and have micro-gaps, which is why Al gives the two possibilities, wait or buy and scale-in.
P.S. Have attached the screenshot for reference.
This is of good help to not having to go back and forth!
P.S. Have attached the screenshot for reference.
This is of good help to not having to go back and forth!
Yes. Will also strart doing that. Good idea.
And thanks for the above reflections.
