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so by prior definition why is the count resetting?
Because the PB was over already. Once the trend resumes, and it always does so below the prior highest high, the count is reset.
but can count resetting be based on market structure?
You need to read the context and see what is happening and count accordingly. After the H2, high probability the MKT was again trending.
OK, let me ask this differently. Al says in his videos - different computers see things differently. So imagine I want to program a computer with these H1, H2, L1, L2 rules. So the computer is given a series of bars - OHLC and that's all, and every bar it is deciding whether it is one of these reversals. So for some of the things at hand, what would be some rules for the count reset - you have mentioned "trend resumption", how would I describe that to the computer - one could say when there are two HHs and two HLs then the trend is back on. You have mentioned count reset after the highest high of the most recent trend. So what would be the rules when bar 21 has formed, and no bars to the right? [To be clear, I am not saying there are precise rules, nothing works all the time]
OK, let me ask this differently. Al says in his videos - different computers see things differently. So imagine I want to program a computer with these H1, H2, L1, L2 rules. So the computer is given a series of bars - OHLC and that's all, and every bar it is deciding whether it is one of these reversals. So for some of the things at hand, what would be some rules for the count reset - you have mentioned "trend resumption", how would I describe that to the computer
Sorry, I have no idea how to tell a computer that the trend has resumed.
one could say when there are two HHs and two HLs then the trend is back on
Not really, it depends on the context. With HHs and HLs the MKT is going up, yes, but you need the whole context to know if it is going up within a leg up that will be followed by a leg down, or if it is actually trending up, and it won't look back. This is why, I guess, it can't be easily programmed. I don't know whether the computers running trading algos use PA in the same way we do, but I doubt it.
You have mentioned count reset after the highest high of the most recent trend.
If I said that, it is wrong so I guess I didn't explain it well. I said or wanted to say that you count the PBs from the high until the MKT resumes!
So what would be the rules when bar 21 has formed, and no bars to the right?
Strategy for 18H buy:
Entry: 18H is a decent DB swing buy, 21 is a H1 but doji and 19 big tail at 16H so it is a weak buy. I would not take it.
* Stop-loss: the best location is still 1L, allowing for a second leg down after 9-12.
* Exit: I would hold at least either until 9H (TR premise) or some kind of MM up (trend premise), like MM 9-12, DB 12 18 neckline or leg1=leg2 1-10-12, but I would exit as soon as the bears created a decent swing setup at resistance.
Ok. Thanks for being patient with me, and again thanks for taking the time to reply in such detail.
