al-brooks-course
49F - Swing Trading Examples
Raw transcript and slide notes for 49F - Swing Trading Examples.
Overview
- Slides: 22
- Transcript segments: 443
- Status: 自动按 slide 时间线归档；核心概念和长期笔记可以在每个 slide 的
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Transcript 001
Time: 00:02
Bilingual Transcript
00:02 - 00:03
EN: This is Al Brooks.
00:03 - 00:05
EN: Thank you for watching the Brooks Trading Course.
00:05 - 00:09
EN: This is the sixth of six videos on swing trading examples.
Slide 001
Time: 00:11
Bilingual Transcript
00:14 - 00:18
EN: Sometimes the daily chart will be in a Buy The Close bull trend
00:18 - 00:21
EN: or a Sell The Close bear trend, and if it is,
00:21 - 00:26
EN: it often sets up trades for day traders on lower timeframe charts.
00:26 - 00:29
EN: For example, if it’s in a Buy The Close bull trend,
00:29 - 00:32
EN: there’s often a minor selloff early in the day
00:32 - 00:34
EN: and then a bull trend day for the remainder of the day.
00:34 - 00:39
EN: Day traders should therefore look to buy a reversal up from a minor selloff.
00:39 - 00:43
EN: If a daily chart is in a strong trend – for example, a Micro Channel,
00:43 - 00:45
EN: which means there are no pullbacks
00:45 - 00:47
EN: - traders will look to enter on the first pullback.
00:48 - 00:53
EN: For example, if there’s a bear Micro Channel, 4, 5, 6 bars without a pullback,
00:53 - 00:55
EN: traders will look to sell the first time
00:55 - 00:58
EN: the market goes above the high of a prior day.
00:59 - 01:03
EN: If you’re day trading, you look to sell a reversal down
01:03 - 01:07
EN: on a lower timeframe chart – a 5-minute chart, a 60-minute chart.
01:07 - 01:10
EN: If the market goes above yesterday’s high and you get a reversal,
01:10 - 01:13
EN: look to sell because the odds are the bear trend will resume.
01:14 - 01:18
EN: When the market’s in a Trading Range, there are often big bull trend bars near the top.
01:18 - 01:22
EN: Instead of buy the close, you should assume the rally will fail.
01:22 - 01:25
EN: That means that you should look to sell a reversal down.
01:26 - 01:29
EN: If you’re day trading and you see a reversal down early
01:29 - 01:34
EN: in the day on the 5-minute chart or 60-minute chart, it’s a sell.
01:34 - 01:38
EN: Likewise, if there’s a big bear bar near the bottom of the Trading Range
01:38 - 01:40
EN: on a daily chart and you’re day trading
01:40 - 01:44
EN: and you see an early reversal up, it’s a good buy for a swing.
01:45 - 01:50
EN: Finally, if you see support or resistance on a higher timeframe chart
01:50 - 01:53
EN: - for example, a daily chart or a 60-minute chart – and you’re a day trader
01:54 - 01:58
EN: and you see a reversal at that higher timeframe support or resistance,
01:58 - 02:00
EN: it often sets up a good swing trade.
Slide 002
Time: 02:01
Bilingual Transcript
02:04 - 02:06
EN: This is a daily chart.
02:06 - 02:07
EN: It’s in a strong bull trend.
02:12 - 02:17
EN: By the third or fourth bar here, fifth bar, you have to conclude the market’s
02:17 - 02:20
EN: in a Buy The Close bull trend, which means if you buy closes,
02:20 - 02:22
EN: you’re probably going to make money.
02:29 - 02:33
EN: Even when you have a strong bull trend and a series of strong bull bars,
02:33 - 02:36
EN: there’s usually a tail below the low of the bull bar,
02:36 - 02:40
EN: and 90% of the time that’s caused by a selloff that comes early in the day.
02:41 - 02:44
EN: 10% of the time the selloff comes later in the day.
02:49 - 02:53
EN: If you’re trading a 5-minute chart and you know the market’s in a Buy The Close
02:53 - 02:57
EN: bull trend on a higher timeframe chart, you should look for an early selloff
02:57 - 03:00
EN: that reverses up for a possible swing trade.
03:01 - 03:05
EN: You have to assume that each day is going to be higher and therefore each day
03:05 - 03:10
EN: will be a bull trend day, and you look for an early selloff to reverse up.
Slide 003
Time: 03:15
Bilingual Transcript
03:16 - 03:17
EN: For example, this day.
03:18 - 03:21
EN: This is that day, 5-minute chart.
03:21 - 03:26
EN: You expect a bull trend day, and therefore you expect an early low of the day.
03:30 - 03:33
EN: Here’s the open of the day, here’s the low of the day, and it reversed up.
03:33 - 03:37
EN: That created a small tail on the bottom of the daily chart.
03:37 - 03:39
EN: A bull bar closing on its high.
03:39 - 03:41
EN: You can buy above its high or you can wait
03:41 - 03:44
EN: until there are consecutive closes and buy that close.
03:44 - 03:46
EN: Here’s another pair of consecutive closes.
03:46 - 03:49
EN: You can buy that close, or you can look to buy a pullback.
03:49 - 03:53
EN: We have three pushes down – one, pullback, two, pullback, three
03:53 - 03:58
EN: - and then buy above a bull bar, expecting the day will be a bull day
03:58 - 04:02
EN: closing above its open and possibly a big bull trend day.
04:02 - 04:04
EN: This was a small bull trend day.
04:04 - 04:06
EN: The close is only slightly above the open.
04:07 - 04:10
EN: In any case, you know the daily chart is strong.
04:10 - 04:14
EN: We have a bull trend lasting for a lot of bars,
04:14 - 04:17
EN: and now we’re possibly in a Buy The Close bull trend.
04:17 - 04:18
EN: This is the third bar.
04:18 - 04:21
EN: By the fourth bar, it’s clearly a Buy The Close bull trend
04:21 - 04:23
EN: and the odds are it’s going higher.
04:28 - 04:30
EN: We have a gap up, a bull bar closing near its high.
04:30 - 04:33
EN: Reasonable to buy above its high, taking a chance
04:33 - 04:36
EN: that it’s going to be another bull trend day.
04:39 - 04:42
EN: Higher probability, you wait to buy the close
04:42 - 04:46
EN: of 2 consecutive strong bull bars, either here or here.
04:51 - 04:53
EN: Some traders like to buy pullbacks,
04:53 - 04:56
EN: and here we have a pullback to just below the Moving Average.
04:56 - 04:58
EN: Three pushes down, so it’s a Wedge bull flag.
04:58 - 05:03
EN: Buy above a bull bar, above this bar or above that bar, looking for a swing up.
Slide 004
Time: 05:05
Bilingual Transcript
05:09 - 05:13
EN: This is the second day, in this green box.
05:14 - 05:17
EN: Now we’ve had 3 consecutive bull bars and a breakout.
05:17 - 05:19
EN: Chances are this is going to be another bull day,
05:19 - 05:22
EN: and therefore if there’s a selloff early in the day,
05:22 - 05:26
EN: it’s probably going to fail and lead to a bull day.
05:26 - 05:28
EN: Here it led to a big bull trend day.
05:28 - 05:31
EN: Consecutive big bear bars, but still above the Moving Average
05:31 - 05:33
EN: and still above yesterday’s close.
05:33 - 05:35
EN: A good-looking bull bar here.
05:35 - 05:38
EN: Reasonable to take that buy, buying on a stop above here,
05:38 - 05:41
EN: or you could wait until it gets closer to the Moving Average
05:41 - 05:45
EN: and then look to buy above a good bull bar, which you have here.
05:45 - 05:49
EN: Bull bar closing on its high, Double Bottom at the Moving Average.
05:49 - 05:50
EN: In fact, it’s a Triangle.
05:50 - 05:55
EN: We have Lower Highs and Higher Lows, and all of the reversals
05:55 - 05:57
EN: are coming above the Moving Average,
05:57 - 06:01
EN: and there are many bull bars closing at or near their highs.
06:01 - 06:02
EN: Good Buying Pressure.
06:02 - 06:04
EN: Chances are, bull trend day.
06:14 - 06:18
EN: Always better to buy above a strong bull trend bar.
06:18 - 06:20
EN: Even though the early selloff was strong,
06:20 - 06:24
EN: the odds are you’re going to get an opening reversal up from support,
06:24 - 06:26
EN: usually around the Moving Average.
06:26 - 06:28
EN: Here, above the Moving Average.
06:28 - 06:30
EN: Here, at the Moving Average.
06:35 - 06:38
EN: You could also buy reversals up from pullbacks to the Moving Average,
06:39 - 06:43
EN: betting that the bull trend will continue on the 5-minute chart
06:43 - 06:45
EN: and on the daily chart.
Slide 005
Time: 06:50
Bilingual Transcript
06:51 - 06:56
EN: This is the third day in this box and the fifth day in the Buy The Close market.
06:56 - 07:00
EN: Again, the market repeatedly tried to sell off strongly on the open,
07:01 - 07:04
EN: but each time it found support at the Moving Average.
07:04 - 07:09
EN: Strong reversal up, strong reversal up, strong reversal, Double Bottom.
07:09 - 07:10
EN: You can call it a Triangle.
07:10 - 07:12
EN: You can call it a Double Bottom.
07:12 - 07:14
EN: You can call it a pullback from a Double Bottom.
07:14 - 07:15
EN: Does not matter.
07:15 - 07:18
EN: You’re getting strong reversals up after strong selloffs.
07:18 - 07:23
EN: Remember, on the open, 50% of strong moves up or down reverse,
07:23 - 07:28
EN: and therefore even if you see strong selloffs like this or this or this,
07:28 - 07:30
EN: 50% chance they’re going to reverse.
07:30 - 07:33
EN: Also, we keep getting reversals up from the Moving Average
07:33 - 07:36
EN: and we know we’re in a Buy The Close bull trend,
07:36 - 07:40
EN: and therefore there’s often an early selloff and then a rally.
07:40 - 07:42
EN: Here’s the open of the day.
07:42 - 07:44
EN: Repeatedly trying to sell off.
07:44 - 07:49
EN: You have to assume we’re going to keep reversing up and close above the open of the day.
07:49 - 07:51
EN: We had a pretty good bull trend day here.
07:55 - 07:58
EN: Failed bear breakout, big reversal, and it’s a High 2.
07:59 - 08:03
EN: High 1 here, yesterday, High 2 today at the Moving Average.
08:03 - 08:04
EN: Possible low of the day.
08:04 - 08:07
EN: In fact, it remained the low for the remainder of the day.
08:11 - 08:13
EN: Now we have a Double Bottom at the Moving Average.
08:13 - 08:15
EN: Good-looking buy signal bar.
08:15 - 08:20
EN: Another buy, and you can keep buying reversals up
08:20 - 08:23
EN: from pullbacks to the Moving Average all day long.
Slide 006
Time: 08:26
Bilingual Transcript
08:27 - 08:31
EN: The opposite is true if you have a Sell The Close bear trend.
08:31 - 08:33
EN: There’s often a tail on the top of the bar,
08:33 - 08:37
EN: and 90% of the time it’s caused by an early rally that reverses down.
08:38 - 08:41
EN: This is a daily chart of General Electric.
08:46 - 08:49
EN: At some point in here you have to conclude
08:49 - 08:51
EN: the market’s in a Sell The Close bear trend.
08:51 - 08:55
EN: The bulls tried to reverse up and the bears sold it at the Moving Average,
08:55 - 08:58
EN: and we got a strong trend resumption down.
09:04 - 09:06
EN: Even when you’re in a strong bear trend day,
09:06 - 09:09
EN: there’s usually a tail on the top of every bear bar,
09:09 - 09:13
EN: and 90% of the time it’s caused by an early rally
09:13 - 09:16
EN: that reverses down – an opening reversal down.
09:16 - 09:21
EN: 10% of the time the tail can be caused by a rally later in the day,
09:21 - 09:23
EN: even if the day closes on its low.
09:30 - 09:33
EN: If you’re a day trader trading on a smaller timeframe chart,
09:33 - 09:36
EN: like a 5-minute chart, you should be looking for an early rally,
09:36 - 09:40
EN: expecting an opening reversal down for a swing trade down
09:40 - 09:41
EN: for the remainder of the day.
Slide 007
Time: 09:45
Bilingual Transcript
09:49 - 09:51
EN: This is that first day in that series,
09:51 - 09:54
EN: and the bulls have 2 very big bull trend bars,
09:54 - 09:58
EN: but they simply tested yesterday’s close and the Moving Average.
09:58 - 10:00
EN: A good bear bar closing on its low.
10:00 - 10:03
EN: You can sell below it, and now we have a Micro Double Top.
10:03 - 10:06
EN: You can sell below that bear bar or this bear bar
10:06 - 10:09
EN: or any bear bar testing the Moving Average.
10:10 - 10:14
EN: Higher probability that your shorts are going to be successful
10:14 - 10:17
EN: because you know the market’s in a strong bear trend on the daily chart,
10:17 - 10:21
EN: and it’s beginning to form a Sell The Close bear trend.
10:21 - 10:25
EN: You have to assume that every day is going to close below the open of the day
10:25 - 10:28
EN: and that you’ll get a swing down at some point during the day.
10:29 - 10:32
EN: Sell rallies, especially early rallies.
10:39 - 10:42
EN: Always better to be selling below bear bars, especially bear bars
10:42 - 10:46
EN: around the Moving Average that close below the Moving Average.
10:54 - 10:56
EN: Here’s the next day in that series.
Slide 008
Time: 10:55
Bilingual Transcript
10:57 - 11:00
EN: A strong selloff in a bear trend.
11:00 - 11:03
EN: We’re in a bear trend on the daily chart, we have a strong selloff
11:03 - 11:06
EN: - but no matter how strong a selloff is, there’s always a 50% chance
11:06 - 11:09
EN: that any strong move on the open is going to reverse.
11:09 - 11:13
EN: Strong selloff, 50% chance it’s going to reverse.
11:13 - 11:16
EN: Strong rally, 50% chance it’s going to reverse down.
11:19 - 11:22
EN: We have a Double Top, slightly Lower High.
11:22 - 11:23
EN: Little bit more bearish.
11:23 - 11:25
EN: We have a bear bar closing near its low.
11:25 - 11:30
EN: Reasonable to sell for a Double Top opening reversal, test of yesterday’s close,
11:30 - 11:34
EN: test of the Moving Average for a possible swing down.
11:37 - 11:40
EN: Later in the day we have a small Double Top, slightly Lower High.
11:40 - 11:43
EN: Most Double Top bear flags are not exact.
11:43 - 11:47
EN: Very often the second high is below the first high.
11:47 - 11:50
EN: Less often, it’s slightly above the first high.
11:55 - 11:58
EN: When the market’s in a Micro Channel on the daily chart,
Slide 009
Time: 11:55
Bilingual Transcript
11:58 - 12:00
EN: traders will enter on the first pullback.
12:01 - 12:04
EN: Therefore, a day trader who sees a bull Micro Channel
12:04 - 12:07
EN: will look to buy below yesterday’s low.
Slide 010
Time: 12:08
Bilingual Transcript
12:10 - 12:14
EN: We have a Micro Channel here on the daily chart and again here.
12:15 - 12:17
EN: A pullback here, that’s the end of the Micro Channel.
12:17 - 12:19
EN: A pullback here.
12:19 - 12:21
EN: It went below the low of the prior bar,
12:21 - 12:23
EN: and therefore the Micro Channel ended at this bar.
12:31 - 12:34
EN: Once the market’s clearly in a Micro Channel
12:34 - 12:37
EN: - usually by the end of the third, fourth, or fifth bar
12:37 - 12:40
EN: - the odds are high traders will buy the first reversal down.
12:40 - 12:43
EN: Sometimes the reversal will last 2 or 3 bars,
12:43 - 12:47
EN: but traders are still looking to buy below the low of the prior bar.
12:56 - 13:00
EN: If you’re a day trader, you’re going to look for the reversal
13:00 - 13:04
EN: below yesterday’s low to fail and for the bull trend to resume.
13:04 - 13:07
EN: Therefore you should look to buy a reversal up once
13:07 - 13:10
EN: the market falls below yesterday’s low.
13:16 - 13:19
EN: Sometimes the pullback will last 2 or 3 days.
13:19 - 13:23
EN: If you can trade a small enough position to allow you to use an appropriate stop,
13:23 - 13:26
EN: you can hold despite a 2 to 3 day pullback,
13:26 - 13:28
EN: confident that the market will go higher.
13:29 - 13:31
EN: Initial stop might be all the way down here.
13:32 - 13:33
EN: You’re never going to risk that much.
13:33 - 13:37
EN: You might risk two to three times the size of an average day,
13:37 - 13:39
EN: so you might be putting a stop here.
13:39 - 13:43
EN: You simply have to trade small enough so that you can use the appropriate stop.
Slide 011
Time: 13:45
Bilingual Transcript
13:51 - 13:53
EN: We have a 5 bar bull Micro Channel.
13:53 - 13:57
EN: Traders on the daily chart will look to buy at and below yesterday’s low,
13:57 - 13:59
EN: and if you’re trading a 5-minute chart,
13:59 - 14:02
EN: you’ll look for reversals up from below yesterday’s low.
14:02 - 14:04
EN: Here, we reversed up from below yesterday’s low,
14:04 - 14:10
EN: but we formed a Wedge bear flag opening reversal at the Moving Average.
14:10 - 14:13
EN: If you took this buy, you’re going to get out below that bear bar
14:13 - 14:15
EN: because we might be getting a bear trend day.
14:16 - 14:20
EN: If you’re a bear, you can sell this as an opening reversal up
14:20 - 14:22
EN: to the Moving Average, a Wedge.
14:22 - 14:24
EN: Three pushes down – one, two, and then three.
14:24 - 14:27
EN: Sell below the bear bar or the second entry short.
14:28 - 14:31
EN: However, you know the market’s in a bull Micro Channel
14:31 - 14:35
EN: and you know the market’s going to try to reverse from below yesterday’s low.
14:36 - 14:40
EN: Here, despite the strong selloff, it’s simply a big High 2 bull flag.
14:40 - 14:43
EN: Two legs down – one, pullback, two
14:43 - 14:46
EN: - and you know there are buyers below yesterday’s low.
14:46 - 14:48
EN: We have a bull bar closing on its high.
14:48 - 14:51
EN: You can buy above this bull bar, or you can wait until you see
14:51 - 14:54
EN: a pair of consecutive strong bull bars and then take that buy.
14:54 - 14:57
EN: This rally totally reversed this selloff.
14:57 - 15:00
EN: Chances are we’re going higher, maybe for a Measured Move up
15:00 - 15:02
EN: based upon the height of this rally.
15:07 - 15:10
EN: Gap down and reversal up from below yesterday’s low.
15:10 - 15:13
EN: Reasonable buy here, reasonable buy here.
15:17 - 15:19
EN: But when you see the bear bar at the Moving Average
15:19 - 15:23
EN: and then the Micro Double top here, it’s better to get out of longs
15:23 - 15:26
EN: and look to buy again on another buy signal.
15:26 - 15:30
EN: Bears will take this as a short, hoping for a swing down.
15:33 - 15:38
EN: At this point we have a second entry buy, a good stop entry buy.
Slide 012
Time: 15:40
Bilingual Transcript
15:42 - 15:44
EN: This is a daily chart of the U.S. dollar
15:44 - 15:47
EN: versus the Canadian dollar, and it’s clearly in a bear trend.
15:48 - 15:51
EN: It’s in a Micro Channel here for 4 bars
15:51 - 15:53
EN: and a bigger Micro Channel here for 10 bars.
15:53 - 15:56
EN: It began with this high and it ended
15:56 - 15:59
EN: when this bar went above the high of that bar.
16:07 - 16:10
EN: Every high at or below the high of the prior bar.
16:10 - 16:13
EN: When that’s the case, traders will be eager
16:13 - 16:16
EN: to sell above yesterday’s high when they finally get a chance.
16:16 - 16:19
EN: If you’re a day trader and you look at the daily chart
16:19 - 16:22
EN: and you see the bear Micro Channel, you’re going to look to sell
16:22 - 16:27
EN: at yesterday’s high or on a reversal down from above yesterday’s high.
16:32 - 16:34
EN: It doesn’t matter if you’re trading the 5-minute chart
16:34 - 16:36
EN: or the 15-minute chart or the 60-minute chart.
16:37 - 16:41
EN: Once it goes above yesterday’s high, you have to be looking for a reversal down.
16:41 - 16:45
EN: The odds are high traders who are trading the daily chart will sell
16:45 - 16:49
EN: above yesterday’s high, and therefore the bear trend is likely to resume.
16:55 - 16:57
EN: Sometimes the pullback can last a few days.
16:57 - 16:58
EN: Here it’s only 1 day.
16:58 - 17:01
EN: It went briefly above yesterday’s high and sold off.
17:01 - 17:05
EN: You have to trade small enough so that you can use an appropriate stop.
17:05 - 17:09
EN: You could put a stop all the way up here, but that’s pretty far up.
17:10 - 17:13
EN: Chances are the first reversal up is only going to last 1, 2, or 3 days
17:13 - 17:17
EN: and not go much more than the size of an average recent day.
17:17 - 17:20
EN: Therefore you could use a tighter stop.
Slide 013
Time: 17:23
Bilingual Transcript
17:25 - 17:28
EN: This is this bear day.
17:28 - 17:33
EN: You can see yesterday, when the market went above yesterday’s high, traders sold.
17:33 - 17:36
EN: It went back above yesterday’s high, they sold again,
17:36 - 17:40
EN: betting that the bear trend will resume, and the result was a bear trend day.
17:40 - 17:44
EN: It took a Double Top, but eventually it became a bear trend day.
17:51 - 17:55
EN: Traders look to sell a reversal down from above yesterday’s high.
17:55 - 17:59
EN: We have a bear bar here, failed breakout yesterday’s high, reasonable short.
17:59 - 18:01
EN: The market rallied again.
18:01 - 18:05
EN: If you get out of your short here or here, it gave you another opportunity
18:05 - 18:08
EN: to sell here, again above yesterday’s high.
18:08 - 18:11
EN: A good-looking bear bar closing on its low.
18:11 - 18:13
EN: Reasonable sell for a swing down.
18:18 - 18:22
EN: When the market’s in a Trading Range on a higher timeframe chart,
Slide 014
Time: 18:20
Bilingual Transcript
18:22 - 18:26
EN: like a daily chart, and you see big bull trend bars near the top,
18:26 - 18:29
EN: those are Sell The Close, not Buy The Close.
18:29 - 18:33
EN: If you see big bear bars closing near their lows near the bottom
18:33 - 18:36
EN: of the Trading Range, traders should be looking to buy a reversal up.
18:37 - 18:40
EN: If you’re a day trader and you see a big bear bar near the low
18:40 - 18:45
EN: of the Trading Range, you should look for a reversal up for a day trade.
18:45 - 18:49
EN: The day trade may turn into a swing trade over the next 2 or 3 days.
Slide 015
Time: 18:50
Bilingual Transcript
18:52 - 18:55
EN: This is the Euro versus the yen daily chart.
18:55 - 18:57
EN: Clearly in a Trading Range.
18:57 - 19:00
EN: There are big bull bars near the top, but look at the follow-through.
19:00 - 19:02
EN: You’ve got reversals.
19:02 - 19:06
EN: There are big bear bars near the bottom, and look what happened.
19:06 - 19:09
EN: Instead of a Sell The Close bear trend, we got reversals.
19:14 - 19:16
EN: Remember my 80% rule.
19:16 - 19:21
EN: Markets have inertia, and they tend to continue to do what they’ve been doing.
19:21 - 19:25
EN: If they’re in a Trading Range, you have to assume 80% chance
19:25 - 19:28
EN: every attempt to break out will reverse.
19:32 - 19:36
EN: Because it’s clearly in a bear trend, instead of buying strong bull closes
19:36 - 19:40
EN: near the top, traders will be selling looking for reversals down.
19:40 - 19:44
EN: Instead of selling strong bear bars near the bottom,
19:44 - 19:48
EN: instead you should be buying them or looking for a reversal up.
19:54 - 19:57
EN: At the bottom you look for reversals up.
19:57 - 20:01
EN: At the top you expect the bull breakout attempts to fail and reverse down.
20:08 - 20:11
EN: If you’re a day trader and you see a big bear bar,
20:11 - 20:13
EN: the next day you should look for a reversal up.
20:13 - 20:18
EN: If you see a big bull bar, the next day you should look to sell a reversal down.
20:26 - 20:31
EN: If you buy, you can hold for a test back up to the middle of the Trading Range.
20:31 - 20:35
EN: If you sell, you can hold for a test back down to the middle to the range.
Slide 016
Time: 20:40
Bilingual Transcript
20:41 - 20:45
EN: This is the 60-minute chart of this Trading Range.
20:45 - 20:46
EN: This is the big bull day.
20:46 - 20:50
EN: In green, this is the big bull day, and this is the next day.
20:55 - 20:56
EN: Micro Double Top.
20:56 - 20:58
EN: We went up and down, up and down.
20:58 - 21:00
EN: Very good-looking bear bar closing on its low.
21:01 - 21:04
EN: Reasonable to sell on a stop below that low looking for a swing down.
21:04 - 21:06
EN: You could’ve made about 100 pips.
21:07 - 21:11
EN: You would make more if you held for several additional days.
Slide 017
Time: 21:15
Bilingual Transcript
21:18 - 21:20
EN: We’re at the bottom of the range and we have a big bear bar.
21:21 - 21:25
EN: That is this day, in the red box.
21:25 - 21:26
EN: 60-minute chart.
21:26 - 21:29
EN: You have to assume the bear breakout attempt will fail,
21:29 - 21:32
EN: and therefore traders should look to buy a reversal up.
21:36 - 21:38
EN: If you’re a day trader trading on the 60-minute chart,
21:38 - 21:40
EN: here you’re getting a good reversal up.
21:40 - 21:43
EN: Reasonable to buy on a stop above the high of that bar
21:43 - 21:46
EN: - a bull bar closing on its high, 2 bar reversal,
21:46 - 21:51
EN: failed breakout yesterday’s low at the bottom of a Trading Range – the buy zone.
Slide 018
Time: 21:55
Bilingual Transcript
21:56 - 22:00
EN: If you’re a day trader, it’s useful to look at higher timeframe support
22:00 - 22:03
EN: and resistance and look for reversals.
Slide 019
Time: 22:03
Bilingual Transcript
22:12 - 22:14
EN: Strong bull trend on the 60-minute chart.
22:15 - 22:18
EN: Traders bought the Moving Average here and they bought the Moving Average here.
22:18 - 22:21
EN: Even though this is a very strong selloff,
22:21 - 22:24
EN: it was simply a sell vacuum test of support.
22:24 - 22:27
EN: If you’re a day trader trading the 5-minute chart,
22:27 - 22:32
EN: you have to be looking for reversals up around the 60-minute Moving Average.
22:36 - 22:39
EN: Bulls have been willing to buy far above an average price.
22:40 - 22:44
EN: When it finally gets down to the average price, it’s at a discount,
22:44 - 22:48
EN: and they’ll buy aggressively looking for a resumption of the bull trend.
22:56 - 22:59
EN: You can also look for support and resistance on daily, weekly,
22:59 - 23:03
EN: and even monthly charts, but those higher timeframe support
23:03 - 23:06
EN: tests come much less often.
23:11 - 23:13
EN: Support level, average price.
23:13 - 23:17
EN: Even when there’s a strong selloff like this, traders will look to buy.
23:17 - 23:20
EN: Bears will look to buy back their shorts, bulls will look to buy
23:20 - 23:23
EN: looking for a resumption of the bull trend.
23:24 - 23:28
EN: Every reversal up on a higher timeframe chart begins
23:28 - 23:31
EN: with a reversal up on a smaller timeframe chart,
23:31 - 23:34
EN: and therefore if you’re a day trader trading the 5-minute chart
23:34 - 23:38
EN: and you know the market’s pulling back to the 60-minute Moving Average,
23:38 - 23:41
EN: you look to buy a reversal up on the 5-minute chart.
23:51 - 23:52
EN: This is a bull trend.
23:52 - 23:57
EN: If it were a bear trend, traders would look to sell any rally up to resistance.
23:57 - 24:01
EN: If you’re day trading on the 5-minute chart and you’re taking trades
24:01 - 24:06
EN: based upon the 60-minute chart, you’re actually taking a 60-minute trade
24:06 - 24:09
EN: and the 5-minute chart is simply an earlier entry.
Slide 020
Time: 24:15
Bilingual Transcript
24:18 - 24:21
EN: Here’s a strong selloff on the 60-minute chart
24:21 - 24:25
EN: and a reversal up at the Moving Average, and this is that day.
24:26 - 24:27
EN: Strong bear trend.
24:27 - 24:31
EN: If you’re day trading the 5-minute chart, you’re selling all day long.
24:31 - 24:34
EN: However, when it drops below that 60-minute Moving Average,
24:34 - 24:37
EN: you have to be looking to buy a reversal up.
24:38 - 24:42
EN: This is the 60-minute Moving Average plotted on the 5-minute chart.
24:42 - 24:43
EN: It’s this line.
24:44 - 24:46
EN: This is that same line on the 5-minute chart.
24:46 - 24:49
EN: The market dipped below it, reversed up.
24:49 - 24:51
EN: Market dipped below it, reversed up.
24:52 - 24:55
EN: Since you know the 60-minute chart is in a strong bull trend,
24:55 - 24:57
EN: you know there’ll be buyers at the Moving Average.
24:58 - 25:01
EN: If you’re trading the 5-minute chart, you’re selling all day,
25:01 - 25:04
EN: but you know it’s going to try to reverse at the 60-minute Moving Average.
25:04 - 25:08
EN: You’ve got to buy back your shorts or even go long.
25:09 - 25:12
EN: The bulls tried to form a Wedge bull flag here.
25:12 - 25:16
EN: Instead we got a bear breakout, and it fell for about a Measured Move down.
25:22 - 25:25
EN: 5-minute chart, strong bear trend.
25:25 - 25:30
EN: It’s at support, 60-minute Moving Average, but you need a strong buy setup
25:30 - 25:33
EN: if you’re going to be buying in a strong bear trend on the 5-minute chart.
25:33 - 25:35
EN: You want a good buy signal bar.
25:35 - 25:38
EN: Here we have 3 bar reversal down and up.
25:38 - 25:40
EN: A bull bar closing at its high.
25:41 - 25:44
EN: We have a series of Sell Climaxes – here, here, here
25:44 - 25:47
EN: - and therefore a possible Parabolic Wedge Bottom,
25:47 - 25:51
EN: and the market tried to bottom here, broke to the down side,
25:51 - 25:53
EN: and we’re just about at a Measured Move down
25:53 - 25:57
EN: based upon the height of this high to that bottom attempt.
26:00 - 26:02
EN: In fact, it’s an exact Measured Move down.
26:02 - 26:07
EN: So support here, support at the Moving Average, Parabolic Wedge.
26:07 - 26:09
EN: Reasonable to look to buy above a good bull bar.
26:15 - 26:18
EN: So you buy, you get filled on this little bear doji bar
26:18 - 26:19
EN: when it went above the high of that bull bar.
26:20 - 26:22
EN: It’s a 60-minute trade.
26:22 - 26:25
EN: If you want, you can hold for a resumption of the bull trend.
26:25 - 26:29
EN: Here, if you’re a 5-minute trader, you’ll get out around the Moving Average
26:29 - 26:31
EN: or somewhere near the end of the day.
26:31 - 26:36
EN: But if you want you could also hold a part, expecting the bull trend to resume.
26:40 - 26:45
EN: This is a daily chart of the Euro versus the British pound, and it’s a bear trend.
Slide 021
Time: 26:40
Bilingual Transcript
26:45 - 26:48
EN: Therefore traders will look to sell at resistance,
26:48 - 26:50
EN: like at the 50-day Moving Average.
26:50 - 26:53
EN: Also the test of the most recent Sell Climax
26:53 - 26:56
EN: and around a 50% correction of the selloff.
26:57 - 27:01
EN: If you’re a day trader, you know the market’s at resistance on the daily chart.
27:01 - 27:05
EN: Therefore you can look to sell a reversal down on the 5-minute chart,
27:05 - 27:09
EN: 60-minute chart, whatever chart you’re trading as a day trader.
27:17 - 27:21
EN: This big bear day is this day on the 5-minute chart.
27:21 - 27:26
EN: Strong rally early, but it was a buy vacuum test of resistance.
27:26 - 27:30
EN: This is the 50-day Moving Average plotted on the 5-minute chart.
27:30 - 27:32
EN: Here it is on the daily chart,
27:32 - 27:38
EN: and it’s also a test of that Sell Climax high and about a 50% pullback.
27:38 - 27:42
EN: Traders will look for a reversal down at that resistance,
27:42 - 27:48
EN: especially after a series of consecutive Buy Climaxes – one, two, three, four.
27:48 - 27:50
EN: You can look at it as a Parabolic Wedge Top.
27:50 - 27:53
EN: Here, Trading Range late in a bull trend.
27:53 - 27:56
EN: Possible Final Flag, and then we have a very good sell signal bar
27:56 - 27:58
EN: here on the 5-minute chart.
28:06 - 28:10
EN: Reasonable to sell on a reversal down below the low of that bear bar.
28:14 - 28:16
EN: If you want higher probability,
28:16 - 28:21
EN: here we have a huge bear bar breaking far below a potential bull flag here.
28:22 - 28:24
EN: The odds are we’re going lower.
28:24 - 28:27
EN: Reasonable to sell that close or the close of the follow-through bar.
28:27 - 28:29
EN: The bulls are giving up,
28:29 - 28:33
EN: and chances are we’ll get at least a second leg down, maybe more.
28:38 - 28:43
EN: When the market’s in a Buy The Close bull trend on the daily chart,
Slide 022
Time: 28:40
Bilingual Transcript
28:43 - 28:47
EN: it often has a small early selloff creating a tail on the bottom
28:47 - 28:48
EN: of the bar on the daily chart.
28:48 - 28:51
EN: Therefore if you’re a day trader trading on the 5-minute chart,
28:51 - 28:54
EN: you look to buy a reversal up from an early selloff.
28:55 - 28:59
EN: The opposite’s true if the daily chart is in a Sell The Close bear trend.
28:59 - 29:03
EN: There’s often an early rally that fails and forms an early high of the day.
29:03 - 29:06
EN: Day traders will look to sell the reversal down.
29:07 - 29:10
EN: If a daily chart is in a bull Micro Channel,
29:10 - 29:13
EN: chances are there’ll be buyers below yesterday’s low.
29:13 - 29:16
EN: If you’re a day trader and the market’s below yesterday’s low,
29:16 - 29:18
EN: you buy a reversal up.
29:18 - 29:20
EN: If it’s in a Sell The Close bear trend,
29:20 - 29:23
EN: you look to sell a reversal down from above yesterday’s high.
29:24 - 29:27
EN: If the market’s in a Trading Range on the daily chart,
29:27 - 29:31
EN: you should assume that big bull trend bars near the top will fail
29:31 - 29:34
EN: and not become a Buy The Close bull trend.
29:34 - 29:37
EN: In fact, traders will look to sell the close, or on the next day,
29:37 - 29:40
EN: they’ll look to sell an early reversal down.
29:40 - 29:44
EN: If you’re a day trader, you look to sell a reversal down on the next day.
29:45 - 29:49
EN: Likewise, if there’s a big bear bar closing near the bottom of the Trading Range,
29:49 - 29:54
EN: if you’re a day trader you look to buy an early reversal up on the next day.
29:54 - 29:59
EN: Finally, if there’s support or resistance on a higher timeframe chart,
29:59 - 30:02
EN: you can look for a reversal at that support
30:02 - 30:05
EN: or resistance on a smaller timeframe chart.
30:09 - 30:10
EN: I’m Al Brooks.
30:10 - 30:13
EN: Thank you for watching the Brooks Trading Course.
30:13 - 30:17
EN: This is the sixth of six videos on swing trading examples.