The beginning of each week, Monday morning is before market opens, I find the last week's trading range. Monday, Tuesday, Wednesday, Thursday, Friday. I mark it in a box. Okay? Is I mark the high and I mark the low. I have the um midpoint. Then this week starts this week started at the top. I have bunch of, you know, sell zones here. Obviously, you do not want to buy at the top of a trading range unless it's Breaking out. Even a breakout could fail and it could reverse back down. There are a couple of things I'm
seeing there, right? I have a trend line here. Market could be wanting to come down here. We have one, two, three push top. We need a double top to reverse this and turn it into a major trend reversal. Now is it can come all the way down here? I don't know. But look what happened here. We have a tight bull channel. It breaks even though it comes down pretty Significantly is it ends up going right back up. Why tight bull channels will always going to go back up and test the highs. Tight bare channels will
always going to just like here there's a bare channel here is breakout right breaks out breaks that trend line. Think about it. There's a trend line and it comes back. It tests here and then it makes a double bottom. Then the major trend reversal begins. This is no different. So this week uh we started is bull's Trying to resume the trend. We go up. Now we're at the top of a trading range. It's also bull flag. Bull flags will fail at the top of a trading range. Anyone bought low, any institution will actually start to
take profit there before it they expect a breakout. So is we do have a wedge top. We do have a double top and the bears are trying to get a lower high. If you get this lower high is that starts the major trend reversal. It's not right now. This is Hourly. It's trying to close as a second entry short. So it's trying to come down to first to here. If we start to get bare bars closing below 79% then that's your target and the 50% around this area will be your target. after hours we might
actually sell a little bit. We might actually come down. I don't know. But how does that translate to a today's price action? All right. So, we gapped out. We gapped up pretty significantly. Okay. This is way too up and the first Bar is actually a bare bar. So, what does this mean? Is it means no one's going to agree to buy here? This is just too high. Plus, if you squeeze a little bit, have a little bird's eye view. Remember, at the weekly, we're at the top of last week's high. No one's going to buy
at the top of a trading range. That's a place for us to sell and at least come back down 33%, 50%. Maybe even come all the way down. I don't know. Right now, Um market um opened up way too much gap up. So if it's a big big gap up generally is at the open I take about uh 19 bars from here and one bar there. So it's a 20 bar. So that was is let's see 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10.
So you should be using that not that one. Uh that is your 20 bar trading range. Okay. So, where is my fair uh where is my um fair price? Fair price is right here. So, I might wait for bulls um to actually wait and bears to bring The price back down to here and see if they buy. But here's something else. I have this level. This is a 33%. This is a 50% pullback. Sometimes you get those fair order uh fair buy orders right here at the 33%. Once the bear bar closes below the threshold,
that means it's going to come down. So if I start the sell is below bar one or the close of one, I'm going to take a profit here. I'm always going to expect price to come down here. But Look what happened. We came down. We tag never closed bar three lower. So this is actually a sell from the open. This is actually a trend bare trend from the open. But is it cannot close below 33%. So it second bar trying now it's making a micro double bottom. I don't like this. Right. So no one would
like that. Is every bear looking for the 50% test is it's actually disappointed. So what do you think they're going to do? You got three bear bars. You should be Expecting sideways and down price action. Right? So that's what I would expect. So I would that means I should be looking for a bare flag, right? I have a bit of a gap here. I have a three bars. So, it's going sideways up, right? So, you got two bull bars is bears tried to sell again, failed, and then the bulls showed up. If I'm a bull
and uh if I buy right, is by bar four. Now, problem buying bar I'm going to get rid of this for a minute. If I buy bar four, Right, is it's not look at the bodies come after that, right? Say I put my stop here. I want to buy the first buy. This is first buy. And you're buying against the bare gap body. And there's also resistance here. I don't want to buy here. Why? Um not you can buy one tick above looking for price to get to this high that low. That's a resistance. But
problem here is this. You should be measuring for your target. If you buy, you can buy above four. But for the Measurement okay measured move target should be look close of four and immediately is open of five is where buyers it's telling you that's where the buyers and and then it comes down to the 50% pullback buyers show up then you get your second leg up and uh you get your uh measured move target. But if you measure from here that's not going to help you. You're going to end up waiting for a pullback again.
You're going to Have to scale in again and hope that it it would go back and give you that target. You don't know. You don't know because that's how you should be measuring because you're in a trading range here. Now, another thing is you don't need to measure. If you buy is bar four, it's an outside up bar. It low is lower than the bar three and it close above bar three. So, its high is higher than the um bar three. That's an outside up bar with a really decent close. Uh Bull's probably going to
buy the close by one tick above. Where's your resistance? Your resistance is the low of that bar and the high of that bar. But because there's a gap here and um price is I mean look at the ATR. ATR was at that time 24 and a half points. So it's probably going to breach but this is actually resistance. Okay. So, uh, this is resistance. As long as bulls don't close above the resistance, a bull body, They're never going to reach here. If they were to close bar 7, uh, right up, I would have said don't
sell anything because it could come down and then might go back up and test the one high and get a breakout, right? Is or make a double top and then sell. Since is bar seven went up, is bar eight try to go up? Nope, that's it. So we got a gap body here. We got a strong close. So from the lower third the midpoint this is extension. This is resistance. Okay. This is resistance from the is one low to two high is even if we breach the resistance that's that's still a buffer area. It could
still sell and the bears start to sell. Now you take profit there because it's probably going to come back down. Why? Because bears were selling. They are stuck underneath bar three. Bar four went one tick below bar three and uh it trapped those bears selling. So those bears will sell higher and they will want to come down as low as to bar Three. But too many gip too too many um uh wicks uh too many wicks means you're in in limit order market. So that means there are buyers waiting. we may not be able to
reach. So what do you do? Well, if you're barren, you're stuck here. You sell. Where do you sell? Well, you could sell approximately um the open 02. Okay, then this would be your break even. Now, look what happened. Market came down, gave you the break even. Couldn't even close the bare Body to go further down. So, this right here is a is sign. Okay. Anybody who sold maybe this area very tight area in somewhere inside there. Okay, maybe above two but they sold right there. So you measure from there. Do you see a bare body
closing below 50%. No. That means is bar 10 reached there and then closed there. Okay, that means it's no longer coming down here. It's testing the bad buy signal bar, but that's all you're going to get. So now is bull's Got a leg one pull back is leg two pull back they want the leg three sometimes you get these leg three um um actually complex is twolegged move and uh that's what you're getting right there leg one pull back leg two. So what does this mean? That means you see this failing to close below that
average price. You're not going to get your full break even. That's done. Especially if you get a bull bar after that and it's an inside bar, they're going to buy one tick Above. That also happens to be a second entry long is bulls. Okay, so second entry long high two bulls are buying. They got a really nice spot. They also bought above 12 is they're targeting the is high and they're targeting the prior highs. Okay, good for them, right? So is what did they do? Well, they went up there, but look how much time it
took them to get up here. So, this is now a trading range. So, therefore, there's sellers above at the top of a trading Range. Probably buyers some here. And those buyers already showed up. So, anybody bought at the lower will take profit there. Okay. Then what? Well, you wait. Market gets there, you take some profit. If you're looking for a breakout, at least leave a runner, one contract. If the market shows you a strong um sell order, okay, because we can get a a double top or wedge top. Some will say this is a double
top, some will say this is a wedge top. 1 2 3 is You can have if you ever heard L explain he has explained this many many times over the years is and it's in in his course veg tops can be perfect right in an angle right is one higher than the other one and then you get quick double top lower high and then it reverses down to these levels. Sometimes you get this. It truncate it right like that and comes down like that. Or um sometimes you get this one lower than the other one.
You get a breakout the overshoot. That's What we have actually. No, this is an overshoot, but it's overshoot from here. Sometimes you get this like that. That's still a wedge top. One of them is an undershoot. The other one is identical or somewhere there. These are all wedge tops. Okay. just variations. So, uh where do you think the is what do you do if you're still long? You see bar 18. What is bar 18? Why do we say bar 18 could sell? Could be a reversal. That's because 90 minutes passed. Okay. Look, Market was long
on Friday. It was bullish. So, probably on Monday, 50% chance it's going to actually continue. It will try to continue to go up. 75% chance for hour and a half two hours sideways price action before it reverses back down. So that hour and a half okay is is actually is 90 minutes. So 90 minutes market went first went up tried to go up but couldn't fulfill it but it did break out at the open and then came down. So this is a sideways price action Lasted 90 minutes. Now come around bar 18. Now it shows
you a really nice sell signal bar and uh it they try to sell it, right? So second bear bar. That right there is actually uh two consecutive bear bars. You can sell. You can do two things. At the open we had bar one and two. I would have measured my I would have measured my is measured move from there. Hold on. I'm right. So, this was my measured move. Oh my gosh. Okay, here we go. I must be tired. This was my measured move, right? I said, well, it's probably going to come down here. But
what I measured it's is two bear bars. Both of them are closing decent is one of them closed slightly below its midpoint, but still on its low on the lower third. The other one's phenomenal. So, I'm going to measure from there. I'm going to be looking for is this is my swing target right here right from there from the low of bar Um from the low of bar two but is it goes up it doesn't give me that swing this is this is disaster I can't believe this is happening whatever it happens your job is
to break even so you sell at the top of the upper third of the trade trading range they sold once is now they're selling most likely it's going to go there look bar 24 actually came down or you can say too many bars passed I don't want to measure from here I want to measure from bar 19 two bare bars Consecutive bars both of them are closing on their lows so that is right there right there is a 20 um 20 point 20 point is um you know 20 and a half point that's what you
need and then They close a bear bar. So you should add another 10 points. You're going for a 30 point. Look, they got the 30 point. They start to take profit. But and then it comes down more. So you should be selling more. This is a bare flag. So bare flag. You should be looking for a 41 points. It needs to go 41 points to give you 40 points. Okay. These are all uh covered underneath the um Brooks Encyclopedia here. Let's take a look. If you go to Brooks, if you don't have uh if you
don't have the course, you're not going to be able to you're not going to be able to tag. I'm sorry. Go and look at the Brooks encyclopedia. You have to have the course. So, if you want the course, it's going to be in the video description. Go get it from there. I put The link. But if you have the course and if you have the encyclopedia, you need 60 days in the course. Then you can ask for the encyclopedia access. Okay? Then you go to that if you want to study it. Go to part one.
Always in. Okay. Go to always in. They're organized. Always in. There you go. It always in starts always in long. Always in short. So let's take a look at always in Short. So it L actually is puts everything in perspective here. with all the common always in and explains how to measure all of this, how to find, how to calculate all of that. It's not that difficult. Look, similar fashion. Um, look, we're up and then we sell. So, study these always in short, always in long. Once you study them, you'll never forget it. Once you
once you learn it, you never forget it. But you have to have course access to get there. Anyway, So I got the 40 41 point right there, which is great, but it another is impulsive bare body. So market is probably wanting to get some kind of like a 80 point. So I was going for like a 80 point, but um I said because you have two bars, um it's the second time they're selling, this bar is not all that great. I like to measure from the close of the bar. That's a much better Okay, much
better measurement. And then you can go for a 80 point uh expect 81 To give you 80 points. So you got it. So this was a ultimate bare trend started around uh bar 18 90 minutes after the open going is sideways and um well sideways I would say sideways not sideways and up. We didn't make new highs and at the end of the hour and a half two hours it starts to sell. Now how do I know this is going to sell further down? and I can actually expect my measured move target. Well, you're going
to look for always in always Always in short. Is it a valid always in short or is it just going to sell with couple of legs and then get trapped underneath the moving average and resume the trend back up? How do you know that's an always in short? If you have three bare bars, sometimes two bars if they're really large, but three bare bars, we got four that right there and it's stacking down. Sell the close and there are actually gaps. Where are those gaps? Look, you're going to say, "Oh, No, those are overlapping." No,
not necessarily. The close of that bar with the high of that bar, that's a gap. High of this bar to a open of this bar, that's a gap. If these are all gaps, okay, so now I have four bare bars, tight bare channel. Chances are it this is going to get another leg or two down. So, this is a bare flag. How do I identify bare flags? Well, first I need impulsive selling. It could be a bunch of small bear bars or it could be a one Big impulsive bar, hence bar 24 and then bullbar
that is so strong but suddenly bears bulls are actually getting trapped above bull bars. So it I actually opened up the um book one book number one the bar by bar uh price action for serious trader by El Brooks is I found the page and I posted how to sell how to measure like for example you sell here you put your stop here that's your 2R we get to the 2 R for this okay and then is market actually reverses back up yes it did Come down to 3 R which is great Why? Because this
is an impulsive leg is bar 28. So now I'm looking for uh I'm looking for a really good bull body close because that's the indication of that we can trap those bulls with the is close or selling one tick above this one. Sold above the bull bar which is I always look for that. This is a bare flag too. Anybody sold it with the stop there, right? So this is their 2 R, 3 R, 4R, they even got the five R. So if You're measuring from there, that's great. If you're measuring the leg is and
looking for a measured move, that's your target and that's a profit taken. They try to get, but I wouldn't count that. So if you're measuring this, that's great. Or measure the entire uh include the 22 as well, then you're looking for that as a measured move. Okay? But I'm measuring for um um bare flags. So is I'm going to take the 24 low. That high is I'm going to go for 2 R. Look, I I'm so Yep, that's the 2 R is. And then it goes back up. But I've got an impulsive bar. That's great.
I'm going to sell under 28. My stop is going to be there. That I got a 1 R. I couldn't go any further. Why? Because no bare bar is closing below. So now what? Well, you're going to take your profit because if we start to get above those bars, bulls will try to get their bull flags so on. But anyway, we moved underneath the moving average and we're Closing pretty strong is pretty strong is bare bodies. So is even if we go back up six 60% chance we're going to sell it. Okay, we're going to
come down and test these. Now, we have a tight bare channel. One thing that is tells me we're not all that bullish, that's because we're not closing far from the the tra uh trend line with strong bull bodies. Now, granted, we're still we started to make bare bull flags, flag number one and a flag number two, but That's still a sideways price action, and the bears still want to come down. The first break of the uh trend line, bears will try to sell. Now we're we morph into a trading range and I expect these lows
to be tested once again. So we came down to my measured move. We got that. Thank you very much. I actually uh took that. Then we got a really bad signal. Bar 33 is we'll probably going to come back and test it before we go back above the moving average. So I'm Looking for 10 bars two lengths going up to moving average. But it we can also sell because bears are looking for a wedge or um double double top at the moving average. Second entry short is bare flag instead. We got actually one, two, and
three, right? Is we went up, we came down, we went up, we came down, and we went up. And we have a even double top there with a neckline. Bears are taking that out. We're probably going to get a measured move, but we can't seem To take out this gap bar. Um gap bar close when underneath the moving average. The this is the gap bar. You should be basing um your price action analysis. If you want more low prices, you want to see bears actually close below the 33 close. If they cannot close bear bars,
this is going to be done. They're going to try once, they're going to try twice. If the second time they try and not able to close bare bars, we're never going to take out that low And we're never going to make new lows. And this um is going to grind up. it could still form a bare flag because what seems like this okay on the five minute it's grinding up and up and up which I'm going to talk about why we went up but it could end up at the end of the day a one
big major trend reversal or a bare flag but take a look at I said here's the reason why we're not going down other than the we're not able to take out the gap bar which is a Uh microlevel analysis but the macro level analysis when you squeeze things a little bit and look at things a bird's eye view. You have a bull channel. Okay, same thing right here. You have a bull channel when you have bears actually. Well, that's not the one, but I'll Well, first of all, we're holding, right? That channel lows are holding
for number one. Or you could say, hey, I'm going to measure it from here. We broke this trend line. Okay, we broke this trend Line. So that means yes it's selling but most likely bulls are going to buy again. Okay. So you have another trend line. So you have this trend line holding and when when market is going like this and it breaks it, right? Don't expect to sell, look to buy because we're going to go right back up again. If we take out that high with bull closes, you can buy the pullback and expect
new highs and then look for a reversal down. However, we go up and we Cannot take out that high and we make a lower high. Okay, that means major trend reversal, which I said today, we're going to buy and we're going to target this area because we need bulls to buy good-looking bull bars, which I'm going to talk about, and get their 80% probability. 60% probability bulls are trying to break even where they bought and got stuck there. Okay? So, we need to get back there, but don't be excited Because we may not make a
new high that creates a lower high trend reversal. Okay, so let's talk about that. So, it now we know this bigger pattern trumps the smaller pattern. So, we're not all that bearish. So, where are the bulls stuck? Where are the bulls stuck? Well, this is their second entry, right? First entry, second entry, high one, high two. They bought the high two. They're looking for a swing by. They're looking for a swing That takes out the one high. They never got it. Well, they got something. That's a two-legged move up in ended up becoming a leg
in or legs in a trading range. And then look, they bought here, they bought there. They're totally stuck. This happens is we come down and take these out. They're buying at these lows. But look, you got a very tight bare channel, okay? Is when this happens and you're trying to scale in right here. Oh, they're going to trap you for The second time. So, you better be ready to scale in again. So, that's the second time or third time. El says in his course is if you go to how to scale in 35 A B
C D I believe is there four videos, three or four videos. He explains how to scale in if you're not a course member. Okay, let's go to the course first, right? for the members is have the access. Come on, I can do this. Hold On. For the course members, if you go to how to trade it, if you go to 35 is where's 35? 35 35 35. Yeah, scaling in 35 A B C. Oh, that was only three. Okay, not four. just three uh videos, but they're so good. Learn about it. If you're not, here's
here's a good news. If you're watching this on YouTube and you're not a course member, which I don't don't understand why you wouldn't be. If you really want to learn it, get the course. But if you Don't, then type here London. Okay? And search this right here, London Price Action Symposium. Go there, click on it, and watch this video from start to finish. do not scrub. Um but somewhere towards these um like um maybe like a 60 70% in L will talk about a similar situation is how to actually scale in what to look for
good-looking bull bars. Okay, watch this and you will learn great deal. So let's talk about it right Here. How do I do it? So I said it in the trade room. Look guys, we're we're now closing, you know, warning bars like 34, like 37. These are strong bull bars, okay? And bears are trying to sell with multiple bars and not able to. We also form an inverse uh head and shoulders. But aside from the inverse head and shoulders, forget about it. It's it's a sideways price action. So, it's going to go up, it's going to
come down. It's going to go up. It's going to If we're Not taking out the gap bar 33 body close with bare closes, then we're making bull flags. Okay? Because these guys are stuck here. They need to scale in. They know that when they scaled in with 25, it was a good-looking bar. That was the first one um they scaled in with. Immediately, they're trapped. So, they're not going to buy every bullbar they see. They're going to sit tight and they're going to say, "Nope, we have to conserve, okay, the funds. We cannot Jump in
everywhere BC. So, let's wait for a good-looking bar. Okay. So, there's a bad signal bar 33. Goodlooking bar 34, but it's got an upper wick. I don't like it. I probably wouldn't scale in with 34 because I know bad signal bars will be tested first. So, look, we tested. So, lucky you didn't buy it. Now, we have a much better bar. So, that's a much better bar. So, if you are a bull, you bought a high two and you bought above, okay, the good-looking bar 37, your 80% break even is right here. So, you should
expect bulls at least get there and get an average break even. Others will hold. Okay, they're going to buy better bars. Okay, there's set of them right here. They can measure it from there, too. they're going to go for probably uh the Okay, so that's their 80%. Their um 60% break even. First break even is right there. They'll go there. The other one is the close. Look, they bought the close. They bought one tick above. That was the final trap that actually got them trapped all the way up there with bar 1819. So, we'll probably
going to try to get there. Okay, but we couldn't. Doesn't matter. You already got so close to it. You already made money right here. You're now break even. Plus, you're making money. So, you bought down here. Now, they're squeezing the bears out of the market. Even if you bought Late, okay? Even if you bought, let's see, is maybe you bought there and you put your stop here and you're buying. Look, you got your break even plus. So, you're going to make money. So, eventually we went there. Maybe you bought above 12. We actually got it.
Maybe the close or 12. Maybe that was the one because two bull bars. Nobody wanted to buy the inside. I would buy the inside bar if I were looking for um a leg up. I would have probably Bought this bar. It's because it it's an inside bar, but this bar is the problem. I would still buy it and I would look for this high to be tested. But if you're conservative and you want a better bar and confirmation is then this is the bar you're buying. Forget about this. This is the bar you're buying. You're
making money and then final entry probably above 16 when everybody else is taking profit is that would trap you. So if you actually market goes to 12 close At 12 high which it did you got your 60% probabil probability of making money right there. Okay. So um others is let's see there is a bull bare body bull the first time we close so I've got a measured move and I've got a two R which we got very very close I like to take the body so this would be my target two R target which we
got it and then some so everybody's exiting there um but um anyway so is more bulls are entering here is we now are getting bull Bars are closing above the moving average. It's a great sign. So we have bar 46 is decent is we have is bar 47 is nice and then we come down with 48. That's an unfinished business. I mark the top and I expect price to get back above it is this is something that I learned from these is institutional traders and um is keep that in mind. I look for a twolegate
move and then trap. Everybody else looks to sell. I look to trap. I look to trap because I know Their stops are here. Their stops are here. I am buying is into those stops. Okay. So, what does that mean is I told everybody in the trade room is don't sell. I'm I'm actually long. I'm looking to buy. I'm swinging this up all the way somewhere up here. and then is I'm going to look to see if um the bulls gonna get exhausted in this trading range and the bears will start some kind of a major
trend reversal. So major trend reversal actually started here. Okay, so we broke This bare channel and then we came back and test it and we made a double bottom. So this was the midday reversal MTR going up major trend reversal. But for bulls want to resume the trend they not only want to get up here they also want to break out and make new highs. They can still do that tomorrow if they wanted to but for today by the time it's bar 70 it's a small pullback bull trend. It needs to now pull back with
couple of legs to the moving average and it Started with bar 70. So I started to take profits. did. I was scalping, but I said I'm going to still hold because their bulls are stuck above 68. They're probably going to buy the 70 close underneath 70 and they're going to try to bring market up to the 68. We could come down with two legs, but they will try. So, we came down with two legs and they tried and they got their break even with bar 75 is and then is once the bar body does not
close at the close of 68 Or one tick above, right, is that's it. I'm done. and it's got an upper wick like that, you got to exit and then you sell. So now is this was the first entry with two legs down. We pull back. Now this is your second entry short at the end of the day. Bar 76 is an institutional uh bar. Institutions are entering with the close of that bar. And then is I showed you guys how to trade with that um indicator that I showed you. Uh you can just measure that's
your One R. That's your two R. Hey, we got the almost got the three R if you measure from the low of 70. But I said because bar 70 did not have a continuation consecutive bare bar after that, I would measure from the close of the bar, not the low of the bar, just to stay conservative with my 1 hour and 2 hour target. So that was your 1 hour, that was your 2R, that's your 3R. We got the three and a half. Nothing's closing below the 3 R. That means end of day Profit taken
exit out you're done. Market was extremely is generous gave you a three R but plus is you're buying I'm sorry you're selling into is support there from the high of that last bear bar before the impulsive bullish move. That is your demand zone right first touch buyers will show up. it probably is going to come back down and then give you a strong buy signal that could be after hours. But anyway, so is we ended up forming a trading range day. It was very interesting is we had a really nice trade here. We have a
really nice trade and the at the end of the day we also had another swing. So all in all it was a very good day for me and hopefully I help you guys um stay in your trades. So you had a stop order market right here, but then it reversed back up, turned it into a limit order market right there. Trading range trading for about 18 bars, 90 minutes. So I'm looking for failure over failure Is swing setup is what the heck does that mean? Well, it's in the course. It's also in the books. Okay,
you look for double tops and double bottoms. Double tops and is double Well, that's a double bottom. So two sets of double tops. You can also have uh two double tops and one double bottom or two double bottoms on one double top. Okay, that's fine too. So is we get that that means bears are failing to continue. Bulls are failing once, bears failed again and the Bulls failed again. So twice both sides fail that starts a trade uh swing trade that starts the stop order market. is if you watch L's how to trade the opening
okay uh opening session or the first session is is L actually talks about five or more reversals you have to wait okay to plot before you see a swing trade five or more reversals we're up first reversal second reversal third reversal fourth reversal Fifth reversal Right. And the fifth reversal turns actually actually I'm counting that wrong. Let me do that again. This is up and down. One goes up comes down. That's one 2 3 4 5 6 that's the swing. And right around 90 minute passes or you get a double top or triple top. Okay.
Then you have a really good swing is sets up right there. So now you can take this entire training range is and plot it down. That's your measured mood. Once you get the measured mood, Now you can count legs. You can count for a wedge, right? Leg one, leg two, leg three. Now is look for okay, come back and retest. And if we cannot take out those gap bars underneath the moving average, we're going to go back up. But because we have gap bars, 60% of chance we're going to come back and retest. Okay, so
that's why we ended up getting this pullback is we had gap bars here. So the 60% of chance we're going to go up and test these gap bars. Now if we Actually close above these gap bars, what which gap bar that I'm interested? I'm interested in bar 17. That's the highest bull close from the moving average. Right? So from the open to the close, right? It I want to see market going up. Then I want to see bull bars closing then I can buy and go and go. Okay, but that never happened. We ended up
keeping this gap there open. So this has failed. But still 60% of chance we should have gone up there and we did. But so now bears have it. Okay. So that means we have to come down and try to Which bar would would we test? Do we test 28, 26? Nope. Do we test 32? Nope. 33. 33 high. 33 open 33 close. This is where we need to test. Okay. And then if we do break below, then you can sell the pullback and that's how we become bearish. But nope, we we failed for the bulls.
Now we're failing for the bears. But doesn't matter. You have a trade here. And that trade is is reversing Back up. Bull flag number one, bull flag number two, bull flag number three again, right? several reversals failing and the bulls showing up. So, this is great. So, I'm looking for two or more uh bull bars closing above the moving average is my signal. Bar 46 is bar 47. I like it. I want to buy. But the problem here is that these are the very first bars and I'm still in a trading range. And most likely
bears will sell any good-looking bar from above the Moving average um hoping to come back down here because that's what they were doing. As the price goes up is they're selling strong bull closes. As the price comes down, they're buying strong bare close like 42. So they're going to try again. They did comes down two legs, but that's it. So now bears are now trapped below 51. That's 1:30 p.m. about like 48 49 50 51. I'm looking for a swing trade whether it's going to come down or it's going to go up. I was bullish
already. So it I said expect this is a pullback. I expect bulls to actually get above it. So now we go above it. Good looking bar. Uh you can even buy from there, right? So that's a breakout. You could just put your stop there. You don't need to put your stop here. That's the measured move you're going to go for. Now, if you do utilize this stop that's just too far away, we may not get there. Okay, this is perfectly fine to put your stop. Chances are we're not going to come down And uh test
there any any anymore. Why? Because we're closing bull bars now. Two uh another set of bull bars. 52 53 54 is Oh, yeah. I'm buying. I'm not even looking back. I've got a tight bull channel. Probably another uh flag. We're breaking out. So, I'm counting legs. So, I've got leg one, pull back, leg two, pull back, leg three. Then, we reach the bar um 12 close, 12 high. That's where everybody got stuck. That was the 60% chance full break even. That's where you Take your profit and expect couple of legs down to the moving average.
If the bars start to close below moving average, then swing it back down because market wants to come back down to um that gap bar. Maybe that one. I don't know. But uh we ran out of time. Maybe after hours we can come down more. But who's going to trade that? Me? No. All right, I'll take some questions here. Is first question there are too many. Okay. Is my entries and scale Entries are working well. Good job. My question is, how do you take profit when targets are not hit? What type of price action negates
your trade and what defend um defensive actions is do you take and how? Well, I think I talked about it right is so here I got bears. Um this is a really good bar. I'm going for this. This is my one R. So I already got it. But if you actually measured from here, three bar gapping, your stop goes above the first bar, you got a gap Here. This is your target. I always utilize the half hour. I'm always taking profit there and leaving a runner. If I don't see two bars, not one of them
closing below the half hour, that would make me upset. Now, what would what would I do? Well, uh, if I already sold it, right, I would look for a pullback into some gap area or 50% of a gap bar. I would sell and I would break even before this goes back up again. So, I would go into a fix it mode. Okay. So, Yeah, you can hold it, but it you have to have a white stop somewhere here. Your white stop is right there. That line, right? It's um whatever you measure to get this target,
you're projecting up. So that's your white stop. You can what you can do is is you can just extend it. And when price gets up here, right somewhere here, that's the upper third or maybe here. Put sell orders. The first sell orders are activated here. It comes back down. Maybe you sold underneath one. Maybe you sold two. Did they give you a break even? Yes. Maybe you break even. Maybe you're still holding another contract hoping that we're gonna break that again. We didn't. So, this is where you decide, okay, you know what? I think I'm
done. I already sold it and took a break even and I'm not getting any bear bar close below that halfart. I think I'm never going to go there. So, the bulls can actually go to bar one and get a Breakout. This is where you decide, okay, discretionary, you could just exit out of your trade. Now, market is giving you a bullish move up. Maybe you can buy that from the low of the trading range and scalp at the top of the trading range and make that compensate whatever you lost with that runner right there. So
is you're going to have to decide all that or if you have a white stop is and you have a large account. You don't need to do any of that. You could just simply See a failure for bulls taken out that high. You see bar 18, sell it and expect one R and two R. Just let it come down. All right, your stop is up here. You're not, but maybe your stop is here is either or you got a white stop and you see that nothing's closing above bar one. That's it. This is still a
fair game for bears. It's just a limit order bears are entering. So now you have two consecutive bear bars sell. Now you expect that to be tested that to be Tested and then probably you're going to get the two R. So that's the beauty of having white stops that you're swinging. Okay. So you happen to s um sell too early. Okay, it that's why you're being punished selling too early. It happens. And then is but you wait about 30 minutes, you wait about 90 minutes, you get your swing set up, then you're no longer punished,
right? Is and you have a white stop, you're going to fix it. So you're going to have to um study the Charts and decide how to trade. Um could you share the trading view is indicator? Yes, I have it on my discord. You can um we could talk about that in there. Is when did you change your mind that it's it's no longer bare flag at these bottom? Uh when did you enter long? I think I talked about that already. So is bears try to sell is remember I said we need a double top or
wedge top. Bears trying to see bears see this as a bare flag and this is maybe They first time they sold maybe first time they sold and second time they're going to always try to sell there's nothing closing above the moving average that was still bearish I still expected is price to come down I ended up buying around here so I'm buying and buying I said this is a flag this is a flag but we needed to come down and test this channel lows now I see no one is taking out the gap bar 33
three body. So that's it. Anytime I see bull bars and I even Had a target there. Remember as soon as I went for lunch, this went up and tested it. So it was actually a catalyst. Some kind of a announcement came out from Trump is or was it Trump or a Fed member? So made it happen. So we went up and tested that. But is then came back down. Still nothing closing. But once I see bars are start to sk uh stack three bull bars by close. The fourth one even trap more bears underneath 45
is you got to go long. We're going to get another bare bull flag. Double bottom bull flag 4952. Game on. Buy above the second entry long 52. And from there on you are you have a swing trade. is when does price action force you to exit a trades without your price uh target hit? This is the same person asked the question earlier which is good followup but I thought I answered it but let me uh so price target how do I exit is well I try To fix it all the time most of the time
I get my targets I'm never going to fail them but sometimes when there's high volatility is it does funny things like goes up it comes down it goes up it comes down it's a nightmare when I see twice it's missing my target I get the heeie-jeebies. Okay, it's an American saying, meaning you start to feel crawling like ants crawling all over you. It's like you feel that icky feeling. It's like I don't want to be in This trade anymore. So that's what you do. That's when you exit. Like for example, say you're sold. Okay, price
went up, two legs down, goes up. Okay, great. I'm going to sell at the moving average and I'm targeting is maybe the low of bar 33. Okay, good for you. That's great. It came down once. H Okay, it came down just about a 50% but not coming down. Okay, it missed it missed the mark there. Then it goes up with another leg up. First leg for bulls and Second leg for bulls. Okay, there's a double top neckline 39. Good looking bear bar 40. Okay, I'm selling underneath. So, I'm scaling it again. I'm selling right. You
sold once, you're selling again. It comes down to exact same place and still cannot come down. This is where you need to You see a bullbar right there. Everybody's trapped because they sold here. What they're going to do is they're going to sell at the highs. When it gets there, they're Going to sell. Maybe they're going to sell at these breakout points. Breakout point. They sold, sold, sold a new breakout point. They're going to sell once. They're going to sell twice to exit out. If they see that price is no longer coming down, only giving
them a break even, they will exit out. Okay, it's the second time I sell and my low two short is not advancing. I'm pretty much done with that trade. It's like a bar like 43 42 Should be selling more. And if it's not going to do that, then I'm done. Is I will exit. I start to see bull bars. And if I'm still not exiting, I see these bull bars stacking up. I will take that small loss. I will buy it. And as it goes up, I'm going to keep adding with the strong bull bodies.
I'll make tenfold what I've lost here with that runner. So second time you have to give bulls and bears twice to do something. Remember what L says, market needs to do Something twice to either fail or prevail. Okay? So in order to prevail is it needs to keep extending the second leg, second cell. Second cell did not extend. So bears trying twice, once, twice, failing. It's done. Bulls are coming in and stacking up one bar after another. That's buy to close. Buy to close is at one o'clock into 130. That's done. You need to exit
out. Okay? And that's the second time they tried failed. You have to take that as a hint And say, "Nope, bears are failing here because this is turning into a major trend reversal." You want to learn about the major trend reversals? I'm going to show you guys a great hold on. It's called um It's called Brooks. It's called best trades Brooks price action best trade day trading inside. This is a this is a Richard and El Brooks collaborated and did this amazing miniourse. If you don't have it, just Get it just over the weekend. And
I'm telling you, I did this just over the weekend. Just over the weekend. Uh let me see if I can actually log Let me log in. Uh, I think it's this one. Well, I don't have it. Never mind. Um, because I use a different computer to log in. All right. About the about the course. So, go to course content. This is like a $69 or something like this. Funny. I don't know why they do It, but if this was my course, I would have been charging $269 first of all, but whatever. So I've actually um
went through the uh major trend reversals one two three four five modules one two three four five modules is just study this if you don't have the course get this does not replace the main course but it is fantastic l explains exactly and literally he was explaining this this is a major trend reversal okay we have gap bars above the Moving average it gives you 60% % chance of going back and retesting them even if we cannot make a new high. Then we have gap bars here. So that means we're going to come back down.
That puts us into a trading range. All that is explained. So it go to here and uh go to is scroll down is join and get started. the course then go to the main course major trend reversals and study. We have much more Comprehensive examples and videos there. Or if you have the books, go study it. This was perfect. Um it really is a market cycle, right? We're bullish sideways down. We're bearish tight bear channel. Don't buy right away. Look for a tra uh trading range. If the second leg fails, that means we're going to
reverse back up. That's great. So, it's sideways and up. We're making higher lows. We're squeezing the bears out. So, if you weren't bullish around here, go Bullish around here. There's a gap there. So, I actually measured that gap from somewhere here. I put my stop if that was my measured move. So I took that and I said that's just around the bar 12 high. So that's got to be the 60% ch um probability of break even full break even for anyone stuck up at the upper third of this trading range and we got that and
the market came down. So even in the course that miniourse best trades is actually shows you how to spot Those gap bars right and then um grab those. So, for example, here's a gap bar. You don't have to measure this. You can actually measure from the close of that bar. Put your stop underneath 52. Go for that one. That's your target. Now, it's granted it's very small. Or you can say, "Hey, I want to take this one." Then that's your target. If that's where you want to put your stop, that's fine. Then that's your target.
So, it it's all in the course. It's very Simple. Once you learn it, you never forget it. All right. Next question. And then this is the final one. Oh, wait. There too is 76. Then second entry. Did you add to your short when the bar was still forming or when it closed? Um uh I did sell the is I exited and I said I'm looking I exited with 75 and I said I'm looking for a second entry short. So a strong bar like 75 being violated by 76. You can uh if the Second entry short
although even though it closed right at the moving average is you don't have to sell the close you can just is simply put the sell order one tick under but when I see a bar strong and I know this is a double top bare flag okay double top bare flag it's actually one up down up down down up it's like there's a mini three push there is if you don't believe me Go some um here go to a smaller Uh time frame like 3 minutes right so we come down with three pushes and then we
go up up on this down on this up on this down on this up on this still difficult to read go down to two minutes up on this down on this up on this is down inside bar up on this see is market is making one two three push and then you have two bars. One of them closed at the moving average. The other one is underneath. So you sell this Bar 189. You sell the close. You sell one tick under and you're selling. Now you can that's a double top neckline. We're breaking the neckline
with bodies is go for a measured move right there. So is but as you look at it enough um to train your eye. This is a double top right there. and we close a bear bar. If you're not keen on selling right at the moving average, then put a sell order right underneath is bar 76. That should give you Plenty of points to get to your measured new. There you go. Is okay. Final question. Could you talk could you walk us through on the trade management specifically on how to build a position is well I
think I did that already. Is where to add to a position? Should I trail? I've This is a big subject, David. I want to um go through it, but it is already six minutes after 5:00 pm and I am dead tired. Is I actually went through this and it's recorded session In March. I want to do this for you. Could you do me a favor? Like for example, okay, let me do it. Is I don't want to like leave you hanging like that. So, okay. So the idea to manage a trade first of all it
has to go to your way. It means it has a good trade that actually extends and you know maybe say we're selling right a good swing short is a good swing short when it is a stop order market. So that means is price Needs to be getting out of a trading range limit order market environment. You're not going to get those, okay? Is setups is early on. You're not going to see them unless you have a trained eye. That's what what I'm saying. Just go and watch the major trend reversal, okay, videos. This is where
L explains to you how to enter with a 40% probability, which is a small probability, but with a small risk. Okay, that's the one you want because That's where you start to enter um is swing trade early and that's where you end up adding more to your winning trade. Okay, so now by the time you recognize that there is a stop order market, when did the stop order market started? Well, it it kind of started with bar 19, maybe 20, but then we reached the moving average. Some will say, "Oh, well, we're still in the
trading range." Oh, okay. We're now moving underneath the trading. Oh, I can Sell this. Yes, you do. But the problem here is look at your risk. This is a 60% probability of making money. Some kind of a measured move, but your stop is so high. So, as you add to your maybe short trade, it's kind of nerve-wracking. Why? because you're selling late and every time you get a really decent strong bare close, next bar is actually a bull bar because machines know that you entered late. Machines enter up here. They can sell and buy any
given time, any um um Any place on the chart is any is you know setup whatever but is you are a confirmation person right? You're a retail trader you need to see the trade. So, by the time we see the trade, it's too late. That's the 60% probability of making money with a big risk. Okay, that's fine. Look, maybe you entered right here underneath bar 23, right? Or the close and you put your stop there. Maybe you put your stop here. So, you're going for this. you should be able to Make money either from here,
maybe you're going for a two R, but every time you sell and you add with a strong bare body, it's reversing back up and you're getting the heebie-jebies, right? Again, 26 27. This would upset you, but that's the name of the game. But when you enter early, that's when you need to know, okay, is when do you enter? Look, when market coming down goes up, count legs. If it makes two legs up and reaches some kind of high, chances are it could be Forming a double top. Okay, is we have a double top. But how
do you know? By the time price gets here, you're here with bar 17. You don't know bar 18. So all you know that this could still go up. This could test the bar one high. It continue to go up. But you want to sell this. Then you get bar 18. Okay. is now you're saying I'm entering I'm entering with the close or one tick below bar 18 I'm going to put my stop here is and this is my 40% okay probability while It's still probability is low probability trade my risk is small I'm entering so
I'm going to sell and here is my one R and here's my two R you're going for the two R target is you got a second bear bar add another contract contract. Great. You added another contract as it comes down the moving average. Maybe take one off. It comes down the moving average but closes bare bar. You still haven't gotten your one hour. Maybe you're still Holding your two contracts. Now you're getting your one hour. That's great. Take off. Get that. Okay. Is some people are all in all out. All they want is a a
two R but their stop is here. I'm not one of those traders. When market is giving me a good trade, I work this one hour. I'm taking profit there. But the problem here when you take one off here is right. Maybe you entered one there. You entered another one. You have two Contracts. Maybe you entered another one. Maybe you have three contracts. So you have three contracts. Take two out. Okay, great. You take two out. So now one left is this is your target, right? Your stop is here. As soon as bears close below one
hour target a bare body, then take that stop, put it like um maybe like a point above. I got nothing until bar what? Huh? Okay. Um sorry about that. Is so until bar 23 is you did not get the Close. Okay. You your stop is still up here. Now you get it. That's great. So now you move your stop maybe a one point above this one R and now you going for this. Maybe you can even sell one more contract. Add back one more contract because bar 23 closed below the one R. Add another. So
instead of one contract going down, you now have two contract. Maybe somewhere in the middle. Take one off and let the rest come down. Oh, look. This one actually look we closed One. Uh 24 closed below two R. Oh my gosh. This is fantastic. Oh, no. Actually, it didn't. Sorry, I was wrong. So, 24 didn't really close below it. Okay. Now, don't move your stop. Your stop stays one point above this or couple of ticks above. I don't care where you put it. Just I generally put one point. Uh or I I'll put it above
the bullbar is or that lower high. But I'll just keep it a safe distance. But now I don't have that bare bar. Well, I'm kind Of irritated. What's going on here? Well, it's I either sculpt out everything and I'm done or I have still a runner this time for uh you know 1 hour, 2 hour, 3 hour. I need a bare clone 26. I'm going to put a one one sell order right there. I'm also going to put a sell order here. It could go up and get my limit order or my stop order underneath
26. So now I'm selling, right? And my stop is now either one point above the 2 R or above The bull bar or one of these lower high new lower highs. And as it comes down, this goes to the 4R. Again, same thing. We close below the three R. I can sell the pullback at the 3 R or I can sell one tick underneath bar 28. Once it starts to come down, I take that stop from 2 R or from above this bar and put it one point above or somewhere up here. I don't put
it there. If if it's a big bare gap bar, I generally use the upper third. Like at this point, I want to get Closer to the price because it can reverse back up. But obviously, I want to keep it at a distance where it's safe. I don't get run over. and I get my 4R and the bars are started to become very small. I see bull pressure. Now is the time to exit out before they kick me out. Look, if your stop is here, they haven't kicked you out. They're still selling. Still trying to come
back the 4our. No one's come in the 4our. It came very close, but then it's reversing. Time to exit. Exit above strong bull bars or exit with the second or third try and not and failing. Just exit. Don't let them hit your stop. Okay. Well, at this point, they do hit your stop right here because it this moved down. It came down. Your stop was probably above 30. They would have taken you out. You don't you won't do anything. You can't even find time to do anything. They would have kicked you out. Strong bullbar, you
would exit Either with 34 or they would kick you out. So, hopefully that's helpful. Okay, I am done with my session everyone. You all have a great time. I will see you guys is tomorrow I believe is who is tomorrow? Uh I'm not scheduled. I know I'm not. Uh tomorrow I get to sleep. Tomorrow is Tim Fairweather. Oh great. And Brad Wolf. So it's a full day event. So you guys very show up. I'll be on Discords. So, if you have any questions, I'll be happy to help out on Discords. But, uh, I'll probably be
up and about at my desk around 9:30. I'll try to sleep in tomorrow. Um, but yeah, I'll see you guys on Discord. Are you all have a great evening and I'll see you guys tomorrow. Bye, everyone.
