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Al Brooks - How to Trade Price Action > Trading Climactic Reversals (Failed Breakouts) > Flashcards

Trading Climactic Reversals (Failed Breakouts) Flashcards

1
Q

If the Bulls can make money in a Bear Trend what is that telling me?

A

That Channel/Trend is not all that strong and it will soon probably transition into a TR or a Trend Reversal

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2
Q

Where do Bulls enter the market?

A

Bulls enter where Bears take Profits and Vice Versa for the Bears

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3
Q

Weak Bear BO - Deep PB

A

Weak Bear BO - Deep PB

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4
Q

Bulls and Bears Buy Low and Sell High (BLSHS)

A

Bulls and Bears Buy Low and Sell High (BLSHS)

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5
Q

Most Traders should NOT Reverse

A

Most Traders should NOT Reverse

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6
Q

Every BO Trend Bar is at least what?

A

Every BO Trend Bar is at least a Minor Climax

Climax is an acceleration of a move up or down

Most BOs(climaxes) are minor and are part of TRs or Channels

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7
Q

Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …

A

Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …

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8
Q

Exhaustive Buy Climax - Beginners should exit their Longs

When you get a Buy Climax I should not bet thinking a Reversal into a new Trend rather I should be thinking about this is an exhaustive end to the current trend (a Pause) and see what the Bears can do from this point; rather that is a TR or a Reversal

A

Exhaustive Buy Climax - Beginners should exit their Longs

When you get a Buy Climax I should not bet thinking a Reversal into a new Trend rather I should be thinking about this is an exhaustive end to the current trend (a Pause) and see what the Bears can do from this point; rather that is a TR or a Reversal

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9
Q

When you see a Big Climatic move near a possible end of a Trend, I should see this as a GIFT and take profits.

Strong Bulls will take profits, do NOT look to Buy

A

When you see a Big Climatic move near a possible end of a Trend, I should see this as a GIFT and take profits.

Strong Bulls will take profits, do NOT look to Buy

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10
Q

Exhaustive Sell Climax - Beginners Should EXIT SHORTS

A

Exhaustive Sell Climax - Beginners Should EXIT SHORTS

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11
Q

What do the Weak Bears do at Highs?

A

Weak Bears Buy at Highs

Weak Bears who have been selling and possibly scaling in can no longer take the pain and buy back their shorts

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12
Q

Strong Bulls bought lower when RISK was Big

A

Strong Bulls bought lower when RISK was Big

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13
Q

What do Strong Bulls see a BIG BO as near a probable end of a Trend?

A

Strong Bull see a BIG BO as a Gift and they take PROFITS

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14
Q

Do Strong bulls wait to Buy after a Buy Climax or do they Buy during?

A

Strong Bulls wait to Buy after a Buy Climax

The strong Bulls want to see if the Bears will be able to create a Reversal down and after 10 Bars down if the Bears fail to do that the Bulls than assume the rest of the day will be in a TR

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15
Q

When Strong Bears see this BIG Buy Climax they know the Bulls are taking Profits and will wait to buy for 5-10 bars

Strong Bears Sell Strong Bull closes at the same time Strong Bulls are Selling to take Profits

A

When Strong Bears see this BIG Buy Climax they know the Bulls are taking Profits and will wait to buy for 5-10 bars

Strong Bears Sell Strong Bull closes at the same time Strong Bulls are Selling to take Profits

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16
Q

Strong Bears sometimes sell the close of a Climatic Bull Bar

A

Strong Bears sometimes sell the close of a Climatic Bull Bar

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17
Q

Major Climax is Big BO Late in Trend

It is important to be aware of Big Climatic moves near the end of a Trend, be aware it could be a reversal (MTR) into an opposite Trend or simply a pause in the Trend

A

Major Climax is Big BO Late in Trend

It is important to be aware of Big Climatic moves near the end of a Trend, be aware it could be a reversal (MTR) into an opposite Trend or simply a pause in the Trend

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18
Q

What are some ways to Enter for a Reversal at this Bull Climax at the top of the TR for a Short?

A

Sell the close of the huge bull bar,

especially since it has a tail and is in a TR

(possible 2nd Leg Trap)

Sell the Close of the small follow-through bar buy signal bar

Sell reversal below bear bar

Sell above High 1 after 3 bear bars

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19
Q

As Trends progress they weaken

A

As Trends progress they weaken

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20
Q

Where is the Profit Target?

A

Bears are looking for a MM Profit taking area at the bottom third of the TR

Profit Target is at or below bottom of Bull BO

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21
Q

Where is the Stop?

A

The Stop is just above a Measured Move up

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22
Q

When should I use a Tight Stop in a TR?

A

Use a Tight stop when there is a Strong Signal

23
Q

Failed BO - Scalp Part or All of Position

A

Failed BO - Scalp Part or All of Position

24
Q

V Tops and bottoms are almost ALWAYS are Something Else

A

V Tops and bottoms are almost ALWAYS are Something Else

25
Exhaustive Sell Climax - Big Bear Bar Late in Bear Trend
Exhaustive Sell Climax - Big Bear Bar Late in Bear Trend
26
Wedges do not always have to have perfect wedge shapes, as long as there is 3 pushes up or down it can me classified as a wedge with great context. However the better looking the wedge the higher probability exists in that wedge
Wedges do not always have to have perfect wedge shapes, as long as there is 3 pushes up or down it can me classified as a wedge with great context. However the better looking the wedge the higher probability exists in that wedge
27
After EXTREME Selling who does the probability favor?
After extreme selling the probability favors the BULLS Do not expect an instant Major Reversal but if we get a TR & the probability is even more in the Bulls Favor they will start to look to BUY
28
Anything that is unsustainable in the markets is Climatic Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down
Anything that is unsustainable in the markets is Climatic Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down
29
Is a Micro Channel Late in a Trend a Climax or is it just a a Micro Channel?
a Micro Channel Late in a Trend is a Climax 18 bar bear Micro channel will soon have no one left to sell making it a climatic move Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down
30
Does the 1st BO above a Micro Channel usually succeed or fail?
The 1st BO above a Micro Channel usually FAILS but a Trader can scalp since a reversal is likely soon after an extreme climax
31
Anytime I see a Sell Climax what should I be doing and preparing for?
Look to or Prepare to Buy
32
If Climax is NOT EXTREME is the Reversal usually Big or Small?
If the climax is not extreme the reversal is usually small
33
Unusual Behavior = Is Unsustainable and Climatic
Unusual Behavior = Is Unsustainable and Climatic
34
Buy Climax = SO DO NOT BUY
Buy Climax = SO DO NOT BUY
35
How often does a strong trend transition to a reversal strong trend?
This very rarely occurs in the market When a strong bull reverses, usually it is a minor reversal into a TR or Bull Flag Once in TR, then it can form a MTR and an opposite trend
36
When I sell a Buy Climax WHAT IS MY GOAL?
When Selling a Buy Climax, the GOAL is a Scalp If then forms a MTR, goal can then be a Swing Trade
37
Is the first reversal up after a climatic move usually major or minor?
The first reversal up is usually a minor reversal into a TR or bear flag Once in TR, can then form a MTR and an opposite trend
38
After a minor reversal up from a strong bear climatic move the Bulls wills look for a DB in a TR for a MTR swing trade
After a minor reversal up from a strong bear climatic move the Bulls wills look for a DB in a TR for a MTR swing trade
39
After a Climax what is likely to occur in the markets? And what can it form?
After a Climatic end to a Trend the odds are high there will be sideways movement and a TR will emerge In this TR it can form a possible MTR
40
Whenever the market makes a strong move on the open there is a 50% chance the move is in the wrong direction
Whenever the market makes a strong move on the open there is a 50% chance the move is in the wrong direction
41
a Climax is common on the open
a Climax is common on the open
42
Final Bear Flag lead to a Climatic BEAR BO to Reversal up
Final Bear Flag lead to a Climatic BEAR BO to Reversal up
43
When buying in a Tight Channel you are buying for a scale as reversals will be minor
When buying in a Tight Channel you are buying for a scale as reversals will be minor
44
Bears Sell DT Bear Flag for a Swing Down
Bears Sell DT Bear Flag for a Swing Down
45
Exhaustion Gap can become a Measuring Gap
Exhaustion Gap can become a Measuring Gap
46
a Failed Reversal attempt often leads to a Measured Move (MM)
a Failed Reversal attempt often leads to a Measured Move (MM)
47
What is one way to reduce risk?
One way to reduce risk is to reduce your position size
48
What kind of Traps are common in TRs?
2nd Leg Traps are very common in TRs 80% of BO attempts Fail Reasonable to take Partial Profits at the bottom of the Buy Climax
49
Whenever I have a weak Bull rally what is it most likely to be?
It is probably the start of a bull leg in a TR 10 Bar Bull Micro Channel so relatively strong bulls but this rally is weak since small bars, overlap, and tails
50
When Trend is Weal the Climax is usually small
When Trend is Weal the Climax is usually small
51
STRONG Reversal from Sell Climax and GOOD CONTEXT = Likely not to go much further down and will start to evolve into a TR and possible Reversal
STRONG Reversal from Sell Climax and GOOD CONTEXT = Likely not to go much further down and will start to evolve into a TR and possible Reversal
52
What does a Small Climax usually lead to?
a Small Climax usually leads to a Minor Reversal and than evolves into a TR
53

Al Brooks - How to Trade Price Action (18 decks)

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