Brooks Trading Course

Interesting but not sure if this would work in today's market
This was done 4 years ago before the 2020 crash when price movement was somewhat reasonable

Today with every fed announcement or cpi report the market can go crazy and make irrational moves
 
I found this one that is part of the same series that is more interesting


It goes more in depth on each bar and kind of analyzes the trader psychology and where a possible entry and exit may be
It's more about scalping than relying on the high or low of the day which may change in the middle of the day
 
The best advice for day trading with "known unknown events" (as Scot Ruble calls them) is to be flat and not trading. That's also what George Dean does. He goes fishing :)
 
status1 said:
Interesting but not sure if this would work in today's market
This was done 4 years ago before the 2020 crash when price movement was somewhat reasonable

Today with every fed announcement or cpi report the market can go crazy and make irrational moves
Click to expand...
Opening 18 bars is still true. (y)
 
PhilipC said:
Opening 18 bars is still true.
Click to expand...
Is that just for SPX or any other index ,stock or futures ?
I just looked at SPX and RUT yesterday and while bar 18 was a high it was not the high of the day so I am not sure how that follows the prediction
It seems to me that the 18th bar is just another high or low and the market can continue to go higher or lower from that point
 
Today was another example where it did not follow the rule and got that chance in 1000 where SPX made an early high but it was not the high of the day and made a new high on the last bar before the close
Perhaps this worked better when SPX was around 2300 when the video was made but it doesn't seem to follow those rules anymore so I am not trusting those rules
 
status1 said:
Today was another example where it did not follow the rule and got that chance in 1000 where SPX made an early high but it was not the high of the day and made a new high on the last bar before the close
Perhaps this worked better when SPX was around 2300 when the video was made but it doesn't seem to follow those rules anymore so I am not trusting those rules
Click to expand...
Actually I think the rule was followed today.
The way I read the rule is that by 11:00am (18 of 5min bar) the market defined either low or high of the day. I see on the chart that the low of the day was exactly at 10:55am and market never went lower during the day.
 
Yes...BY 11am, not ON 11am, 90% chance the H or L has been established for the day. So far, my data for 2023 shows this is still the case.
 
I am not so sure It seems to be subject to interpretation I mean how do you know that by bar 18 it is the high or the low
It seems to me that by bar 18 there is a range of high and low but how do you know which is the high and which is the low of the day

Let's say that you think by bar 18 you have the low of the day Without knowing how the rest of the day is going to be how do you know it's not going to continue going lower like on 1/18/2023 when you had a low by bar 18 but than it kept going lower

Comparing that to yesterday when you also had a low by bar 18 but than it reversed and went higher
 
How would you call today's price action ?
It's a little before the 18th bar around 10:39 at the moment and it seems to be in a 20 point trading range and just a few minutes ago the opening low was taken out and seems to be going lower
What are the chances of keep going lower making the 4063.85 the high of the day or turning around and fill the opening gap and making the low of the day around the 18th bar ?
 
Based on back data, for today, there is a 90% chance that the morning HIGH of 4063.85 will not be breached. The low is undetermined...
 
The low after 18 bars was on bar 16 at 4031.48

How do you determine which is the high and which is the low of the day ?
 
status1 said:
The low after 18 bars was on bar 16 at 4031.48

How do you determine which is the high and which is the low of the day ?
Click to expand...
Low during the first 18 bars 4031.48 and high was 4063.85.
When one of these level breaks - the other will be considered low (or high) of the day.
 
Thanks for the tip
So if none of the levels are broken and just stays within the 2 extremes than the high or low of the day cannot be determined ?
 
I'm going to do some research this week because I'm very interested in knowing market personality during range bound days versus trending days and I think the SPX historical data will reveal a lot of information. I'm looking for high probability trades for each type of market. It does seem that 11:00 a.m. is a good point to determine what the rest of the day will look like and then can act from there accordingly.
 
Well that worked for SPX and RUT but you had to wait until 1PM and 2:30 PM to find out what was the high or low of the day which does not leave much time to do any day trading

For /CL it did not work out as expected
It opened with a low of 77.85 and it made a high on bar 14 at 79.16 and a little later broke the high level and went up to 79.93
So that would make the low of the day at 77.85 however after it made the high it went lower the rest of the day breaking the low at the close with a low of 77.74

So I am not sure if this technique supposed to work on any chart or just the indexes or something that moves more than just a couple of points during the day
 
Let's see how today's price action works out
The SPX low was at 4020.44 and the high of 4045.14 was broken so that makes the 4020.44 the low of the day
I will do a paper trade and sell the 4020/4015 put spread for 0.60 Let's see what happens
 
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