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I haven't read Brooks in years, and I moved in other directions anyway, so I'm definitely not the guy you are talking about here (although, with some attention coming into the thread, someone who is may notice and decide to chime in.)
However, one thing I recall is that Brooks often described things in terms of the "signal bar" and then the "entry bar." The signal bar in an H1 or 2 would be the bar whose high is exceeded by the next bar (not the bar that exceeds it). The bar that does the exceeding is the entry bar. I think this is somewhat like what you are referring to when you talk about the setup. You trade the H1/2 or whatever by putting your entry buy stop just above the high of the first bar (the signal bar). If the next bar exceeds that high, then you're in (so it's your entry bar) and you also know it's an H1 or 2. So you have the two bars always to consider, and you are putting your entry buy stop order just above the high of each potential signal bar until you're hit.
The signal bar/entry bar terminology confused me until I realized that the first bar's high being exceeded is the signal, so he calls it the signal bar. The next bar (which I would have thought of as the "signal" bar) is the bar you enter on, so it's the entry bar.
I hope this makes some sense and that it helps in your reading. And I also hope it's right.
Perhaps some real Brooks traders can help.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
I answered and gave my view on what I believe to be true. People can use it, comment on it or ignore it.
To say "no one with real knowledge answered" is an opinion made about my knowledge and has nothing to do with the substantive discussion.
I really don't care how other people perceive my knowledge but we should discuss things on content and avoid (personal) judgement without substantiation. Thankfully the FIO moderators normally do a good job in this.
Long time users of FIO enjoy the free expressing of ideas and appreciate the forum as a great platform to share experiences and discuss ideas based on content without judging people's knowledge. Judging people will only result in experienced people (besides me) backing off. Best wishes.
Just so everyone knows, I had noted this but decided to let it pass. Perhaps I should have given it a gentle nudge at the time.
For newer members, it is important to understand that, unlike the usual free-for-all on the internet, there is a standard of civility and politeness that is insisted on in futures.io, I took @Koenigsac's comment as an unfortunate but not deliberately rude remark by a new member and decided to not comment. But I can see that it could also be read as an off-hand put-down, and apparently it was by @Mich62.
So, without being overly critical but just to be clear about the expectations, making negative remarks about others is not something that is welcome nor acceptable, and if necessary this standard is enforced. Please keep this in mind going forward.
Also to be clear, @Mich62 is a profitable trader using a number of price action methods in his trading journal, where he has posted his good and bad trades for some time. When an experienced trader offers help it can be valuable, even if it does not seem to answer the question or to speak to you at the time.
As to my own comment about "Perhaps some real Brooks traders can help," I was referring only to the fact that I am not one, and that my opinion therefore may not be correct, which in fact it may not.
Sorry for the long response, but I do want to emphasize the standard of civil discussion, and not come down too hard but still make the point.
I hope we will all be tolerant of each other and keep the discussion professional.
Thanks.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
Sorry Mich62 and anyone else who answered. I was not questioning your knowledge.
My question though, was how am I supposed to understand the Brooks books when in most every case where he mentions the L1,2 and H1,2 idea he points to a candle which is clearly not one. I got a good logical idea about it from bobwest which may be the real answer to my actual question.
Anyway, I give up on this site.
This is a thread to discuss one of the books of Al Brooks. It probably would be best if you read one of his books to get a better idea of the basic concepts, and then you will be able to post queries that are better based on the material.
What an H1 or H2 is, and what to do with them, or how to recognize a climax and what to do then, for example, may have taken Brooks a long time to explain, and may not be good questions to ask in isolation.
Nothing wrong with your asking them, by the way, but you probably will get a better answer in the books themselves. If someone responds, I hope it will be beneficial to you. But the books are quite detailed, and somewhat difficult, so answers to short questions out of context may not be that useful to you.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
If you look at today's equity-index futures, you are seeing a sell climax.
You can't always "know" that what you are seeing is a buy/sell climax though, like anything it comes with experience and the market is always subjective.
Like @bobwest said, the books will have better descriptions, but here's the general idea: