Wednesday, March 31, 2010

Used Al Brooks H2 But Incorrectly

So I was thinking that I would take H2 here. Great idea, only it wasn't H2, it was H3. And taking H3 long is a bad idea since Al Brooks theory states that after a failed H2, everyone expects two legs down. Great.

So in this trade I was thinking how internals were only falling very mildly. Price was holding up ok. I was so near to stop out I decided to try and manage my way out of this. Then some internals dipped and price did not. I then widened my stop to under support rather than at it.

Then NYSE TICK dipped and price did not indicating some bullish strength.

Then to fix my inability to find highs, I placed a line on close for NQH10 on top of my NQH10 candle chart to drill home into my head where the darn highs actually are.

This helped because I also noticed that two legs down happened after the H2 failure. So like magic price held on and started looking bullish.

Price then popped up out of this range and I exited with gain on a new TICK high.

Not the best exit considering this is a trending day and I'm still exiting thinking 'range' in my head. Price continued up a lot and that shows I wasn't paying attention.

I was more concerned with the thought of my gain rather than the market telling me that it was ready to continue trending here. ** common error.

No comments:

Post a Comment