TYG's Story: Thoughts, Trades and Technicality

Trading Discussion Trade Journals
387

Hi @tomo22,

Reading his book, I will focus more on how he makes decision. I won’t follow his concept bluntly.
For example:

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I will try to figure out how it is used on properly. You have to be careful when he describes the concept, pay attention to the example he uses. He uses more on stock, while we use CFD, it will be chicken talks to duck scenario.

Another example:

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Look on how systematic his every concept. This is the most important thing from AI Brooks.

Last example:

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Can you see the similarity on how I plan my trade with his? But I can’t follow his rule at since he is using CAT (Stock Market).

For me, AI Brooks tells us how to analyze market systematically. He only gives you his method, for the purpose to show us the way he looks at market.

Like I told before, we need to have ability to see patterns. This is the patterns, something more fundamental, it’s not merely head and shoulder or tea cup with cookies. If we can breakdown the real message behind every AI brooks’ trading idea, we will have the essence on how to trader properly.

Many fund manager, I met, trades this way, almost half of them. The rest will be based on indicator or time based trading.

So adopting PA will let you adopt the skill of 40% of fund manager I met.

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388

hi @TYGMedia,

haha that is the issue, it can be very complicated sometimes. I agree he is very systematic. I’m not too much of a fan of his leg 1 and leg 2 method, i like how brooks goes into detail with each specific candlestick and how he acknowledges each candlestick that passes not just the obvious ones.

389

Hi @tomo22,

I agree with you. When we read a book, we tend to interpret the meaning word by word, But, we actually need to digest them to find the essense.

For example, AI Brook, will show you each candle, we need to break down, the candle to LTF, so we can see the original idea to the candle.

Example:

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Base on the description, it’s all about bar / candle. The question, will it apply to all instrument? Or just particular, as in example?
If you try to find the pattern in Forex, it will fail. But when you do it in XAUUSD, H4 and above, you can see it. Reason is example, AI Broke is close to Stock Market. XAUUSD has similar patterns to stock market.

So, when you try to digest the idea, try to find out this movement in Forex Pair. You can start it from daily chart. Once you saw it, you go to LTF. You can see, AI Brooke is actually talking about correction. THe indications are:

  • It’s talking about Reversal Bar,
  • It’s always wisest to trade with the trend. (Second Paragraph)

Try to look at any chart find out how it works.
If we read everything text by text … we will be trapped in the concept and example only :slight_smile: .

Note: There are other good articles from Jared Martinez, you can consider. Since they are real trader, we need t learn how they see thing. They are old trader, they have no clear rule to open a trade. To learn from them, we need to learn from how they think / analyze market. Old traders are different from trader nowadays. Old traders mostly have a very complicated rule. They won’t put a brand just like ICT, SMC with one super rule for all type of instruments.

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390

hi @TYGMedia , yes i agree, FX will react different to AL’s teaching because its a different market. Question is what is similar and different. I believe his core PA teachings such as inside and outside bars, signal, entry, setup, reversal bars can somewhat be applicable. However, his leg 1 and leg 2 stratergy or ABC may not be as applicable to FX since that may be a certain pattern that exists in Stock market only.

It is similar to Richard Wyckoff. He specializes in Stock market similar to AL, he teaches AMD in summary ofc, however, wyckoff cant be exactly printed the same way to FX like it can on Stock market.

i will check Jared Martinez out and look at some of his studies. Thank you!

would be interesting to ask @Sufshiken on his opinion, since he used to trade stock market and moved to FX

1 Like
391

Hi and thanks @tomo22 for inviting me to your and @TYGMedia’s conversation and asking my opinion.

I didn’t read Al Broke, Jared Matinez, or Richard Wyckoff, so I am not the right person to comment on their trading methodologies.

When I started stock trading in 2006, I had no access to technical analysis related to the KSE100 Index (either in my country or any international website/platform).

So, I developed an SMAs & MACD-based Technical Analysis system on MS Excel after exploring the Web and gathering the formula/other details of various indicators from there. It wasn’t as modern and sophisticated TA system as we use these days. I had to update it manually daily after the closing of the market. It worked perfectly for me until I discontinued trading Stocks,

I agree with @TYGMedia that the old traders were real traders, who provided us their various methodologies according to their experience. These are still effective and in use, however, new traders have changed these terminologies as per their Brands (I like the word “BRAND” used by TYGMedia)

So, I always tried to get ideas from them and then applied/modified their trading methods according to my style after backtesting. I prefer to use a Simple strategy than a Complicated one, as mentioned by TYGMedia:

In the old days, most traders used one of these methods successfully and are still using modified versions of these methods while trading in any financial market.

However, it has become very hard to do Scalpe/Day-trading according to these methods as per the Books, when Institutions and Individuals are using Algo/EA/Bot trading, especially on 15M or lower TFs.

So, we should streamline our trading method/style according to the current scenario (especially for CFD/Spot Forex trading).

Have you heard about the KISS method?

Updated:
I think no trader can become a master of all methods/strategies, so we should be strict about mastering only one or two of them as per our trading style.

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392

Hi @Sufshiken,

I’m agree with you. I call it as trading philosophy. From one philosophy, we can create many strategies. A trader needs only one trading philosophy.

I use many indicators, but the indicator must inline with PA. Sometime, we can see more entry points for PA by using indicator. For example, MA 60 on USDCAD for some TF, is very helpful to show more entry point.

For KISS, is it the K… It Simple Stupid thing ? :smiley:
When we understand PA, we know that we need more thing to have better trading ground. The KISS principle will automatically fail to survive in the long run. But, it’s still workable for some period of time.

Market is very big, so everything can actually work. But when we want to be a professional trader, we need something fundamental to use.

I used to make an analogy about throwing something into a lake. Any body can throw a stone into it. Even a dog can bring a stone, drop it into the lake.
When we have target, thing become different.

For example we want to catch fishes, we need to know which part of the lake has fish, then we throw a net. If we want to swim, we have to learn swimming then throw ourselves to the lake.
The same to trading, we need to learn the market, before we have involvement with them. Back to KISS, it’s too ideal. The questions before we use it, on which instrument will it work? Which TF? On what market condition(s) to apply? … otherwise we are stranded in the middle of desert … :thinking:

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393

Agreed :+1:

Yes, you are absolutely right. I use Elder Alexandar’s multiple-time-frame method for my trading. I can do it using top-down analysis, which I do.

However, I have also plotted two moving averages in my system, which helped me check that the LTF is aligned with the HTF.

Here, the KISS principle means to use the required tools that help and align with our trading philosophy. When we try to add irrelevant tools or different methods/strategies, it may create Analysis Paralysis.

Update:
I came across the following post, which I think is relevant to our recent conversation, isn’t it?

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394

hi @TYGMedia, thought this was an interesting concept i was thinking about, Trading is kind of similar to Matryoshka doll’s. When using top down anaylsis we always find MR inside another MR for instance 15m MR inside 4hr mr or 1hr MR, similar can be said with SNR i thought this was interesting.

Same can be said with patterns. when looking at HTF MR such as 4hr we can observe RBD inside. Looking at LTF such as 1hr or 15 we can observe multiple RBD signaling reversal, however, the HTF will show true reversal.

also after reading more of AL brooks, i believe adding a trendline can assist with finding MR in specific base. Where the trendline is broken, breakout usually we will get base, through using trendline breakout we have located base.

395

Hi @Sufshiken,

Yup, accidentally, Ms. @Penelopip started the same topic :sweat_smile:

I am actually curious, how many real trader in babypips here. It seems, less and less people is active here. For me babypips is a good place to find trading buddies.

With this principle, I believe it may work. :slight_smile:

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396

Hi @TYGMedia, the above post, and link were posted in the same thread, which Ms. Penolopip has started this week.

Yes, it looks to me that most real and experienced traders are not active on BP right now. Perhaps, they may have moved to some other Forums.

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397

Hi @TYGMedia, other than brooks what are some of your favorite books you have read and recommend?

398

Hi @tomo22,

You may find other perspective from Kathy Lien. Hers method is different. But hers fundamental perspectives are workable.

Note: I have no relation with her. She was one of my mentors 2006-2008. She has commercialize service and I have no intention to promote or advertise anything about hers … :grin:

Kathy Lien is very detail, calm and precise to open position. She taught me, every strategy can be profitable, you only need to work on it and stick to the rule.
She helped me to strengthen my discipline and how to improve my trading stats.

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399

hi @TYGMedia, thank you.

i wanted to ask a question. How can we know if market is oversold/overbought using PA. I understand indicators such as RSI provide infomation like that however, i wanted to know if theres another way to identify this condition. Such as if a bars high is near the close? or perhaps a large spike trend bear/bull bar may lead to this?

larry williams spoke over terminal highs and lows the bar highs would be located near its close which has a common relationship with a trend being oversold/overbought, however, i wanted to grasp your idea

400

Hi @tomo22,

That will be based on pattern. The rule is

  1. You look for MR on your trading chart.
  2. Go to LTF look for RBD/DBR.

The tricky part is looking for correct one. I can show you on live chart, do you have discord or anything to share screen?

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401

Update:

When I was active at BP during 2017-2020, these pro and experienced traders/members actively participated in the forum:

@Clint @peterma @PipMeHappy @TradeViper @Falstaff @tommor @manxx

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402

Hi @Sufshiken,

Thanks for the information. I hardly find them active in BP. Perhaps they are silent trader now. :slight_smile:

BP is felt like a place for trader to pass by. But I think, too active in BP is also not good, Many will assume we want to sell something :sweat_smile: small percentage of them will make noise with their toxicity, and they are enough to give distraction.

Last time I joined a trading group. When the group was small, it was very enjoyable. However, the group owner opened the group for public, thing started to change. A happy place became arena. :sweat_smile:

It seems like the trend has changed. Dunno, how many real traders are in BP. But it feels different compare to 2006, when I was learning cowabunga from pipin … they are legend, wondering where they are now. :thinking:

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403

hi @TYGMedia, yes i have discord its tomo0479

404

Still here (occasionally)!

No, not a clone… and yes, that is me in my profile pic…

And do not forget that manxx is now @SovoS! Also, you forgot @SimonTemplar (legend)! There were others… @PipNRoll , Lexi, and TurboNero… Also Bob Bill Brown…and @WinPsych , and @Leg0nd …

Too many to name!

PipMeHappy

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405

Hi @PipMeHappy, nice to see you are still on BP.

Yes, you are right, too many to name. However, thanks to mention some of them here.

I heard that you all moved to some other forum. Are other members have also returned to BP community or still there?

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406

Hi @PipMeHappy,

Nice to know you. It’s glad to know a trader here :smiley:

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