Why do you think this system offers an edge? In what way does a second entry improve your odds of winning? The 2nd entry paradigm seems to be based on an arbitrary decision with no statistical evidence to back it.

VinceVirgil 

That's exactly right. My Slow Hand Method is from Al Brooks Price action Bar by Bar and Macks, Price Action Trading Systems adapted for the CL using the 800 tick chart. But that being said, it is about trading the price action. VV

Might be a silly question (apologies in advance if it is) is there any other supplemental reading to AL Brook and Mack?

I have been reading The Art and Science of Technical Analysis by Adam Grimes and its been great for overall market structure understanding but not for scalping exectutions.

I've also had difficulty getting through Price Action Bar by Bar - any tips there? i have heard that his live video lessons are a much more palatable representation of his ideas.

Thanks in advance for any feedback. Cheers.

trendisyourfriend 

Why do you think this system offers an edge? In what way does a second entry improve your odds of winning? The 2nd entry paradigm seems to be based on an arbitrary decision with no statistical evidence to back it.

Is there any statistical evidence in reading a language? 2nd entries is a trading plan for entries. After watching the market movement for years and learning the language of it, then you will see 2nd entries does offer an edge.

trendisyourfriend 

Why do you think this system offers an edge? In what way does a second entry improve your odds of winning? The 2nd entry paradigm seems to be based on an arbitrary decision with no statistical evidence to back it.

It offers an advantage when used in an appropriate context. However recognizing the context is largely discretionary, which is the reason why the method looks simple but is difficult to implement.
In this way, I could take any chart pattern and turn it into a "system".

crs247 

It offers an advantage when used in an appropriate context. However recognizing the context is largely discretionary, which is the reason why the method looks simple but is difficult to implement. In this way, I could take any chart pattern and turn it into a "system".

I agree with you. If there is sufficient momentum and volatility, you can enter the market at any point and execute a successful trade, especially when supported by significant volume. There is no need to wait for a 2nd entry pattern. In fact, it can even make you miss a beautiful trade.

In my opinion, it is more a question of psychology. If the pattern comforts you, then it is okay. However, in itself, the pattern is meaningless.

Today is a good example of what i am trying to express. From 4:35AM (New York time) onward, you could have opened a trade anywhere to the long side and make a nice profit.

The 2nd entry pattern is not different than using a break out pattern. What counts is your ability to read the momentum, volatility and volume.

The idea that a certain pattern gives you an edge could be claimed of just about any pattern. What moves the market is not patterns, as much as we would like to believe that. The market is moved by the auction... sometimes that matches a certain pattern, but is not the pattern what caused the move. I know that fans of patterns will not like to hear what I'm saying, but if we are honest with ourselves... we will come to the same conclusion.

P.S. Delta and volume are also key in determining price movement. If anything, that would give you an edge.

Tangotx 

The idea that a certain pattern gives you an edge could be claimed of just about any pattern. What moves the market is not patterns, as much as we would like to believe that. The market is moved by the auction... sometimes that matches a certain pattern, but is not the pattern what caused the move. I know that fans of patterns will not like to hear what I'm saying, but if we are honest with ourselves... we will come to the same conclusion. P.S. Delta and volume are also key in determining price movement. If anything, that would give you an edge.

I agree that patterns don't move the market. It seems to me that the market's movement creates the patterns. Chart patterns are representations of human behavior (as well as human-programmed algos), and humans tend to respond to similar stimuli in similar ways. We also don't usually like to change very much as a species, which is why some classical chart patterns (behaviors) still show up in today's world. Of course, we can learn, and we can change, and I think that's why some patterns either stop working or develop quirks that require adaptation or rediscovery in order to trade them. Or not, I don't know. Just my opinion!

trendisyourfriend 

I agree with you. If there is sufficient momentum and volatility... What counts is your ability to read the momentum, volatility and volume.

What indicators do you use to

Quoting 

read the momentum, volatility and volume

DavidHP 

What indicators do you use to

For that i just need to look at the bar size and volume compared to historical bars. Just look at today, do you need an indicator to gauge these factors ?

I use an anchored VWAP (to RTH Open, and secondarily Globex open) to judge momo, vol and volume all in one.