My Millionaire Goal

If you’ve been following my posts, you’ll know that I’m quite a fan of price action lately… and I’m not alone… Al Brooks is one of the main person I’m learning from…

I did some Google-ing and found that he has quite a fan-base… found some articles and presentations by him… downloaded them from these two forums… take a look if you are interested in price action as well…

http://www.traderslaboratory.com/forums/f104/futures-i-trade-show-brooks-book-6008.html

http://www.brookspriceaction.com/

btw, I entered my first real forex trade yesterday… made a small profit…

First Real Trade

1. MACD Divergence
2. Fibo 61.8
3. Small reversal bar near the high of a breakout bar

I probably won’t be posting my future trades here… unless there’s something to mention about that trade…

EURJPY 12 Mar

Here’s my interpretation of price action for the chart above:

1. Bar A seems to suggest a bear reversal, which was supported by MACD divergence and resistance at the Fibo 50 level.
2. The next bar, Bar B broke below the low of Bar A. In fact, it broke below the low of the previous 5 bars, further lending support to the idea of a bearish reversal. It also suggests that the breakout at Bar A is a failed breakout.
3. Yet, by the close of Bar B, a totally different picture emerge. The bulls fought back and managed to close the bar near the high. This suggest that a failed failure (a failure of a failed breakout) might be happening. A failed failure is a very reliable signal and in this case, we expect many bears to be trapped.
4. The next bar had the same high as bar B.
5. Eventually, Bar C broke above the matching high of its previous 2 bars. 2 matching highs is actually equivalent to a double top on a lower time frame. Breaking above this double top makes Bar C the perfect signal to enter long.

USDJPY 12 Mar

1. MACD Divergence
2. Bar A broke above Fibo 61.8 and a previous high
3. However, next bar is a small bear reversal bar.