Although we trade very differently, I am quite a fan of Al Brooks first book, “Reading Price Charts Bar by Bar“.
One of his quotes which has stuck with me over the years is the following:
- Countertrend setups in strong trends almost always fail and become great With Trend setups.
This quote came to mind earlier in the week, as I took a counter-trend entry against a strong trend, despite my predominant thought prior to entry being “This is too obvious. It has to be a trap!“.
The drop from point 2 was just over 30pts (120 ticks) in 15 minutes. Ok, it’s maybe not the strongest trend. But there was very little opportunity in the way of pullback entries SHORT. And bears still felt in control.
And that’s when the Al Brooks quote came to mind.
- Countertrend setups in strong trends almost always fail and become great With Trend setups.
The outcome:
Happy trading,
Lance Beggs