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Does anybody else also have Ali's BO Whitepaper? If so why have such an emphasis of 2nd bar(FT bar) if entering on BOs has better results?
Hi. I've been studying the BO whitepaper for a while and currently working on my own BO+FT system.
What I have noticed is that the setup success significantly depends on the quality of the FT bar. Even relatively weak BO bars that get good FT, have a high chance of success.
It is true that entering on the BO bars can give better results as you get better RR ratio. But the big question is: are you good enough in reading PA to tell which BO bars are likely to get FT or second legs? I think that's the difference between us and Ali - he can consistently pick BO bars with high probability, while most of us can’t.
A single BO bar (even a strong one) without FT is just one bar, and if it's not in the right context, the very next bar can be equally strong opposite bar. But when you get strong FT, then you know traders entered in the BO direction, which means higher odds of a second leg.
Trust me, it's not easy to pick the right ones even if you wait for FT 🙂 Basically, the more info you have, the higher the probability of success, but the less profit potential remains.
1. If you are very good at reading PA and can anticipate with high probability which BO bars will get FT - enter on the BO bar for better RR.
2. If you want higher probability of success - wait for strong FT. But higher probability always means worse RR.
3. If you want even higher probability (and even worse RR) - wait for a 3-bar micro channel.
Hope that helps 🙂
Thank you for the detailed response. When you mention a weak breakout bar followed by strong follow-through, do you mean that both bars move in the same direction, with the first bar being weak and the second bar is the actual BO bar(above avg size)? If not is that also considered BO with FT?
try here https://www.brookstradingcourse.com/trading-strategies/5-steps-to-finding-todays-trades/
and here https://www.quantsystems.ca/article-becoming-a-professional-price-action-trader
quote... """Setup
Signal
Thank you for your response. Could you clarify how that connects to the original question?
