It seems that Alien's hook trading has been the hot issue recently. I just want to add some points that can dramatically increase your chance of success trading these setups. (assume you are looking at an uptrend)
1. Do not take hooks when price is making higher lows
2. Understand the head and shoulders pattern because some of the best hooks happen right on the head
3. Do not take hooks because they are hooks there must be some strong resistance preventing the price to go up always draw important horizontal support and resistance lines on your chart and get used to their presence because they save you and make you money
4. Draw trend lines and wait for the price to break it after the hook
5. Divergence between price and oscillators is a good sign of reversal but not every divergence is going to lead to a reversal nor every reversal happens after a divergence
6. Always look at how far the price has moved for that period of time for example if the average daily range is 150 pips and price has moved 140 pips and suddenly you see a nice hook you cannot expect the price to reverse suddenly specially when you are near the end of the most important sessions
7. Be realistic about your TP. Usually reversal patterns can move to fibbonacci extention 2 when you draw your fibbonacci extension from the top of the highest candle to the up trendline that is going to be broken
As I said before if you are not familiar with some of these concepts stop trading live. We Persians have a famous idiom which says "it is OK not to know something, But it is bad when you don't ask for help".
1. Do not take hooks when price is making higher lows
2. Understand the head and shoulders pattern because some of the best hooks happen right on the head
3. Do not take hooks because they are hooks there must be some strong resistance preventing the price to go up always draw important horizontal support and resistance lines on your chart and get used to their presence because they save you and make you money
4. Draw trend lines and wait for the price to break it after the hook
5. Divergence between price and oscillators is a good sign of reversal but not every divergence is going to lead to a reversal nor every reversal happens after a divergence
6. Always look at how far the price has moved for that period of time for example if the average daily range is 150 pips and price has moved 140 pips and suddenly you see a nice hook you cannot expect the price to reverse suddenly specially when you are near the end of the most important sessions
7. Be realistic about your TP. Usually reversal patterns can move to fibbonacci extention 2 when you draw your fibbonacci extension from the top of the highest candle to the up trendline that is going to be broken
As I said before if you are not familiar with some of these concepts stop trading live. We Persians have a famous idiom which says "it is OK not to know something, But it is bad when you don't ask for help".