ya, it seems like the bible of PA trading. but definitely not for the beginner. but worth putting an effort to learn it. I did not his books difficult. maybe due to good day trading exp.
“If a High 2 long pullback fails, smart traders will assume that the market will likely have two more legs down. If you are an institutional trader, and you bought that High 2, you do not want it to fail, and you will buy more all the way down.”
On page 5 of "Reading Price Charts Bar by Bar"
The author was really referring to failure of long at High 2 and not failure of the pullback.
There are many such confusing lines in the book. The list of such statements is so big. One needs to read his book many times over and make ones' own summary like we did in college. But it takes a lot of time, since, there are too many things discussed, and, some of them are just vague observations which may not have much value in practice. He keeps repeating some things again and again over. For example" You need to follow every tick" "You cannot dismiss any bars as unimportant."
Actually, one needs to write a guide to understand this text book.
I believe his books have great insights but the language/editing part sucks big time for which Wiley charges us lot of money.