Al Brooks - Trading Price Action Trends

[NoDoji]

Quote from anituchka:

Hi, I have a couple of questions about H1,H2 in a bull trend.

Based on my Brooks-inspired trading plan, I would regard bars 42 and 43 on your chart to be an excellent long setup, and would buy the break of the high of bar 43, targeting a breakout of the previous swing high. I don't usually enter trades on the break of inside bars, though with all those successful tests of the same price, I might likely have entered early off a smaller time frame.

I would regard bar 50 as a riskier long setup because the breakout of bar 40 was weak and it's an inside bar. A survivable stop would have to be below the 42-45 low, and I'd prefer to see how price reacts to a break of bar 50 first.

 

[Laissez Faire]

Quote from oilfxpro:

Markets are highly manipulated, do you believe these manipulators will look at charts before manipulating?

Does it matter if THEY look at charts? That is not relevant.

Just got laid so I don`t care one way or the other.

Don`t even know why I`m posting.

 

[IanMacQuaide]

Quote from NoDoji:

Based on my Brooks-inspired trading plan, I would regard bars 42 and 43 on your chart to be an excellent long setup, and would buy the break of the high of bar 43, targeting a breakout of the previous swing high. I don't usually enter trades on the break of inside bars, though with all those successful tests of the same price, I might likely have entered early off a smaller time frame.

I would regard bar 50 as a riskier long setup because the breakout of bar 40 was weak and it's an inside bar. A survivable stop would have to be below the 42-45 low, and I'd prefer to see how price reacts to a break of bar 50 first.

My thoughts exactly, altho I can't express it quite so well.

3 in a row can GO!, with the proviso it's the 1st pullback in what looks to be a decent "new" trend. 2nd pullbacks have to be Prettier than bar #50, with more Strength shown than what is seen on that chart, for me to consider going LONG that 2nd pullback.
I like watching 5, 10, 15 and 30 Minute Charts, with entries on the 5, but sometimes the 10 will give a slight advantage on R/R, over the 5. Once in a while, even a 30 Min pullback is just too pretty to pass up. I like the TF, NQ and YM. I don't trade CL, so fwiw, imho and ymmv.

 

[Redneck]

Quote from anituchka:

for some reason, I can only attach one picture to my post. so here is another post.


1. Can bar 45 be considered a signal bar? It formed a double-double bottom with bars 42, 43 and 44.
2. Can bar 50 be considered a signal bar? Double bottom with bar 49?
3. If the answer is no, is there a H2 on this chart at all?

This post is gonna come off as me showing off - I'm not

I’m a dumbass redneck – I don’t know shit – but – I can read


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Bars 33, 34, 35, 36 – HL’s – put a trend line under em – long setup

Bar 38 – expect longs to defend 50% level of that bar( which they more than did) – long set up & long confirmation

Bar 38, 39 – expect same defense (which they did again) – long set up & long confirmation

Bar 42, 43, 44, 45 – horizontal line under their lows – long set up

Bar 51,52, 53 – extend out the trend line of 33,34,35,36 – long set up


Bar 40, 46, 62 – 1, 2, 3 – top reversal – short it

Bar 63, 64 – start another trend line down – short it


Each stop for above - place it just under the various lines ... or just above the top / down trend line - mentioned above

=====================

The above..., and obviously your chart;

Does not contain MTF
Does not include reading volume
Does not include reading the strength/ weakness reflected in each candle… in the distinct/ separate moves..., or in the overall move (excluding the the defense of 50% remark I made.., or the 1, 2, 3, potential top)
Does not include drawing a channel – and what that tells
Does not include connecting upper / lower pivots
Does not include the time of day
Does not contain reading the bars real time – and how they were made

================================

Further more - the MAs/ EMAs (whichever they are) – is another read onto themselves


So; even with most of the information missing – the language can still be deciphered… and the story read / traded

==================================

As for H1/ H2’s – they can only be identify in hind sight – when they are of little… to absolutely no use

=================================

Very Important:


Read bar by bar - to learn/ read PA… not to use the author’s setups – nor see a chart as he sees it – those are his…

You must create / learn your own view(s) Sir


RN

 

[wolfpacker]

Quote from Redneck:



Bar 40, 46, 62 – 1, 2, 3 – top reversal – short it

Bar 63, 64 – start another trend line down – short it

RN,

Great analysis!. What did you look at on these bars to give you reversal signals if you were looking at the hard right edge real time?

Thanks,

Wolf

 

[RedTankEra]

I've read some of Al Brook's work, he's got some interesting ideas as far as single chart reads go.

However, there's a massive fundamental flaw in his method and that's limiting himself to one chart.

The key to unlocking market structure understanding is found in putting all the pieces together from different time frames.

Just using the 5min chart is akin to driving at night without headlights.

Begin to add other time frames to get the whole picture of trends within trends and suddenly you just don't get xeon lights, but maps, a GPS, and a whole lot more.

It's a good start, but it's all it is, a start.

 

[Tonkadad]

Quote from RedTankEra:

I've read some of Al Brook's work, he's got some interesting ideas as far as single chart reads go.

However, there's a massive fundamental flaw in his method and that's limiting himself to one chart.

The key to unlocking market structure understanding is found in putting all the pieces together from different time frames.

Just using the 5min chart is akin to driving at night without headlights.

Begin to add other time frames to get the whole picture of trends within trends and suddenly you just don't get xeon lights, but maps, a GPS, and a whole lot more.

It's a good start, but it's all it is, a start.

RTE, perhaps you can expound upon your post with some charts?

 

[Swan Noir]

He has a good sense of what is going on with the 15, 60 has the daily indeliably imprinted on his brain before the open. He looks at other charts he just does not focus much energy on them. He is not oblivious to anything that makes his business hum.

I was in his webinar for two months. He is a very interesting guy and, I suspect, a phenomenally successful trader. But that "don't" make his methodology transferable.

He can't write "see spot run" without making it complex but he is a very smart well disciplined guy. He just can't write!

 

[Redneck]

Quote from wolfpacker:

RN,

Great analysis!. What did you look at on these bars to give you reversal signals if you were looking at the hard right edge real time?

Thanks,

Wolf

Hey Wolf

I know you meant well…, and Thank You Sir

But my “analysis” was nothing… fact is – there wasn’t any analysis Sir


To actually do analysis – there needed to be some/ or all – of the elements I described as missing

All I did was play the part of a story teller – and share price’s story – in words

=======================================

Do I trust price…, or not –> I do

Do I trade what I see.., or not –> I do

Did I simply read “the story” (price) and put it into words (which would of course be actions if I were actually trading) –> I did

========================================

To read the potential reversal on this specific chart


There is a 1, 2, 3 top... and price is making LHs

I simply stated what I saw – hence how I would trade it – at the moment anyway

Could I be wrong – absolutely

Do I know – absolutely not

=======================================

Now, if I were indeed trading this chart


First I would be looking at all the things I mentioned…, analyzing then reading them

Then making real time decisions / adjustments – based on what price is doing

While keeping my losers small… and having profit target(s) identified

===============

So the next logical question;

Why add all the omitted stuff if one chart will suffice

Because not adding it – is simply trading myopically – imo

Fact is; some do trade with one chart… even no charts – up to each of us to pick our own poison Sir


RN

 

[wolfpacker]

Quote from Redneck:

Hey Wolf


To read the potential reversal on this specific chart


There is a 1, 2, 3 top... and price is making LHs

I simply stated what I saw � hence how I would trade it � at the moment anyway

Could I be wrong � absolutely

Do I know � absolutely not

=======================================

Now, if I were indeed trading this chart


First I would be looking at all the things I mentioned�, analyzing then reading them

Then making real time decisions / adjustments � based on what price is doing

While keeping my losers small� and having profit target(s) identified

===============

So the next logical question;

Why add all the omitted stuff if one chart will suffice

Because not adding it � is simply trading myopically � imo

Fact is; some do trade with one chart� even no charts � up to each of us to pick our own poison Sir


RN

Thank you Sir...Well Said!!!!.... +1 on your thoughts on trading what you see and dealing with uncertainty.

I must say that I love your "does not include/contain" list from your previous post. I have found when I get "lazy" and do not do that work, my trading really suffers........ NoDoji is a pure master at those items... I would take it you are as well.

Thanks for sharing,

Wolf