BAR BY BAR -- Al Brooks
- Thread starter Swan Noir
- Start date
oh, I wouldn't mention bar by bar book to wrbtrader or Gabfly1. Just the mention of Al Brooks name sets their hair on fire.
That's a little misleading considering I've never read the book and I'm only getting information about the book from those that have actually read the book.
The fact is I questioned you and a few others (e.g. NoDoji) about one specific detailed you and others had mentioned involving the use of indicators that was in contrast to others that are using Al's method and have read the book. You guys said Al Brooks does NOT use indicators. Yet, others said he does use an indicator. Therefore, I asked you, NoDoji and a few others for clarification if the guy used indicators.
The reply was "he does not". However, I get a private message from someone that saids he uses Al Brooks method and Al Brooks does use an indicator. Then I get another message from someone that uses Al Brooks method and saids he does use an indicator.
That prompt me to asked NoDoji a more specific question. I then asked if there's anything on Al's charts besides just price. The pause and reply was there was. I asked what it was that Al puts on his charts and the reply was "price moving average". I then responded that "he does use indicators". The reply I was then given from NoDoji was that he doesn't consider "moving averages" as an indicator.
The next reply I received from NoDoji and a few others was that the use of one moving average is ONLY as a "visual aid or to help put the price action within a framework". My reply was the following...
I didn't get a response to that question.
The point I'm making is that there's a growing list of traders the past few years that only use one indicator and call themselves "price action traders". Their usual explanation is that their use of the indicator or any other indicator really is only for "visual aid or to help put the price action within a framework" they see on their charts and that it has no impact on the trade decision itself.
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My argument is that if your trade decision is dependent upon using an indicator...you shouldn't promote yourself as a "price action trader" and you obviously shouldn't continue bashing the use of indicators.
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This is the same argument I have with those that don't believe in TA even though they use charts with just price and nothing else to help them to make trade decisions. I won't mentioned their names here at ET but they use the same excuse...they're only using charts for a "visual aid and that it has no impact on their trade decisions" and they strongly do not believe it's technical analysis...charts with volume or charts with a few trendlines or charts with a few key price levels being watched or charts for comparison to another chart or charts with fundamentals info annotated on the charts...whatever.
If such was true...they should be able to make their trade decision without opening and then viewing any charts. If they can't...they are using technical analysis. Therefore, via the same logic, if Al Brooks or someone using his method can make trade decisions without a "moving average" on the chart...they are a price action trader.
Yet, if they can not make that trade decision without the indicator...that's OK but don't run around bashing the use of indicators similar to those running around ET bashing the use of TA while using charts.
What prompt this discussion?
There was a prior thread here at ET where someone had layered his charts with about 10 price moving averages, a moving average on the volume histogram and some color coded variable on the bar chart itself...
Yet, he strongly believed he wasn't using indicators while openly bashing the use of indicators. It's ok guys or gals...nothing shameful about admitting you're still using indicators or technical analysis especially if you're profitable. Just don't reply to me that it's "only for a visual aid" while bashing indicators or TA.
Mark
wrb .... I see your point and you are clearly accurate. I am in Al's webinar everyday and let me factually tell you about the screen I see him use everyday. He trades a 5 minute ES chart and until recently had only a 20 bar ema (close) but recently added the same ema from the 60 minute time frame to his 5 minute chart. I believe he has volume on his smaller time frame charts which he refers to occasionally.
Al never bashes indicators. He makes it clear that he was not a success using a bunch of them but he also makes it clear that he knows that other traders do use them to great success. But the larger picture reminds me of the debate between vegetarians and vegans. Vegans frequently say that those that use dairy products are simply not vegetarians and they may be right. Yet clearly vegetarians and vegans have a great deal more in common that what separates them and certainly more in common than they have with a carnivore like me.
Frequently the arguments between the purist and those who generally subscribe to a concept become about how many angels can dance on the head of a pin. My guess is that Al would be about as successful without the ema on his screen since 90% of the time he would have a good sense if he where above or below it and by the rough approximate margin.
For $50 you can bu a back month of his webinar. It will tell you quite a bit about how he trades. I am not yet a success in this business so you can feel free to discount my opinion but while I may never be a vegan I also will never eat meat -- a rash of indicators -- again. What Al does is very in tune with how markets actually behave.