I have bought Al Brooks' Trading Course

[Laissez Faire]

I was always adding money into my old daytrading account because of my mistakes, promising myself I wouldn’t make them again, then turning right around and doing it again. I wasn’t learning a damn thing.

You, like other 'price action' traders talk a lot about breaking your rules. I recognize myself here.

IMO, this is what happens when you're using a subjective methodology or perhaps don't even really have a methodology other than interpreting charts. You're just shooting from the hips. A lot of people bash indicators and it seems like these price action guys take a lot of pride in not using one, i.e., "Oh, I only use a naked chart. PURE price action, baby." I don't agree with this.

What an indicator can do is add clarity and objectivity. What if your method was as simple as buying or selling whenever you got a VERY clearly defined signal? Such as a moving average cross-over system?

Would you be entering when the averages are a mile apart or would you simply wait for your signals to align and then execute? Especially if it's proven to be profitable through rigorous backtesting and forward-testing? I'd wager to say you'd see yourself breaking your 'rules' a lot less.

I'm talking to another guy who had a very basic system to keep himself out of trouble. I don't recall exactly what it was, but he used the open price as input and I believe he would only go long below the open or short below the open. He had done a lot of study on the opening period. It wasn't as simple as this, but the main idea was that he had an objective way to look at what was happening and he had clear criteria for where he could enter. A system.

I'm not saying the solution is in indicators or moving crossovers, but IMO, you need a system that is as objective as that. It gives you clear buy and sell signals that are NOT subject to interpretation.

There is no reason I shouldn't be able to succeed on the short term plays if I can on the long term. I think it's just easier to break rules short term trading because I'm take so many more plays (which means more opportunity to break rules, though I'm trying to view it as more opportunities to not break rules.)

Actually, there are plenty of reasons if you don't have a proven methodology. : )

But yes, the main reason is that the margin-of-error is considerably lower compared to higher time frames and price is MOVING and often FAST. What you need is a good system that is worked out through rigorous backtesting, forward testing and so on. When the market opens you simply execute it according to a plan. There's no thinking. No interpretation. You just execute whenever you get a signal. Your thinking was done PRIOR to the market opening.

The reason larger time frames is easier for most is because you have the time to calmly think through your decision. You're not pressured in the same way as with day trading.

 

[debitspread]

I maintain that the definition of technical analysis is forecasting future price movement based on price history whether that's what happened a millisecond ago or one month back (or longer).

Chart analysis is merely a subset of technical analysis.

They didn't want to say too much about their methods, obviously, but their background is in mathematics (PhDs a few of them) and they said that it was mostly based on statistics and typically multi-dimensional analysis of convoluted time series.

Sounds like TA to me, although perhaps not in the way most people think of TA, i.e., chart reading.

You can "maintain" whatever your want, but "multi-dimensional analysis of convoluted time series" at "millisecond" granularity isn't the generally understood meaning of TA. There have been zillions of books on TA published over the past 25 years and none cover that ground. Your "definition" empties the term TA of all meaning, just turns it into a synonym for quant analysis.

 

[Laissez Faire]

You can "maintain" whatever your want, but "multi-dimensional analysis of convoluted time series" at "millisecond" granularity isn't the generally understood meaning of TA. There have been zillions of books on TA published over the past 25 years and none cover that ground. Your "definition" empties the term TA of all meaning, just turns it into a synonym for quant analysis.

Ok.

I was merely using Investopedia and Wikipedia's definition.

How would you define TA, then?

 

[debitspread]

Ok.

I was merely using Investopedia and Wikipedia's definition.

How would you define TA, then?

I would refer you to Marketsurf, who has explained this many times over.

 

[Laissez Faire]

I would refer you to Marketsurf, who has explained this many times over.

I'd rather you not.

 

[nakachalet]

JUST AN OBSERVATION FROM AN OLD TRADER:

i beg all you learned trading gurus and wizards and wannabes and those in between:

inasmuch as i presumed myself to be, perhaps, rightly or wrongly, the longest living small private trader around here (bought 1,000 shares of intel for about 120 usd, and ef hutton brokers told me that it would not be a good investment and that i could do much better
doing what ef hutton said....; now you can pretty much guess my chronological age, oldest maybe ?);

and taken into considerations, all your wonderful insights into arriving at the level of consistent profitability which involve your very own or others' numerous ideas, proposals, setups and endless who said what, who wrote what and which gurus did what....

but most importantly, lacking what you, yourself personally have done, did or do.... toward your very own trading profitably and consistently.... (no finger pointing, nor blaming here, K?);

come on now, my trading comrades, consider all those 405 entries here....

how many entries have really helped you or guided you or sheded light upon you.... toward becoming a more.... consistently profitable trader.....?

let's come to our own senses, my comrades.... and rather quickly as well....

do whatever pleases you, inspires you, enriches you and levitates you....
toward whatever trading dimensions you personally aspire to become ultimately....

as for me, for the time being, am taking my girl friends, harley and davidson heading toward krabi and talay trang for the weekend.... wanna join us, comrades?


SHOULD OR SHOULDN'T EXIT HERE ?

 

[Wingz]

Regardless of peoples experiences or attitudes towards Al brooks. His ridiculously difficult to read material and incredibly boring videos were very helpful to me.

I've been a prop trader for the last 4 years and Al Brooks is the only 'methods' guy I ever come back to ( I've read approx 150 trading books).

He explains the context of the market, what the big bulls and bears are thinking - how size moves the market - that more than anything provided me with a unique perspective and paradigm shift that had an edge.

I'm finally consistently profitable and I think I owe a lot of the 'PA' aspect to Al Brooks, regardless of whether he makes money or not. I really don't care, I only care about myself in this context and I've done well learning from him.

I recommend his stuff.

 

[Visaria]

The reason larger time frames is easier for most is because you have the time to calmly think through your decision. You're not pressured in the same way as with day trading.

V true. This is precisely why i don't understand those who operate from a 5 second bar chart lol.

 

[Visaria]

I'm well over half way through Al Brooks's course...giving it a break for the time being. Will resume watching his videos next week. Atm, he has given me plenty of food for thought in terms of technical analysis concepts and ideas that i will review this weekend.

 

[J_Smith]

You, like other 'price action' traders talk a lot about breaking your rules. I recognize myself here.

IMO, this is what happens when you're using a subjective methodology or perhaps don't even really have a methodology other than interpreting charts. You're just shooting from the hips. A lot of people bash indicators and it seems like these price action guys take a lot of pride in not using one, i.e., "Oh, I only use a naked chart. PURE price action, baby." I don't agree with this.

What an indicator can do is add clarity and objectivity. What if your method was as simple as buying or selling whenever you got a VERY clearly defined signal? Such as a moving average cross-over system?

Would you be entering when the averages are a mile apart or would you simply wait for your signals to align and then execute? Especially if it's proven to be profitable through rigorous backtesting and forward-testing? I'd wager to say you'd see yourself breaking your 'rules' a lot less.

I'm talking to another guy who had a very basic system to keep himself out of trouble. I don't recall exactly what it was, but he used the open price as input and I believe he would only go long below the open or short below the open. He had done a lot of study on the opening period. It wasn't as simple as this, but the main idea was that he had an objective way to look at what was happening and he had clear criteria for where he could enter. A system.

I'm not saying the solution is in indicators or moving crossovers, but IMO, you need a system that is as objective as that. It gives you clear buy and sell signals that are NOT subject to interpretation.

There is no reason I shouldn't be able to succeed on the short term plays if I can on the long term. I think it's just easier to break rules short term trading because I'm take so many more plays (which means more opportunity to break rules, though I'm trying to view it as more opportunities to not break rules.)

Actually, there are plenty of reasons if you don't have a proven methodology. : )

But yes, the main reason is that the margin-of-error is considerably lower compared to higher time frames and price is MOVING and often FAST. What you need is a good system that is worked out through rigorous backtesting, forward testing and so on. When the market opens you simply execute it according to a plan. There's no thinking. No interpretation. You just execute whenever you get a signal. Your thinking was done PRIOR to the market opening.

The reason larger time frames is easier for most is because you have the time to calmly think through your decision. You're not pressured in the same way as with day trading.

I have a good idea of what that other person is talking about, and all I will say about the person, without even seeing one word he says, is that he is no fool!
J_S