Tribute to Brooks

longandshort said:
then he has changed his tune lol

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He does say that in his course. When I look at "institutional order flow" definitions that is not what is meant.

He is not at all suggesting that his method is based on analysis of "institutional order flow." What you have quoted there is his acknowledgement that most trading volume is institutions and most if not all institutions are profitable. If most volume is institutions and most institutions are profitable, then when the market rises most institutions are buying. That is all he says.
 
below in blue lines is a tight channel.....Brooks calls it so and says in such a tight channel only buy.

if you say PA does not work then it means that all buys will lead to losses in this bull tight channel.
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I contend that if Brooks PA is used and that you do not use anything else along with it [ including your own intuition or brains or reasoning ] you will make money
 
Brooks also says keep selling below/buying above bars until the market tells you to do otherwise.
this is great stuff.

because traders are always outsmarting themselves by trying to out guess the market !

traders also convince themselves of market direction even though PA is saying the opposite
 
NumberZ said:
He does say that in his course. When I look at "institutional order flow" definitions that is not what is meant.

He is not at all suggesting that his method is based on analysis of "institutional order flow." What you have quoted there is his acknowledgement that most trading volume is institutions and most if not all institutions are profitable. If most volume is institutions and most institutions are profitable, then when the market rises most institutions are buying. That is all he says.
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Which is incorrect. Since he makes that a fundamental pillar of his pa theory, it makes everything else suspect. He doesn’t know what causes patterns on a chart. He’s making assertions and guesses, and because they’re not rooted in a robust analysis, the difference between his expectations and reality is quite far off. But you can still believe him if you’d like— plenty of folks have stranger beliefs.
 
padutrader said:
I contend that if Brooks PA is used and that you do not use anything else along with it [ including your own intuition or brains or reasoning ] you will make money
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Nope. He doesn’t know what drives prices, doesn’t understand order flow and volumes, and is literally making shit up. You can believe him if you’d like, just like some people want to believe in wing chun masters. But on the street, your “chi” will not help you when you run into someone trained in mma.

The real market wizards are not known to you and hide themselves amongst the noise. When I route orders I am not submitting limits — instead I use tactics to take all available liquidity at once, or spread out my order as a % of volume, etc. Larger firms conduct rigorous transaction cost analysis to avoid market impact, and use dark pools which lag in print. Market makers are using ultra low latency systems and resort to smart order routing with rebates as bait to get tells on flow, along with other techniques.

The world of trading is vastly different than what Al brooks thinks it is. If you are serious about trading then you need to wake up and realize this.
 
longandshort said:
He doesn’t know what drives prices, doesn’t understand order flow and volumes,
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PA is the result of volumes and order flow [and all of market internals] . why take an Xray when you do not need it.

and it is you who are chasing ghosts because all you need is PA
 
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