What are some useful things learned from Al Brooks price-action books?

Was reading about using machine learning to improve systematic trading ...and noticed a reference to a component which I originally learned about in 1 of Brooks books.
 
SteveM said:
One idea presented by Al is that if the market is in a strong uptrend as defined by xx consecutive bars all having lows above an xx period moving average, and then the market pulls back to the xx period MA, there is at least a 60% chance that the market will get a bounce back in the direction of the original trend rather than continuing lower...well I've backtested this concept on multiple instruments using various timeframe/MA period/entry-stop loss-profit target combos and have found there absolutely is validity in the concept, and that it is possible to structure profitable trades off of it. So at least in this case you are wrong.
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SteveM,

How many trades do you backtest for statistical significance?
 
silveredge said:
willing to give AL Brooks books for free (pdf). email me
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no no no!!
I have already destroyed hundreds of worthless hard copies and soft copies already.
so no more such thing for me.

are you still around?
 
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I found this thread googling for info on brooks, since there was none. Annoying that there is not some basic indicator of how successful each method is. In medical, the field he's from, all medical procedures are studied and reported on for effectiveness. True, skill varies per person, but some broad or relative level of measure is better than looking at 1000 methods and guessing.
 
volpri said:
Unfortunately, there is no other way but hard work, dedication, and practice. Around 1500 pages in the trilogy depending if you are examining the hardbacks or digital versions. I have written in the first page of my hardback Brooks book on "Trends" (of the trilogy) "Nov 27, 2011." So you can get an idea how long I have been at it. Prior to that date I had bought and studied his first book "Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader". That first book was a humdinger of a book and sounded like a Pub Crawl by the title. LOL.

SUBSEQUENTLY to those books I bought the second and third books of the trilogy. Plus i bought and studied the videos. I have the trilogy in hardback and also purchased the digital version of each book so i can study and make notes and don't have to haul the monster hardbacks around, as I travel alot. Plus i can digitally call up my notes.

Bottom line; they are works to be studied and annotated, not read casually. University level stuff on PA. To understand it requieres studying each page and making notes and thinking through the concepts. It is not for the weak minded, roaming mind, or lazy brain. ROFLMAO

You will have hundreds of pages of notes when finished studying each book. Then you gotta practice all that on a Sim before going live.

There is a best taxonomy to approach the works (IMO) that may help one getting to practice sooner.

Here is a sample text out of one of the books so you may see what I mean:

"If that bear breakout has follow-through for a few bars and then there is a strong bull reversal, this could set up a failed breakout and a possible low of the day. If the rally lasts only a
bar or two and then there is another strong bear trend bar, the failed breakout might
be failing. If so, shorting below that bear bar is a breakout pullback entry"

- "Trading Price Action Reversals: Technical Analysis of Price Charts Bar by Bar for the Serious Trader" by Al Brooks

Expressed Brooks style with abrev it renders:

An opening BO that fails and becomes a FBO and that FBO fails and becomes a FBO F then the FBO BECOMES simply a PB in opening BO, therefore becoming a BO PB entry.

Therefore, any brave soul contemplating learning trading "a la mode" Brooks style best make haste and get started for it is a road of many years. If one waits too long before starting ones brain can get fossilized.

The good thing about it is: IMO you do not need, nor will need, anything else ...at least in our lifetime.

NOTHING ABOVE IS ADVICE. JUST AN OPINION. YOU ARE FREE TO TOSS IT IN THE TRASH CAN IF YOU LIKE. IT IS ONLY FOR INFORMATION AND SIMPLY MY POINT OF VIEW ON THE MATTER. A POTENTIAL AFICIONADO MAY FIRST JUST WANT TO BUY 1 BOOK AND WATCH SOME OF THE FREE YOUTUBE VIDEOS OUT THERE TO SEE IF IT FITS THEM. IT CERTAINLY IS NOT FOR EVERYBODY!

Good luck!

I'm out of here. Got some work to do then gotta study some more on trading "Brooks style" It is saturday you know.

Hope i answered the OP POSTS and Algo's post in clear enough terms.


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What's FBOF and PB please do tell, i'm reading al brook's bar by bar book rn
 
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