Why doesn't Al Brooks use volume analysis concepts?
- Thread starter Saigyou_123
- Start date
However, I remember reading in Anna Coulling's book that, even though exact volume is not available for FX, she felt that close enough (e.g. volume data as provided by whatever exchange she was using at the moment) was good enough.
If Anna Coulling's theory is correct, then we would accept the same for cryptos, wouldn't we? Most people probably look at volume data from Coinmarketcap and Binance.
I suppose this is a ringing endorsement for Al Brooks's materials?
I must say that Al Brooks's book has been a bit dense so far. At least for someone like me, who am slow to understand things, it takes at least four or five rereads plus searching the internet to get through a chapter, and even then I am not sure I totally understand.
It depends on your definition of scalping. I, on normal day see scalping as 1 to 8 points in the ES. Most generally in the 2 to 4 point range. I do not see scalping as one or two ticks. I am familiar with Wyckoff’s and Tom Williams thinking but have never heard of Anna Coulling. Richard Arms deals with volume.
Thank you for introducing me to Richard Arms. I will add him to my to-read list.
Anna Coulling is, in my view, the popularizer of volume analysis. Her books are written in a simple way, so that even a beginner can understand. Her books were what got me into trading in the first place.
Totally understand , the book is very boring and hard to read. The videos are much better and easier to follow. Al explained his terminologies and short forms such as H2, MTR, etc in the first few videos. Without understanding those it would be very hard for you to get the points.
I read Anna's book too. I would say both approaches have values. I learnt a lot more from Brooks though. It is not about scalping a few points, you can have a higher target like catching a big intra day swing. Brooks taught you to understand the context such as whether the day is a trend day or trading range then you can be a trend follower or you can focus on reversal. I would admit it is quite hard to go through at first
he does not use indicators too.
he does briefly explain why he does not use indicators
in fact he does not fully explain his own concepts...such as entering a pb:H1/2 ....a H1/2 that occurs just after a consolidation...is suspect and usually does not go very far......this can be seen by studying historical charts very easily......if market is swing cleanly then this works like a dream.
he does not explain this or even point it out: Brooks throws you in the deep end and most sink.
whether price drives volume or volume drives price, chicken and egg situation....the fact remains is that volume does not determine profit.... only the value of price does....
there can be no doubt that volume leads the price.....but there is also no doubt that there is no way of knowing the exact amount of time in minutes that the volume leads.so you have to wait for an entry signal from price.......
and then that begs the question why bother with volume if you have to wait for an entry signal from price.
i have seen markets go up for 20-30% on very low volume........
IT is usual to believe that high volume is necessary to drive prices up when a sell vacuum can just as easily have the same effect.
if 75-85 % of the market participants do not sell what do you think will happen to price and what will the volume of transactions be?
price is the only reality and only price determines your profit
How much did you make from reading his book?
Absolutely correct. A trader can use Brooks ideas of reading the markets and trading them for larger intraday trends employing things he teaches like measured moves…the type of day price is panning out….etc. I have in particular keyed in on applying Brooks ideas in scalping as that is my preferred way of trading. I don’t like sitting there watching price for 2 or 3 hours waiting to get a larger intraday setup to appear. I see many more scalping in and out opportunities as they abound, and can very often compound the profit from a previous trade by using scalping techniques.
The truth is profit can be made on almost any of the 81 bars of a 5m time frame chart. Price may move ..then stall…but it is going to move again. Price is constantly probing. One can learn to scalp the probes. And I usually don’t need volume to do this. I have done it both ways, with and without volume on the chart, and just find that for my preferred way of trading that seeing volume bars is not essential to success.
If you are curious in seeing price and volume combined into a one glance chart then equivolume charting may catch your interest. It is an oldie written originally in 1971.