You know what got me interested in Price Action was actually seeing your old blog video regarding Price Action and the forum thread in this Elite Circle a few days ago... I immediately jumped onto the bandwagon and I now doubting the real value of each and every indicator I have used in the past, including the ones I have written myself! lol
So, it's clear I am a noob when it comes to Price Action so I will be asking some really dumb questions, however someone has to do it and hopefully others may learn from my stupidity or curiosity to understand better the foundations.
What could very well be improved in the book would be some clearer diagrams or the use of them, there's a complete lack of them! And for a book where everything is Bar Formation in respect to location and previous bars, I'd say it's pretty important to be able to show what one is trying to explain.
For instance where a diagram of two could have been nice, pass all the introductory waffle (where Al made many valid observations with why Price Action is the only way to trade) he begins a section called Bar Counting Basics: High1, High2, Low1, Low2 (just before Part1, Price Action).
I felt that if he was going to explain something basic, why did it sound so complicated???
"A reliable sign that a pullback in a bull trend or in a trading range has ended is when the current bar's high extends at least one tick above the high of the prior bar. This leads to a useful concept of counting the number of times that this occurs, which is called bar counting. In a sideways or downward move in a bull trend or a trading range, the first bar whose high is above the high of the prior bar is a high1, and this ends the first leg of the sideways or down move, although this leg may become a small leg in a larger pullback. If the market does not turn into a bull swing and instead continues sideways or down, label the next occurance of a bar with a high above the high of the prior bar as a high2, ending the second leg.
A high2 in a bull trend and a low2 in a bear trend are often referred to as ABC corrections where the first leg is the A, the change in direction that forms the high1 or low1 entry is the B, and the final leg of the pullback is the C. The breakout from the C is a high2 entry bar in a bull ABC correction and a low2 entry bar in a bear ABC correction.
If the bull pullback ends after a third leg, the buy setup is a high3 and is usually a type of wedge bull flag. When a bear fally ends in a third leg, it is a low3 sell setup and usually a wedge bear flag.
Some bull pullbacks can grow further and form a high4. When a high4 forms, it sometimes begins with a high2 and this high2 fails to go very far. It is instead followed by another two legs down and a second high2, and the entire move is simply a high2 in a higher time frame. At other times, the high4 is a small spike and channel bear trend where the first of second push down is a bear spike and the next pushes down are in a bear channel..... etc..."
Now, I was reading that last night, and I'm now left more confused even after reading that 3 times.... maybe it's my brain telling me I am stupid....????? But it does seem like a long winded explanation for something that could have taken many less words?
Anyone understand exactly what he is saying and can put it in a diagram?
Last edited by traderdavidt; December 15th, 2011 at 06:18 PM.
As I think some of the basic concepts were covered there.
Also you might check the two Al Brooks webinars in the webinar section of futures.io (formerly BMT), as I think his visual presentations are more clear than the books.
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Thank you, appreciated, I am a new member so I've not found all the nice goodies yet of this forum. Also, I missed that thread in my search on Price Action. I will try to be more thorough in future searches.
I'll check these out and continue reading and learning.
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Does anyone got the book as kindle version? I would like to read it at my computer with "kindle for mac" software (I have no iPad - so the iBooks option is not for me).
However I have had some bad experiences with illustrations in kindle ebooks being very small, and not zoomable.
For ex. I own Scott Carney´s "Harmonic Trader" and the charts are very small. If you take a look at the physical book, the charts fill the whole page. So there the kindle version really is a waste of money.
So my question is, has anybody the kindle version of "Trading price Action Trends", and how good or bad are the chart images viewable at the computer?
I have the kindle version and have removed the DRM (I bought the electronic kindle version, but I don't have a kindle! I just wanted the book real bad and quickly!) and have converted it even to epub format for my iPad so that I can load it into iBooks.
The pictures are good, I can see everything, however Al Brooks mentioned that he has released all of his diagrams that he uses in his book onto his website and they are larger and more clearer. So this allows you to have the book in one hand and a zoomable diagram on the other.
You MUST own the book to be able to remove the DRM, from then, you can convert it into any format you wish. You can find the procedure on youtube, just search for it as I don't want to write the whole procedure down here!
If you have any problems though, just PM me and I'll help you with it.
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The three new books will replace the old one. All the material in the bar by bar book has been expanded and the emphasis is more on actually trading the setups. The new ones are really three separately bound volumes of one big book: think Lord of the Rings.
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