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Book Discussion: Reading Price Charts Bar by Bar by Al Brooks
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Book Discussion: Reading Price Charts Bar by Bar by Al Brooks

  #111 (permalink)
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BLZ,

Brooks made a couple points in one of his online webinars.

1. The 5 min chart is the sweet spot. A manageable number of setups (10-15) and 2-5 great setups /day.

2. 5 min. charts are a lot less stressful, he can't process any shorter time frame, it's too
much information.

3. 3 min. charts have about 25 trades/day but that is too many. You will likely cherry pick and pick too many bad cherries.

4. The 1 minute chart has about 40 signals.

These are exact quotes from Al Brooks.

GarryM

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  #112 (permalink)
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BLZ,

I also appreciate you taking the time to post your charts.

Some other points from Brooks: (taken directly from Al's webinar)

1. "Be very selective, even if you only take 1 or 2 trades/day. If you are really
in this for the money, you must learn to be patient."

2. "Until you are consistently profitable work on increasing position size rather than
taking more entries."

3. "No indicators, you don't need them, they slow you down, it's too much to analyze."

4. "A doji is a 1 bar trading range. Never look to buy above a trading range in a bear phase, so never look to buy above a doji in a bear."

5. "Enter on a stop at one tick beyond the signal bar. You want to be swept into the trade by the market going your way."

6. "Always use a money management stop (about 2 points). When average daily range is huge, use a 4 point stop and a 2 point target and trade half size. If these large ranges make you feel afraid, trade just 100 SPY."

7. "If you pick your entries well, your break even stop will not get hit and you can make a lot of money off the swing portion of your position, but only if you are patient."

8. "H2s are the safest for beginners to buy."

9. "One goal is to look for a 2-legged pullback in a down trend. Look to short L2 at the 20 EMA."

10. " The counts are not absolute. Don't lose sight of the goal, you are looking to enter with trend on 2-legged pullbacks."

11. "Breakouts against a trend usually fail, so place a sell order 1 tick below the low of the signal bar."

12. "If the leg runs too far, begin the count again on the first pullback from a momentum surge. Remember, you are looking for the end of a 2-legged pullback after a strong down move."

13. "A failed H2 is a short because the market failed at 2 attempts to rally."

14. "Always short a failed H2 in a bull."

15. "Until you are consistently profitable, only take 2 types of trades. #1 TREND ENTRIES-Look to buy a H2 near the EMA in a bull or sell a L2 near the EMA in a bear.
#2 REVERSAL ENTRIES-pullbackafter a trend line break. I can't stress this enough,
don't trade reversals until there is first a break of the trend line, then wait for the test of the low."

16. "With trend entries always look bad. It is hard to be selling at the low of the day all day. The market always looks like it has gone too far and is ready for a reversal. But every reversal is just a with trend setup."

These were all comments of Al's, I hope the fact that I took meticulous notes and posted them here doesn't get me into trouble, my intention is not for gain but sharing his thoughts.

GarryM

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As Mike said to me earlier I say the same to you, I wish I could hit the Thank You button twice. Some of that stuff I had already got from the book some of it I either had not gotten to or had already forgotten. Consistently reading Brook's material whether it's here or in his book only helps to hammer home the information. So, again thank you for posting that material.

Blz

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  #114 (permalink)
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Thanks Garry. Do you find his webinars to be much better than the book?

Mike

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Do you find his webinars to be much better than the book?

1000 times YES. While the book doesn't appear to be edited in any serious fashion (shame on the publisher), his Futures Mag articles and webinars are much clearer. In fact, I would not recommend anyone try to read this book until you've watched the webinars. At least that way, you have some sort of context for what you are reading.

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  #116 (permalink)
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Mike,

Al's concepts are much easier to understand in the webinars compared to his book.

When you listen to his webinars it just makes sense. It seems to me that the book
is a mixed jumbled explanation of all of his concepts repeated over and over again.

This is not intended to insult Al but I feel that Al's verbal communication is superior to his written communication.

For those of you studying Al's methods, listening to the December webinar should clear up some things. Especially if they are the caliber of his previous webinars.

GarryM

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GarryM View Post
Mike,

Al's concepts are much easier to understand in the webinars compared to his book.

When you listen to his webinars it just makes sense. It seems to me that the book
is a mixed jumbled explanation of all of his concepts repeated over and over again.

This is not intended to insult Al but I feel that Al's verbal communication is superior to his written communication.

For those of you studying Al's methods, listening to the December webinar should clear up some things. Especially if they are the caliber of his previous webinars.

GarryM

I'm already signed up for the December webinar. Does anyone know if his prior webinars can be watched on replay anywhere?

Blz

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  #118 (permalink)
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here are his videos you need to unzip it back into avi files first, click on Al Brooks folder, also note that when I clicked on the LBR folder it said virus so do not click on the LBR folder.
Free File Hosting Made Simple - MediaFire

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Perhaps someone can help me out if you're willing to open up the book for my post.

My question is about Page 78, figure 3.2 -- bar #6. On page 79, he says that bar 6 is a Low 2. He goes on in the next paragraph to say bar 6 entry bar is a strong bear trend bar.

First, I want to confirm that bar 6 is the signal/trigger bar (white candle), and that the entry was actually at bar 6+1 (black candle) at one tick below the bar 6 low. In other words, your fill came in the middle of the downward push of the black candle bar. Is this right?

Second, what makes bar 6 a low 2? I'm just not seeing it.

Mike

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Need help?
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  #120 (permalink)
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"Bar 6 entry bar was a strong bear trend bar" signal is when a candle break the trend line.

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