Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Book Discussion: Reading Price Charts Bar by Bar by Al Brooks
When The Student Is Ready The Teacher Will Appear!
I had a feelling when I first read this thread that you guys were on to something that I ahve been looking for - a simplified approach to chart reading. So after reading the thread watching Al's webinars and attempting to follow his reasoning I thought I would give it a go in the simulator in TOS. Admitedly my grasp of his concepts are still crude at best and I did second guess my self a lot as to H1 H2 L1 L2 but the first trial was a qualified success. I set up my charts for 5 min 20 EMA plus volume only and decided to just trade AAPL for the day. Net result 6W 3L batting ave 67% I took $1.74 out of AAPL over the 9 trades. My trading plan targets $1 per day with my max risk per trade increasing incrementally after each profitable day. so chalk 1 up for the Brooks method. I will continue to trade Sim until comfortable with the methodology - but at first blush this definitely has legs!
You are right. Let me explain my reasoning for the descripency. For entry, SMA and EMA are pretty much identical in the way Al descripes the setup I was wondering about.
The reason for SMA: Allowing for larger, but better defined risk is one of my goals. Felt that with a strong move the SMA gives more time to allow a trade to develop. For the attached chart of a strong move the yellow SMA is slower to respond, than the purple EMA. Meeting my goal of a slower, but longer lasting trailing exit.
After reading BDRPPLIR's post I am inspired to reread the Best Trades chapter over and over until I get it and make trades based on a few simple setups.
But, its a very hard read.Ive had it for a few weeks now and i'm just learning Als concepts.I also find myself going back and re reading sevral chapters.
Saroj tahnks for the tip on the ebook I bought it online as I am on holiday for 2 months in Mexico away from home and therfore could not get the book delivered.
So for absolute GP multiply the cents by your typical position size.
Now each day I read another section of the book and reread the posts in this forum. Each time something extra clicks. Today it was his use of trendlines and pullbacks to and from the TL's.
Also I have become a little more patient waiting for a setup.
I truly hope this thread does not die out because it has to be one of the most important forum discussions that I have ever had the priviledge to be involved with. Thank you to all who have contributed so far. And please keep the thread going - price action is only holy grail we are going to find in trading.
Hi thanks for sharing your success. I'm not currently trading the brooks setups although I do notice an H2/L2 many times. So it's up to you guys to keep the thread going. Please post some charts with your AAPL trades I'm sure we'd all love to see them.
Cunparis I would love to know why you no longer trade the brooks set ups (if you are prepared to share of course) because it was your enthusiam and drive that got this thread off to such a great start in the beginning. Do his setups no longer work for you?
