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Book Discussion: Reading Price Charts Bar by Bar by Al Brooks
I started reading "Reading Price Charts Bar by Bar" few months ago. After reading first 2 chapters I quit for a while. After reading a lot of good information on this forum, I have decided to start reading the book and plan on putting in serious effort into learning price action.
Thanks to many people for their contribution. It has helped me a lot.
Has anybody used this method to trade ES using 10 or 15 minute bar charts ? I understand that there will be fewer trades than on 5 minute bar charts. I will be interested in knowing about your experience using higher timeframe.
Thanks.
Can you help answer these questions from other members on NexusFi?
Not specific to the Brooks system but my trading has evolved to using 15 min or even 60 min charts in a simple MA cross system, combined with support and resistance areas. This keeps me -- more often -- on the right side of trend and also allows for riding some of the bigger moves, the ones you miss with more scalpy methods in the shorter time frames. And there's something very satisfying about sitting back and riding a trade for days once in a while. Every system has its downside of course and the downside of using a larger time frame to trade on is that you will take some larger stop losses than on a smaller frame. OTOH, you will take fewer of the 'death of a thousand cuts' losses that are possible in scalp mode.
pa works on any chart - whether on 10´ or 15´ or on 60´ and 480' it even works on daily, weekly and monthly charts. if you read al´s whole book you will find some annotation that it works on any timeframe.
you can even use tick or volume charts and it works.
What I'm struggling with is Brooks's stop placement, specifically when to move it.
I'm clear that you place your first protective stop under the signal bar.
When can you move it up to under the entry bar? As soon as the price goes above the entry bar? Or after a close above the entry bar? Or doesn't Brooks mention that?
And then when do you move it to break-even?
You can discover what your enemy fears most by observing the means he uses to frighten you.
One of the posters had made available Brooks Setups2.pdf. In that pdf one page mentions following about stops:
Initial stop = 1 tick beyond signal bar.
After entry bar closes, then 1 tick beyond entry bar.
After scalping 4 ticks, then breakeven.
Also use money management stop (about 2 pts).
When average daily range is huge, use 4 point stop and 2 pt target and trade half size.
OK, thanks. I keep forgetting I should go back to read those articles again now I've got a better level of understanding from wading through the first half of the book. I think everyone agrees his articles are much easier to digest.
You can discover what your enemy fears most by observing the means he uses to frighten you.
i personally trail my stop on one tick below the low or above the high of the last bar. you can also trail the high/low of the bar before the last bar. the stornger the move develops the faster you are break even....
Every system has its downside of course and the downside of using a larger time frame to trade on is that you will take some larger stop losses than on a smaller frame. 
