NexusFi: Find Your Edge


Home Menu

 





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


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one cunparis with 84 posts (158 thanks)
    2. looks_two Blz17 with 46 posts (131 thanks)
    3. looks_3 Big Mike with 34 posts (61 thanks)
    4. looks_4 ZTR with 18 posts (3 thanks)
      Best Posters
    1. looks_one cbratton with 7 thanks per post
    2. looks_two Blz17 with 2.8 thanks per post
    3. looks_3 cunparis with 1.9 thanks per post
    4. looks_4 Big Mike with 1.8 thanks per post
    1. trending_up 359,126 views
    2. thumb_up 843 thanks given
    3. group 163 followers
    1. forum 549 posts
    2. attach_file 120 attachments




 
 

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

 
roger77
USA
 
Posts: 4 since Jan 2011
Thanks Given: 4
Thanks Received: 1

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?
Futures True Range Report
The Elite Circle
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
NexusFi Journal Challenge - April 2024
Feedback and Announcements
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
36 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
 
 
heywally's Avatar
 heywally 
Pismo Beach CA
 
Experience: Intermediate
Platform: TOS, IB, Fidelity for 'swing' trades
Trading: ES, NQ, IBB, IWM, NG
Posts: 159 since Apr 2010
Thanks Given: 80
Thanks Received: 90


roger77 View Post
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.

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.

"The Future Ain't what it used to be"
Thanked by:
 
 
Jones's Avatar
 Jones 
Stuttgart, Germany
 
Experience: Advanced
Platform: Ninja Trader
Broker: IB TWS / Kinetick
Trading: ES
Posts: 32 since May 2011
Thanks Given: 17
Thanks Received: 13


hi roger77,

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.

cheers
jones

 
 
Adamus's Avatar
 Adamus 
London, UK
 
Experience: Beginner
Platform: NinjaTrader, home-grown Java
Broker: IB/IQFeed
Trading: EUR/USD
Posts: 1,085 since Dec 2010
Thanks Given: 471
Thanks Received: 789

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.
Follow me on Twitter Visit my NexusFi Trade Journal
 
 jmjstrider 
Hickory, North Carolina, USA
 
Experience: Intermediate
Platform: Ninjatrader 7
Broker: Velocity/TT
Trading: YM/ES/6E
Posts: 97 since Dec 2010
Thanks Given: 19
Thanks Received: 45


Adamus View Post
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?

I am not an authority, but I believe it is when the entry bar closes.

And then when do you move it to break-even?

I think it is when first profit target is reached.

Thanked by:
 
roger77
USA
 
Posts: 4 since Jan 2011
Thanks Given: 4
Thanks Received: 1


Adamus View Post
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?

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.

Thanked by:
 
 
Adamus's Avatar
 Adamus 
London, UK
 
Experience: Beginner
Platform: NinjaTrader, home-grown Java
Broker: IB/IQFeed
Trading: EUR/USD
Posts: 1,085 since Dec 2010
Thanks Given: 471
Thanks Received: 789

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.
Follow me on Twitter Visit my NexusFi Trade Journal
 
 
Jones's Avatar
 Jones 
Stuttgart, Germany
 
Experience: Advanced
Platform: Ninja Trader
Broker: IB TWS / Kinetick
Trading: ES
Posts: 32 since May 2011
Thanks Given: 17
Thanks Received: 13


Adamus View Post
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?

hi adamus,

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....

cheers
jones

Thanked by:
 
 
Adamus's Avatar
 Adamus 
London, UK
 
Experience: Beginner
Platform: NinjaTrader, home-grown Java
Broker: IB/IQFeed
Trading: EUR/USD
Posts: 1,085 since Dec 2010
Thanks Given: 471
Thanks Received: 789


jmjstrider View Post
I think it is when first profit target is reached.


roger77 View Post
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.


Jones View Post
hi adamus,

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....

cheers
jones

Do any of you guys trade the EUR/USD?

I get the feeling I need to adapt Brooks's exit strategy to fit better in forex compared to the Emini.

You can discover what your enemy fears most by observing the means he uses to frighten you.
Follow me on Twitter Visit my NexusFi Trade Journal
 
 
Jones's Avatar
 Jones 
Stuttgart, Germany
 
Experience: Advanced
Platform: Ninja Trader
Broker: IB TWS / Kinetick
Trading: ES
Posts: 32 since May 2011
Thanks Given: 17
Thanks Received: 13



Adamus View Post
Do any of you guys trade the EUR/USD?

I get the feeling I need to adapt Brooks's exit strategy to fit better in forex compared to the Emini.

No, not at the moment.


 



Last Updated on September 4, 2020


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts