Trading Price Action: Trends and Reversals (Al Brooks)

Trader's Library #43 · Technical analysis. Detailed reading of an intraday index chart, bar by bar.

Author: Al Brooks · Original: Trading Price Action Trends; Trading Price Action Reversals · Year: 2012 · Usefulness for traders: ★★★★☆

What it's about

Two volumes from the trilogy by Al Brooks, a former ophthalmologist who has been day trading E-mini S&P 500 futures for years. Brooks analyses the five-minute chart bar by bar: trends, channels, trading ranges, reversals and traps.

What it gives a trader

Very close to what an MYM trader does: reading an intraday index chart. Brooks teaches you to think of every bar as a battle between bulls and bears and in terms of the probability of continuation or reversal. It takes enormous work, but it changes how you look at a chart.

Lessons for traders

• every bar is information about the strength of buyers and sellers
• most attempts to reverse a trend fail
• think in probabilities and reward-to-risk, not certainty

What to watch out for

A very difficult, long-winded style with its own terminology. Better to read it in parts and practise on the chart than to try to read it all at once.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #042 John J. Murphy: Technical Analysis of the Financial Markets · Library index · #044 Thomas Bulkowski: Chart Patterns and The Evolution of a Trader →

Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.