Futures I Trade Show & Brooks Book

[rigel 10]

Yes lot of confirmation of setups take place in hindsight on the charts and it would be extremely difficult for many to latch onto this in realtime.

Despite the fact the emphasis is on 5min charts there is also mention of daily charts 60min timeframe, volume on 1min etc. so obviously Al is looking at more charts than just the 5min.

 

Anyway Al has been observing and trading these setups over 20yrs hence becomes a second nature to him,

 

IMO if you take the trouble to understand price action via both price and vol, it would make life that much easier.

Also if you thoroughly review and understand the fundamental concepts of his methodology outlined in his article "Trading Breakouts and MicroTrend lines" where he states and elaborates "Two of the most reliable entries are failed breakouts and breakout pullbacks " and then go and study the material in the book or on the EOD charts or on realtime charts, you will find that that is at the heart of all the other setups .

The other major one is TraderVic 123 reversal setups.http://www.trading-naked.com/123-reversal.htm, however these also without due consideration to vol whether climatic or not and ensuing supply/demand balance in the sidesways or flag pattern breaking the trendline would lead to many failed trades.

Edited September 28, 2009 by rigel

[rigel 10]

Looks like there is going to be a subscription based Audio service.

[daedalus 10]

Hey gents... been a huge fan of al's work for awhile. Just bought the book yesterday so its still in the mail, but based off the I-Trade Show webinar and this thread i've started mock trading this method just looking for basic H2/L2 patterns around the EMA's.

 

This was today's trade thus far (the only one i've had):

 

What I liked:

• - Strong Downtrend
  
• - Clearly defined L1
  
• - Pivot Low visible
  
• - Relatively Low Risk entry candle.
  

 

What I didn't like:

• - Price trading above 21ema.
  

 

 

How I manage all the entries, are using a quick fib retracement of the entry candle. 200% represents a 1:1 move, get to par, 300% represents my 2:1 target profit level.

 

Cheers!

[daedalus 10]

As an extension of my last post....

 

Todays EOD thoughts...

 

Entries were spotted in real time... again, all i'm focusing on is H2/L2 entries either as trend pullbacks near the EMA or at prior Support/Resistance. Par at 200%, Take Profit at 300% extensions of entry candle.

 

 

Comments? Thoughts? Suggestions? Am I off my rocker?

 

I just figure, rather than trying to exploit every wiggle and jiggle in the market i'd just stick to the basics of one kind of setup (L2/H2) at the simple points of the market.

[mikea59 10]

 

I just figure, rather than trying to exploit every wiggle and jiggle in the market i'd just stick to the basics of one kind of setup (L2/H2) at the simple points of the market.

 

Your identification of L2's and H2's doesn't seem consistent to me. The L2 at about 9:35 for example - shouldn't the next bar be the L2 (a lower low)? Your L2 was indeed a pullback towards the EMA, but certainly did not close below the low of the prior bar.

 

The last L2 of the day around 14:00 is another example. It looks like it's L is the same as the prior bar, so I guess it's close to a lower low, but technically not a LL. That 14:00 bar still looked like a good short because of the prior resistance, but you can't say it's an L2, can you?

 

It looks to me like your L1/H1's are LL/HH's, but your L2/H2's are pointing to the bar BEFORE what I would call an L2/H2.

 

Anyway, you seem to have a decent grasp of at least one of Al's methods, where I am still struggling.

[daedalus 10]

Your identification of L2's and H2's doesn't seem consistent to me. The L2 at about 9:35 for example - shouldn't the next bar be the L2 (a lower low)? Your L2 was indeed a pullback towards the EMA, but certainly did not close below the low of the prior bar.

 

The last L2 of the day around 14:00 is another example. It looks like it's L is the same as the prior bar, so I guess it's close to a lower low, but technically not a LL. That 14:00 bar still looked like a good short because of the prior resistance, but you can't say it's an L2, can you?

 

It looks to me like your L1/H1's are LL/HH's, but your L2/H2's are pointing to the bar BEFORE what I would call an L2/H2.

 

Anyway, you seem to have a decent grasp of at least one of Al's methods, where I am still struggling.

 

See well thats where I disagree with a lot of the analysis thats been posted in here... A valid H2/L2 in my can't happen UNTIL A NEW HIGH OR LOW IS MADE... Isn't the entire idea of al's H2/L2 to catch the second wave of a move - that the second wave of the pullback is the wave that is the real move. Thus, in the first trade, when it made an L1, yes there was a second bar that made a lower low, but until price goes back up and puts in a new high i'm not going to start putting in sell stop orders to get short.

 

Is that how everyone else is interpreting this?

 

 

 

And I just wanted to repost this image - the first time I left out the second trade results...

 

[R.P.G. 10]

I just wanted to share and see if anyone had any more free webinar vids other than the two?

 

So I wanted to read Al's articles from the beginning so I scanned all 64 pages of posts for all PDF's of the articles. I downloaded them and a while later I went to the Futures website to see if there free articles by him were in full or just a sample.......And as it turns out the full articles are given. It is a different format, but all the words are there and the charts are there too, with a printable version in the top bar.

 

So this is every Futures magazine article Al Brooks has written from beginning to current.

 

Author - Futures Magazine

 

Here are the two webinars(Top Post)

http://www.traderslaboratory.com/forums/104/futures-i-trade-show-brooks-book-6008-2.html

 

CFRN Interview

http://heavensembrace.org/media/albrooks050908.mp3

 

And here is the support forum for Al Brooks

Brooks Price Action - Home

 

Please if anyone has anything else by Al Brooks I would greatly appreciate you share it.

[ACS 10]

The last 2 presentations, how to trade wedges and how to trade the open are now on view at the I-Trade show. It would be great if someone who has the ability to tape those could do so and share them. Thanks!

[zdo 20]

Speaking of Al Brooks - does anyone have code or logic for his 'tiny trendline break' setup? That may not even be the correct name for it btw - I loaned my book to someone by mail and only remember seeing it in there. Many thanks.

[R.P.G. 10]

Speaking of Al Brooks - does anyone have code or logic for his 'tiny trendline break' setup? That may not even be the correct name for it btw - I loaned my book to someone by mail and only remember seeing it in there. Many thanks.

 

I can't register to it, it says register is closed. I wonder why it says that.

[wangdd 10]

i come from china,and spend 2 weeks to read this book.As You can see i speak poor english,reading it is very hard to me.

 

come here to learn some more good insights,i'll try my best in trading:)

[Goldfish 10]

I'm new to this conversation, but have been digesting Al's book ever since I got my copy last month. I found this thread as I was searching the web for additional info to help clarify and assist with the book.

I've been trading with marginal success for several years now, but have recently jumped into the deep end of the pool by immersing myself in Wyckoff, Taylor & most recently, Brooks. Tossing out all my indicators was the best move I ever made for my bottom line.

I have to jump in and give a huge thanks to all the hard work everyone has contributed in this thread. I've found it invaluable and think it will really help me as I work my way through Al's book.

 

I second those comments ...and what really is an achievement on this forum - is that rarely is there any disagreement between those who post about Al Brooks' work....just straight discussion & charts posted for comments/help etc.

 

If you do a search on other forums, ( I dont want to name them) the nasty comments hack back and forth for literally hundreds of posts, with members trying to out-snipe one another. Here, its just straight learning - remarkable and a pleasure to read.

 

So thanks to all who contribute so much.

[Goldfish 10]

You've come to the best place Wangdd - a great site to learn from.

[anituchka 10]

Hello everyone, I have just finished reading Al Brooks’ new books.

 

I have a couple of questions about H1,H2 in a bull trend.

 

Image 1

 

1. Can a red bar be a signal bar in a bull trend? For example, is B47 a signal bar for a long entry?

2. Regardless of the color, if the entry is not triggered on the next bar, how many bars can we wait for? For example, if bar 47 is a signal bar, does entry bar have to be the next bar or can we wait for a couple of bars, in this case, entry would be bar 49.

 

Image 2

1. Can bar 45 be considered a signal bar? It formed a double-double bottom with bars 42, 43 and 44.

2. Can bar 50 be considered a signal bar? Double bottom with bar 49?

3. If the answer is no, is there a H2 on this chart at all?

[Patuca 13]

Hello everyone, I have just finished reading Al Brooks’ new books.

 

I have a couple of questions about H1,H2 in a bull trend.

 

Image 1

 

1. Can a red bar be a signal bar in a bull trend? For example, is B47 a signal bar for a long entry?

2. Regardless of the color, if the entry is not triggered on the next bar, how many bars can we wait for? For example, if bar 47 is a signal bar, does entry bar have to be the next bar or can we wait for a couple of bars, in this case, entry would be bar 49.

 

Image 2

1. Can bar 45 be considered a signal bar? It formed a double-double bottom with bars 42, 43 and 44.

2. Can bar 50 be considered a signal bar? Double bottom with bar 49?

3. If the answer is no, is there a H2 on this chart at all?

 

Image 1 Bar 47 is not a signal bar. Remember a signal bar is the bar talking you into trade. If it makes the setup and you take a position then it becomes the entry bar. Bar 47 qualifies for neither. It would not have been talking me into taking a position, Bar 49 is an H1 and is first a signal bar as it approaches going higher than bar 48..i.e. it begins to talk me into the trade. Then it becomes an entry bar when it goes 1 tick past bar 48 and I get long. While this too is near the moving average it is a bit more risky but since then trend is fairly strong I would take the risk and take a position on bar 49. A second opportunity is bar 50.

 

Image 2 Bar 45 is a signal bar that becomes a H2 entry bar once it went 1 tick past bar 44. Bar 43 is an H1. Bar 44 is the second leg of the pullback. Hope that helps.

 

Image 2 - Bar 50 would only be a signal bar if it was approaching going above bar 49 which it didn't. Bar 51 is an H1, Bar 53 would be a signal bar H2 and a better entry off the moving average. Bar 55 would actually be the another entry bar (an H3) off near the moving average. Safer trades off moving average is H2 and the H3. Riskier trade would have been long on bar 51 (H1).

 

Remember all bars are either trend bars or range bars in Al's scheme of things. Doji's are trading range bars. Any bar with a goodsize body is a trend bar. Now about colors. If you are looking to go long it would be less risky to stick with signal bars that are the same color as the trend you are trying to capture. For instance, in image 1 bar 47 is a red trend bar. It also never approached breaking the high of the previous bar. So it is not a good signal bar. Bar 49 is the right color bar and it talks me into the trade especially when it breaks the high of bar 48.

 

Please see picture attached for a more detailed brooks explanation of your questions. Just kidding!

Edited October 9, 2012 by Patuca

[Patuca 13]

could you please tell me what anituchka means?

[crakeshm 10]

.

While this too is near the moving average it is a bit more risky but since then trend is fairly strong I would take the risk and take a position on bar 49. A second opportunity is bar 50.

 

Hi Patuca,

 

How do we take into account the MA wrt the candle formed in Al's scheme. How far is far enough and how close is risky?

 

Thanks

[zdo 20]

Hi Patuca,

 

How do we take into account the MA wrt the candle formed in Al's scheme. How far is far enough and how close is risky?

 

Thanks

 

crakeshm,

Looks like patuca has stepped out to lunch

(forever? Hope not)

- so I will take a very general swipe at it.

 

Brooks and those successfully applying his methods are applying unmentioned ‘rules’ in their utilization of the ma.

Brooks uses the MA as a central tendency to ‘ground’ the wet ware.

But - to be blunt - instead of trying to develop or stick to ‘mono-rules’, the ‘meaning’ on these approaches to ma's must be taken statistically... even noobs should be attempting this from the beginning!

Because ... similar/analog (or exact) price pattern approaches to the central tendency will not have exact (or similar/analog) results or ‘meanings’.

 

It takes some time observing and using a central tendency to ‘ground’ the wet ware before you develop reliable, multiple ways to project probable outcomes... instead of relying on ‘mono-rules’ ...

 

Another way of expressing this - at a system (or method) level, trading rules and simple moving averages don’t mix. Statistically, it’s a fkn wash at best. This backtest to nowhere prematurely ends the careers of many otherwise bright traders (... sometimes it’s best to believe those who have gone before you... but if you must - find out for yourself... )

 

(almost )

... Also, for what it’s worth, standard ma’s need to be displaced ( .5 the length of the ma) bars back and a projected regression used to fill in the missing gap / to catch it up to current bar.

 

(more almost )

...Another technique for increasing ma’s efficacy is to start them again after each significant pivot instead of dragging a bunch of unuseful data into the calculation. For a while, displaced 2 period ma’s were popular because they were, in effect, accomplishing something closer to starting the ma again after each significant pivot... unbeknownst to most using them...

 

Many wet wares do not find them necessary at all (... some of those peeps will even preach that YOU should never dare even glance at them ... not realizing they are (unconsciously) ’calculating’/projecting at least one (if not more) central tendency in their head all the damp time  )

 

As your screen time accumulates, don’t be surprised if you may wake up one morning or midsession suddenly holding ma’s in a negative light and drop them... btw, if that happens, it’s better not to ‘judge’ them. Simply realize your wetware no longer needs them visually represented on your charts because they are interfering with your more accurate and preferable ‘non math’ wetware calculations and 'contexting' that will allow you to do better than .6 with working out “ How far is far enough and how close is risky”. etc. etc ...

 

But also don’t be surprised if after significant screen time with them, they suddenly fall into place for you... and become really useful...

 

And ... If you’re one of those who dropped them or never found them useful. also don’t be surprised if one day you wake up needing and attempting to manually draw your wetware version of a central tendency back on your charts...

 

ie “Find your own way” !!!!!!!!!! zdo

 

 

hth

 

 

zdo

Edited March 14, 2016 by zdo

[crakeshm 10]

crakeshm,

Looks like patuca has stepped out to lunch

(forever? Hope not)

- so I will take a very general swipe at it.

 

Brooks and those successfully applying his methods are applying unmentioned ‘rules’ in their utilization of the ma.

Brooks uses the MA as a central tendency to ‘ground’ the wet ware.

But - to be blunt - instead of trying to develop or stick to ‘mono-rules’, the ‘meaning’ on these approaches to ma's must be taken statistically... even noobs should be attempting this from the beginning!

Because ... similar/analog (or exact) price pattern approaches to the central tendency will not have exact (or similar/analog) results or ‘meanings’.

 

It takes some time observing and using a central tendency to ‘ground’ the wet ware before you develop reliable, multiple ways to project probable outcomes... instead of relying on ‘mono-rules’ ...

 

Another way of expressing this - at a system (or method) level, trading rules and simple moving averages don’t mix. Statistically, it’s a fkn wash at best. This backtest to nowhere prematurely ends the careers of many otherwise bright traders (... sometimes it’s best to believe those who have gone before you... but if you must - find out for yourself... )

 

(almost )

... Also, for what it’s worth, standard ma’s need to be displaced ( .5 the length of the ma) bars back and a projected regression used to fill in the missing gap / to catch it up to current bar.

 

(more almost )

...Another technique for increasing ma’s efficacy is to start them again after each significant pivot instead of dragging a bunch of unuseful data into the calculation. For a while, displaced 2 period ma’s were popular because they were, in effect, accomplishing something closer to starting the ma again after each significant pivot... unbeknownst to most using them...

 

Many wet wares do not find them necessary at all (... some of those peeps will even preach that YOU should never dare even glance at them ... not realizing they are (unconsciously) ’calculating’/projecting at least one (if not more) central tendency in their head all the damp time  )

 

As your screen time accumulates, don’t be surprised if you may wake up one morning or midsession suddenly holding ma’s in a negative light and drop them... btw, if that happens, it’s better not to ‘judge’ them. Simply realize your wetware no longer needs them visually represented on your charts because they are interfering with your more accurate and preferable ‘non math’ wetware calculations and 'contexting' that will allow you to do better than .6 with working out “ How far is far enough and how close is risky”. etc. etc ...

 

But also don’t be surprised if after significant screen time with them, they suddenly fall into place for you... and become really useful...

 

And ... If you’re one of those who dropped them or never found them useful. also don’t be surprised if one day you wake up needing and attempting to manually draw your wetware version of a central tendency back on your charts...

 

ie “Find your own way” !!!!!!!!!! zdo

 

 

hth

 

 

zdo

 

Thanks a lot ZDO for such an elaborate explanation. I agree with what you said. I will try to experiment with the MA techniques you have mentioned.