Futures I Trade Show & Brooks Book

[BlowFish 10]

Attached: Trader Vic 123 setups

 

Al Brooks- much better representation in that he incorporates the concept of 2 legged move plus wedge formation to time the entry.

 

BTW in a fast market especially during the opening hours when you see large range breakouts, he does recommend going down to 3min or even 1min to gain entry. p156

 

It is worth adding that he only uses these to get positioned in the direction of the trend when the trend is strong (like Monad says near the open or strong break out) and a 5min L1 H1 correction looks unlikely. He strongly cautions against using these time frames generally ....I am not sure about hat particular advice yet *cough*

[monad 10]

Yes the second statement regarding 1min and 3min was not connected with the 123 or ABC setup which occurs after a strong trendline break.

 

It is meant to be used on initial strong breakouts to gain entry as it happened this morning on the FTSE and Dax.

Refer to P156 of his book.

 

Also if you go through that chapter 6 on Breakouts, you will find use of Wyckoff term Selling Power(pressure) on p162. this reflects that Al has obviously studied and understood price/vol relationships, though he has reached a stage where he can trade without having them on the chart.

 

But taking into account that it is utlimately price/volume (effort v/s result) interactions that materialise as patterns, it does help to have some understanding of P/V principles. The breakout setup on p160 for example is a manifestation of absorption. i.e supply from previous high being mopped up by buyers just prior to breakout of the range.

Edited June 10, 2009 by monad

[BlowFish 10]

This AM DAX a break out and pullback (not sure if AB would classify it as such) then a 2 legged correction to the BO point at the first arrow. There was then a second micro correction (WBW) and narrowing to the final BO.

 

I entered first arrow and was getting impatient so was gone at the previous high <doh> bad . Didn't p*ss around in the mornings range good

[forrestang 10]

Any other takes or observations on the day from others?

[ACS 10]

Any other takes or observations on the day from others?

 

Late selloff yesterday broke bull trend. Today's open was test of extreme. Market sold off in a big two legged pattern to today's low which I agree was also a test of extreme after breaking morning bear trendline. Lots of barb wire between the 936 low and the market finally breaking below it 2 hours later. I didn't spot any really good beginner trades but did note the micro trend channel overshoot you marked L2 that triggered at 932.25 and went for 4+ points. There were several other trend trades but the signal bar was the wrong color or there was barb wire. The reversal bar at the day's low was a second entry but there was a lot of overlap with prior bars. Market needs to blast out of this range.

[thetatrader1520887476 10]

Nice trading day I have been trading Al's patterns on a demo account for about a week. (first 90mins of trading day). Today was a big gap day and I know that the market trends most of the time after a big gap. so I shorted the low of the first bar (it was a trend bar not a doji) and added to the position at the low 1 and was done for the day. with nice profit. Al says in the book that it is okay to take High 1's and low 1's if the market is in a strong trend witch is was all morning.

I am almost done with his book and when I finish I will start from page 1 and go over it in much more detail. Hopefully then I will be able to contribute more.

[roger304 10]

Hey Guys, Here is a powerpoint presentation by Al last may at the I show. The charts are very clear and you can print them off. I think this is his first one.

Let me know how you like this one.

Roger

revbrooks_powerpoint_presentation1.pdf

[Zan-shin 10]

Hey Guys, Here is a powerpoint presentation by Al last may at the I show. The charts are very clear and you can print them off. I think this is his first one.

Let me know how you like this one.

Roger

 

Thanks Roger. I am finding his H1 and L1 definitions a little confusing. On slide 8 of the presentation he states that H1 = 1st bar in a DOWN or sideways market but in his book he defines H1 as occurring in an UP or sideways market. On p120 of his book, fig 4.16, he has H's and L's both annotated in an uptrend and H1 to H4 in a down trend.

[Gabe2004 10]

This is my attempt at marking H/L 1/2's.

Feel free to point out mistakes.

[thetatrader1520887476 10]

zan-shin

Right from the book: High 1,2,3,4 A High 1 is a bar with a high above the prior bar in a correction in a up or sideways market. If there is then a bar with a lower high (it can occur one or several bars later), the next bar in this correction whose high is above the prior bar is a high 2. the third and fourth occurrences are a H3 and H4 there are other variations as well.

I think there is a lot of gray area in the labeling of these. My take is if the market is moving down or sideways you keep labeling the highs above the prior bar in order 1,2,3,4, ect. and if the market is going up it would be H1 and H2 and the H2 is just the first pull back in the new up.

I am fairly new to Al's stuff and terminology so I could be corrected.

 

Al's also say don't get cought up in names like shooting stars and high moon dragons and things like that because they offer no trading value.

[roger304 10]

Hey Guys, Here is a powerpoint presentation by Al last may at the I show. The charts are very clear and you can print them off. I think this is his first one.

Let me know how you like this one.

Roger

 

As a side note on this. He did have audio with this like the current I- show but I didn't have any way to record other than a little microcassette recorder. It would be nice if I-show could post that presentation upon request now so you guys that recorded the others in MOV could get the sound too for it.

Edited June 11, 2009 by roger304

[YMoca 10]

Hi,

 

Just found this thread and am in the process of reading Al's book and learning his setups.

 

The book is definitely a tough read :bang head:

 

Here's a few other articles I found by Al written for Futures Mag.

 

Cheers

.

Breakouts and Micro Trendlines.pdf

Failed Flags.pdf

Price Action Fundamentals.pdf

Price action lines.pdf

Reversals.pdf

[Zan-shin 10]

The book is definitely a tough read

I am finding it a tough read too. Been trading for over 10 years and definitely in the "serious" category but this book is going to take a while to digest.

[pmxgs0 10]

Just got my copy, the charts are not that bad, definitely require a magnifying glass though, guess Wiley&Co. were trying to pack all into minimum no. of pages to keep the costs down. Still it is the content that matters.

 

Yes Rigel, lot of the setups have been documented in a number of books , as Blowfish points out Al also points out the probable scenarios that could unfold.

 

Taylor does this for each day of the 3 day cycle in his book which is a more difficult read than Al Brooks , however understanding price action as per his style would certain allow better entry and detection of reversals. Ofcourse this would be complemented by vol analysis as per Wyckoff.

 

Hi,

I've just received Al book.

Monad, could you please tell me names of the books you are mentioning (Taylor and Wickoff). Are theses books easily available?

thanks

[albrooks 10]

fwiw, the daily chart is forming Barb Wire after a protracted move and this usually results in a reversal. Most of the time, it becomes a Failed Flag, popping out of the top and then reversing, but it could just sell off.

The pullback should reach the start of the channel in this Spike and Channel bull off the March low, and that is around 750 - 780.

Then, we should make one more leg up to a Higher High, creating a Wedge on the daily, and this would be followed by a test of the bear low (Higher Low or Lower Low) before trying to go up again.

 

BBBUUUUTTTTT, this is all coming from a guy who makes most of his money off daytrading, so it is simply intellectual gibberish for those interested in applying Price Action to a daily chart. As the chart unfolds, other scenarios can become more likely.

 

Good luck everyone!

Al

[monad 10]

Hi,

I've just received Al book.

Monad, could you please tell me names of the books you are mentioning (Taylor and Wickoff). Are theses books easily available?

thanks

 

The Taylor Trading Technique (Paperback)

by George D. Taylor is available at Amazon.com, it is a very tough read, you can get some idea of the concepts on the Taylor thread on this website.

 

Wyckoff is a course, not a book, if you go into the following threads on the Wyckoff forum you should get more details, you can also inquire further on those threads, plus there is a ton of free available from Dbphoenix there which is invaluable as is his ebook which is relatively inexpensive and will certainly supplement what you read in Al Brooks.

 

http://www.traderslaboratory.com/forums/f131/wyckoff-resources-3866.html

 

There are also threads in there on "Ask any wyckoff related questions and Trading the Wyckoff Way"

[forrestang 10]

Yesterday....Don't pay attention to anything after 11:20 as this is where i rolled contracts and merged data so it is skewed.

 

This is my attempt at marking H/L 1/2's.

Feel free to point out mistakes.

 

Any reason you're using a 3 minute chart? Did you mark up a chart for yesterday?

 

btw, I've been printing out a black and white chart of the NQ and ES after market everyday and marking it up. It is probably something that is going to be helpful? The ES go over is kind of redundant as i stared at it all day, the NQ is usually similiar but different enough to still gains some perspective usually.

 

And this book is taking forever to get here, ordered a week ago, and didn't leave amazon till the 10th, wtf?

[albrooks 10]

these were my favorite trades from yesterday

[forrestang 10]

these were my favorite trades from yesterday

 

In hindsight looking at your chart, that major Trend Channel seems to be an important basis for most of the trades taken that day for you.

 

For example, the four short trades that were counter to the main trend starting at about 10:45 and on, I can see how you would have confidence to take those....i.e. with the way it fits into the big picture.

 

How long does it usually take for you to get such a clear picture of the day?

 

In this time frame, are you just expecting price to go back towards the bottom of the Trend channel so you are only looking short? The picture should explain what I'm asking.

[rigel 10]

1st trade -tlb presumably trendine break, which trendline are we talking about

 

what are tcl, bw, dt.

 

lh - is that lower high.

[albrooks 10]

the move to 930 was a two legged sideways move that had 2 smaller 2 legged moves in it. as the move traveled sideways, it broke the trendline from yesterday and this move became a large possible Final Flag, so I was looking for reasons for the trend to turn down. The false BO of the top of the channel was perfect and the trend was then down from there unless something else developed, which it did not.

 

 

tcl trend channel line

bw barb wire

dt double top (bear flag)...the Lower High was in the form of a Double Top Bear Flag

[Gabe2004 10]

Any reason you're using a 3 minute chart? Did you mark up a chart for yesterday?

 

I am using the 3min chart because Iget killed by the retracements that happen in the 5 min after my entry.

Trueth be told, I am using tighter stops than Al is recommending)

 

 

Yesterday....Don't pay attention to anything after 11:20 as this is where i rolled contracts and merged data so it is skewed.

 

 

 

Any reason you're using a 3 minute chart? Did you mark up a chart for yesterday?

 

I am using the 3min chart because Iget killed by the retracements that happen in the 5 min after my entry.

Trueth be told, I am using tighter stops than Al is recommending)

 

btw, I've been printing out a black and white chart of the NQ and ES after market everyday and marking it up. It is probably something that is going to be helpful? The ES go over is kind of redundant as i stared at it all day, the NQ is usually similiar but different enough to still gains some perspective usually.

 

And this book is taking forever to get here, ordered a week ago, and didn't leave amazon till the 10th, wtf?

[ACS 10]

And this book is taking forever to get here, ordered a week ago, and didn't leave amazon till the 10th, wtf?

 

If you go to the Wiley website you can get a headstart by downloading chapter 1 to read while you wait for the book to arrive.

[ACS 10]

Did the ES just complete a two legged break of the bear trendline from yesterday and do we now look for a test of the extreme near today's low?

[Gabe2004 10]

I have a question which is marked in the chart.

Thanks for any replies.