Presentation on theme: "Al Brooks Overview Presenter: Bill Bouwmeester. Al Brooks Daily Analysis Website"— Presentation transcript:
Al Brooks Overview Presenter: Bill Bouwmeester
Al Brooks Daily Analysis Website http://www.brookspriceaction.com
Brooks On Scalping When ES Daily ATR is 10-20 pts, using a 2 pt protective stop is a reliable approach If scalping for a 1 pt profit, you need to win more than twice as often as you lose Therefore, you need to be right about 70% of the time just to break even For this reason, Brooks mostly swing trades
Brooks on Intraday Swing Trading An ES swing setup has a high probability to achieve 10 pts during the intraday move when ATR > 15-25 There are 3-6 setups a day where you can make 4 points while risking 2. If you trade these with a 4 pt. profit target and a 2 pt. stop, you only have to win 40% of the time to be profitable. In practice, you will exit some trades at 1-3 pts because of an opposite signal. Your 2 pt stop should rarely be hit. However, once the mkt has moved 2-3 pts in your direction, Brooks suggests moving stop to break even. Never risk > 4-5 ticks once profit =>2 pts.
Brooks Defining Trends A Trend: a series of price changes that are either mostly up (bull) or down (bear) A trend can be as short as one bar or longer than all bars on a screen
Als Four Trend Categories The Trend: When price action becomes Always in Long or Always in Short in the eyes of the trader Swing: Two or more smaller trends with a series of higher highs and lower lows or vice versa Pullback: a temporary countertrend move which can be part of a trend or swing Leg: a smaller trend which is part of a larger trend, swing or pullback
Most Profitable Trend Pattern In an Always In Long Trend, Swings should be trending upward with each Pullback above the prior Pullback resulting in a new high; Vice versa in Always In Short Trend Strong momentum moves have at least a test of the extreme following each Pullback All strong moves usually have at least two Legs even if the 2nd falls short and reverses