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


Always In Long & Short
H1,H2, H3
H1,H2 Signal Bars In Uptrend
Where To Place Entries
Analysis of H1 Setup
Analysis of H2 Setup
Placing Trades In A Down Trend
Analysis of L1 & L2 Setup
Where To Place Stops
Bull Flag with Measured Move
5 Min Measured Move H1 Entry
ES Same Action On Heiken Ashi
Pre Election ES Bull Flags
Bear Flags
Bear Flag with Measured Moves
Yesterdays H & S w/ L1, L2 Entries