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    Al Brooks Overview 1 2

    Uploaded by

    Jackson Trace
    Al Brooks focuses on intraday swing trading of futures contracts like the ES. He advocates using a 2 point protective stop when daily average true range is between 10-20 points and targeting 4 point profits from high probability 3-6 setups per day. This allows traders to be profitable winning only 40% of the time by risking 2 points to make 4. Brooks defines trends and identifies patterns within trends like swings, pullbacks, and legs. The most profitable trend pattern has pullbacks that result in new highs in an uptrend and new lows in a downtrend.

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    © All Rights Reserved
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    Al Brooks Overview 1 2

    Uploaded by

    Jackson Trace
    3K views23 pages
    Al Brooks focuses on intraday swing trading of futures contracts like the ES. He advocates using a 2 point protective stop when daily average true range is between 10-20 points and targeting 4 point profits from high probability 3-6 setups per day. This allows traders to be profitable winning only 40% of the time by risking 2 points to make 4. Brooks defines trends and identifies patterns within trends like swings, pullbacks, and legs. The most profitable trend pattern has pullbacks that result in new highs in an uptrend and new lows in a downtrend.

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    Al Brooks focuses on intraday swing trading of futures contracts like the ES. He advocates using a 2 point protective stop when daily average true range is between 10-20 points and targeting 4 point profits from high probability 3-6 setups per day. This allows traders to be profitable winning only 40% of the time by risking 2 points to make 4. Brooks defines trends and identifies patterns within trends like swings, pullbacks, and legs. The most profitable trend pattern has pullbacks that result in new highs in an uptrend and new lows in a downtrend.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    3K views23 pages

    Al Brooks Overview 1 2

    Uploaded by

    Jackson Trace
    Al Brooks focuses on intraday swing trading of futures contracts like the ES. He advocates using a 2 point protective stop when daily average true range is between 10-20 points and targeting 4 point profits from high probability 3-6 setups per day. This allows traders to be profitable winning only 40% of the time by risking 2 points to make 4. Brooks defines trends and identifies patterns within trends like swings, pullbacks, and legs. The most profitable trend pattern has pullbacks that result in new highs in an uptrend and new lows in a downtrend.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23
    At a glance
    Powered by AI
    The key takeaways are that Al Brooks discusses his approach to scalping and swing trading futures, defines different types of trends and trend categories, and outlines the most profitable trend pattern.

    The four trend categories defined by Al Brooks are: The Trend, Swing, Pullback, and Leg.

    Al Brooks defines a trend as 'a series of price changes that are either mostly up (bull) or down (bear)'. He also notes that a trend can be as short as one bar or longer than all bars on a screen.

    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

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