Al Brooks 5 Min Methods

After viewing Al Brooks videos and looking at some of his books I have decided that I want to learn more about his way of doing things.

 

Is anyone else interested?

 

It is a bar by bar way of doing things. Each bar has a lot to tell us, or so he says. I have collected a few things that we could discuss, so, what do you say?

The stress is mainly on trendlines, trendchannel lines, and bars and 20 min EMA,

H1 and L1 setups for those who are starting out.

5min and 1min charts is the reason so many traders lose money, thats what brokers say. Its a killing field unless you have a special gift which 99% of ppl dont have xD

Sounds good to me Freddie.

The stress is mainly on trendlines, trendchannel lines, and bars and 20 min EMA,

H1 and L1 setups for those who are starting out.

 

Yes, Hellboy, as you say plus he also uses ‘micro trends’ of 3 or 4 bars. Another interesting thing is that he expects the reversals to have a two leg state.

BTW The EMA is 20 bar.

 

5min and 1min charts is the reason so many traders lose money, thats what brokers say. Its a killing field unless you have a special gift which 99% of ppl dont have xD

 

He agrees with you about the smaller TFs but argues that he can have enough time to decide to trade or not on the 5 min TF. He cannot manage the 3min TF himself.

I have decided to use EUR/USD 5 min chart starting from midnight yesterday - actually it will be 10pm GMT, my broker is GMT +2.

 

http://i914.photobucket.com/albums/ac341/freddieforII/ABT1_zps8b03ff03.png

 

Here it is and we now have to analyse the first part from 10pm to open of Asian Session.

Edited February 15, 2013 by Freddie

http://i914.photobucket.com/albums/ac341/freddieforII/ABT1_zps8b03ff03.png

First black bar is an IB, 2nd is a doji but is also below the previous low so L1.

Al says that an IB could go either way but this one is bear-ish so the IB is a signal and the doji is the entry or the next bar when it passes the doji low. This might be L2, what do you say Hellboy?

After the strong bear-ish (micro) downtrend we have a a bullish doji. It tried to break the trend but failed with more sellers. Then another strong bear-ish bar.

http://i914.photobucket.com/albums/ac341/freddieforII/ABT1txt_zps5bc66e55.png

 

Al refers to dojis in trends as 'pause'. It is also possibly a retrace with the buyers in this case trying to reverse the trend. As before it is an IB.

I would have had my stop loss (SL) just above the previous bear bar and become stopped out.

Edited February 15, 2013 by Freddie

Best is to identify the Support and resistance areas first, and then for entering the bars would be analysed, its because the support and resistance areas most fertile places to enter with good risk:reward ratio.For time frame if one is scalping then lower tf is best, if positional swing then atleast 30 minute tf or higher.Yes AB talks of micro trendlines and micro channels and wedges also.Then bull flag and bear flag.Although these are all pretty subjective, but in due course of time one would be skilled, its not gonna happen overnight.In price action trading, you have to first trust your own self and decisions. Thats a essential must.

well, see the range of the bear bars before the trend line break, every trendline break need not be an reversal , it may be a bear flag or simply entering into an range in the lower tf.I dunno about the earlier price bars, but seems the open was on a high , but the there were sellers at those levels who drove the price below the low of the opening bar, it says something about the strength in the bear momentum, doesn't it?again what i could make out is that any attempt by the bulls to reverse the trend is countered by the bears in the next bar by fresh selling, that is no follow through after the bull bar, so wait for counter trend entry.Instead short below the bull bar low which was trying to reverse the bear.

 

Please others participate and comment, so that we together can learn.Doesn't matter if we are wrong, atleast someone would be there to point that out here, but its not so in real trading world, any mistake , pay with money.:(

http://i914.photobucket.com/albums/ac341/freddieforII/ABT1_zps8b03ff03.png

First black bar is an IB, 2nd is a doji but is also below the previous low so L1.

Al says that an IB could go either way but this one is bear-ish so the IB is a signal and the doji is the entry or the next bar when it passes the doji low. This might be L2, what do you say Hellboy?

After the strong bear-ish (micro) downtrend we have a a bullish doji. It tried to break the trend but failed with more sellers. Then another strong bear-ish bar.

 

Strictly going with AB set ups, with L1 or H1, one needs a pull back in a trend , then L1 happens, here I assume that there had been previous bear trend , if yes, then its a L1 entry , but a doji with a long upper tail, which suggests lot of sellers at the up level, so one can go short.

Sorry I haven't been able to add to the thread Hellboy. Been without internet on and off as well as having been away from home for most of the day.

 

Having said that, nobody seems to want to take part anyway. Thanks for the latest download!!

I would like to jump in and contribute too. I hate it when my "thanks button" is limited and I can't properly thank my friends.

Sorry I haven't been able to add to the thread Hellboy. Been without internet on and off as well as having been away from home for most of the day.

 

Having said that, nobody seems to want to take part anyway. Thanks for the latest download!!

 

Just a second, think closely, how many really want to slug their a** off to earn money and by the way how many really make money from markets consistently and can make a living out of it.So its not surprising that there would be few takers if any.It takes thousands , literally 10,000 hrs of screen time is minimum to be of some meaning to trade proficiently and have some experience. I am still learning, everyday the market is different, it behaves differently, its characteristics is different, its context varies, every situation is unique, and there is no holy grail or shortcut to make money either.So if you want you can request a closure of the thread or else we can continue with your primary inputs, I can't post charts, since I really do not use any standalone software for charting.I rely on my broker's terminal, thats it.Hope see your charts soon.Regards.

I would like to jump in and contribute too. I hate it when my "thanks button" is limited and I can't properly thank my friends.

 

There are many other ways to thank your close ones, and you have already done that with me, I am indebted already to you.

By the way thanks between buddies sounds a bit odd, isn't it?>:D<

... I am still learning, everyday the market is different, it behaves differently, its characteristics is different, its context varies, every situation is unique, and there is no holy grail or shortcut to make money either...

 

You are quite right, never mind who want to join in or not.

 

I have been too busy the last few days to do anything here much. Today I have been looking at the Eur/Usd 4H chart and it has an interesting picture.

There has been a big down trend that has hit a S/R. It has now bounced back and forth for a while.

I suspect that Al would say that there are lots of both sellers and buyers there but they cannot get themselves organised yet.

Now what would we do? There are two pin bars making a double bottom and one in between hitting the 23.6 fib level. I would suspect that we should wait for the fib line to be broken then buy or the low S/R line to be broken and sell. Maybe after each has experienced a pullback and retest.

 

http://i914.photobucket.com/albums/ac341/freddieforII/EurUsdbounce_zps01ae605c.png

Edited February 22, 2013 by Freddie

To cut the long verbatim short :

1.I do not use Fib/Gann/Elliott, so can't comment.

2.Looking at previous bear bars, there is tremendous bearish momentum, so majority of the traders have a tendency to fight trend and jump in early.

3.May be we are looking at a bear flag, so unless the high of the 4th bar from last is taken out with good follow up there would be no change in sentiment or trend.We are in a pullback or a range till that time, although there is a break of the trendline by the last candle.I would wait for the retest again before going long.

Have to wait for more action to unfold, either a L1 short or a pullback bull entry, needs more confirmation , also I dunno the support and resistance levels, if its a significant support level, then it should hold.If not then down is imminent.

Just my two cents.

This chart includes the 08:00 bar which is actually 06:00 GMT so will include the opening of the London Session.

I have included Fib bars because comfluence is often looked for by all sorts of traders.

The S/R lines I have made although the light green ones are from NickB who runs the Forex4noobs site and trades a 4H and 8H setup.

 

http://i914.photobucket.com/albums/ac341/freddieforII/EurUsdbounce2_zps4a2a2328.png

 

I was wondering if a 1H chart would be useful to show the H1, L1 marks if they occur.

Edited February 22, 2013 by Freddie

well as my understanding goes, the S/R should be an area instead of a strict line, its because, its a highly probabilistic environment, so when a trader gives approximate structure to the market, he takes it for absolute, which is not, I think I am getting point across.

So better to look for the hourly S/R areas and then look for the trend in the trading time frame, then fine tune your entry in the lowest time frame.

What I am seeing is just a single leg , we need more price bars to be of any meaningful conclusions.Hope it helps.

This chart includes the 08:00 bar which is actually 06:00 GMT so will include the opening of the London Session.

I have included Fib bars because comfluence is often looked for by all sorts of traders.

The S/R lines I have made although the light green ones are from NickB who runs the Forex4noobs site and trades a 4H and 8H setup.

 

Hey my friend, have you watched NickB's Price Action Videos on YouTube?

Hey my friend, have you watched NickB's Price Action Videos on YouTube?

 

Yes, and signed up for his site

good system