Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader

by Al Brooks

A practical guide to profiting from institutional trading trends The key to being a successful trader is finding a system that works and sticking with it. Author Al Brooks has done just that. By simplifying his trading system and trading only 5-minute price charts he's found a way to capture profits regardless of market direction or economic climate. His first book, Reading Price Charts Bar by Bar, offered an informative examination of his system, but it didn't allow him to get into the real nuts and bolts of the approach. Now, with this new series of books, Brooks takes you step by step through the entire process.

By breaking down his trading system into its simplest institutional piggybacking or trend trading (the topic of this particular book in the series), trading ranges, and transitions or reversals, this three book series offers access to Brooks' successful methodology. Price Action Trends Bar by Bar describes in detail what individual bars and combinations of bars can tell a trader about what institutions are doing. This is critical because the key to making money in trading is to piggyback institutions and you cannot do that unless you understand what the charts are telling you about their behavior. This book will allow you to see what type of trend is unfolding, so can use techniques that are specific to that type of trend to place the right trades.

Discusses how to profit from institutional trading trends using technical analysis Outlines a detailed and original trading approach developed over the author's successful career as an independent trader Other books in the series include Price Action Trading Ranges Bar by Bar and Price Action Reversals Bar by Bar If you're looking to make the most of your time in today's markets the trading insights found in Price Action Trends Bar by Bar will help you achieve this goal.

Genres: Finance, Business, Nonfiction, Economics

485 pages, Kindle Edition

First published November 9, 2011

Reviews

[Joe Xtarr]

This year, I finally hit my limit on how much longer I want to stay poor, and started learning how to trade. So, while a huge part of my soul is dying in this new experience, I'm treating the markets like any other hustle, and this book has definitely been helpful. The prospect of stealing money from rich people is getting me through this, and learning the technical mechanisms of litetally anything is right in my wheelhouse. So, overall, this was a fine book. His video series are even better. Hopefully, I come out of this with a retirement plan, and not a cocaine addiction. Wish me luck.

[Ben · Rating 3 out of 5]

The thing with Al Brooks (at least in his famous trilogy) is that he starts strong and pretty succinct, but then devolves into a rambly barrage as the chapters drag on. I imagine if he spent less time talking and more time showing (e.g. more chart breakdowns and visual representations of what he's talking about) what he meant, the books as a whole would be more palatable. This is especially true in sections where he describes bar types purely in text form. I don't know how he or his editor thought that'd be a good idea.

Regardless, if you ascribe to PA trading, or maybe just want to branch out into something else, this is still a worthwhile read. I wouldn't blame anyone for dropping out even partway through, though.

[Mira · Rating 2 out of 5]

skimmed through the rest of it, I didn't like the lack of visual representation of what is written in the text, and also it was waaay too repetitive

[Guilherme Jaques Ogawa · Rating 5 out of 5]

Para todos aqueles que querem aprender a especular qualquer ativo do mercado financeiro utilizando gráficos e leitura de preços, a sequência de livros de Al Brooks é tudo o que você precisa. Brooks criou um curso completo de tudo o que ele aprendeu em seus 30 anos como trader e compilou em sua trilogia, de forma acessível para todos. O conteúdo é denso, mas vale cada centavo.

[Franklin Zhang · Rating 5 out of 5]

Emphasis on signal bars, trend lines and channels, trend patterns

[Ilze Cakste · Rating 5 out of 5]

I both hate and love Al Brooks' books. Whether trading is your side-hustle or a full-time pursuit, if taken seriously his books deliver results.

It is dense, unforgiving, and absolutely does not care about your feelings. Al Brooks does not simplify, motivate, or entertain - he trains.
If you’re serious about trading, this is hands down one the best resources of price action and market structure. It’s hard. It’s exhausting. It rewires how you see charts forever.

You will suffer. You will reread pages. You will hate it.
And you will come out better.

Not beginner-friendly. Absolutely trader-making.

[Minh Vu · Rating 5 out of 5]

Best price action book

- not so easy to follow bit it is very insightful and practical to day trader for understandig the bull and bear in any market.
- I like the way Al Brooks start the book series with Trend because it highlight the fundamental of new traders’ task is to defining the trend and trade with it.
- Recommend to all new traders.

[Jimbo Stark · Rating 2 out of 5]

Incredibly convoluted and disorganized. There's useful information on understanding market behavior (at the cost of a headache every few pages) which short-term traders hugely benefit from. The editors should have advised Brooks better on the terrible prose. I hope newer editions can fix this.

[Roderick Saba · Rating 5 out of 5]

Seriously for serious trader

[Omkar Hankare · Rating 4 out of 5]

A bit difficult to read but surely has some valuable information.
NOT Recommended for beginners.

[Alan Tsuei · Rating 3 out of 5]

一、這本書不是寫給初學者看的，不建議初學者閱讀，硬要閱讀更多的結果會是一頭霧水，但是對有經驗的交易者來說則或多或少會有提示與助益；二、技術分析只是一個想對價格做出解釋的概念，但這個概念不是十拿九穩的，自然每人都可對圖表自行解讀並分門別類，但講得越細反而越會陷入前後矛盾的困境，因此大道至簡，掌握概念即可；三、技術分析是為了能讓投資者取得數學概率上的優勢，所以失敗是常態，了解這個概念就不會害怕止損出場；四、利用技術分析來確保最後盈利太於虧損方是正道，所以一定要先利用模擬盤來打磨盈利的策略，等模擬盤取得自言後才進而以小量金額實盤來鍛鍊交易心態

基礎：

技術分析就是價格為一切依歸，只是市場隨時會變，所以要隨機應變

小時間級別固然可以降低風險，但同時也降低了成功率，畢竟一個小波動就可能被打止損

盡量避免在重要經濟數據公布前進場，應該等市場回穩後再判斷

不要追漲殺跌

順勢交易時可以考慮左側進場，但逆勢交易時則一定要右側進場

當出現右側進場的機會時，如果出現比左側進場的價格更好的機會，就千萬要小心是否為陷阱

限價單入場需要有經驗來判斷，新手盡可能不要如此進場

移動性止損應該設在最近一個高/低點以下一個單位的地方

急速算是突破的一種，而通道則是區間一種，需要用兩種不同的交易方式對待

止損是要等價格創出新高或新低之後才能移動，太早移動只會增加被掃損的可能

水平的阻力或支撐在區間市場時比較有參考價值，強趨勢時則很容易會被突破

k線：

價格不是處於趨勢就是處於區間，因此一根k線要嘛是趨勢k線，要嘛就是無趨勢的十字星k線

如果一根k線看起來很強勢，但和前一兩根k線大致重疊，那就只能算是十字星，不能當成信號k線

信號k線的本意就是多空力量開始出現不平衡的狀態，只要後一根k線驗證此一判斷就可進場以在數學概率上取得優勢

k線是否能成為信號或入場k線是要等該k線走完才能判別，千萬不要著急進場

入場前的信號k線固然重要，但入場後的一兩根k線也同樣重要，由此可以確認是否符合自己進場的判斷

因為十字星k線不是趨勢k線，所以不代表反向力量占優，自然不能當成反轉的進場信號

有時長實體k線是否為信號k線要和之前數根k線一起判斷，如果與之前數根k線重覆太高，那就不能看成是信號，要特別小心價格仍在區間內

數k線來判斷回調結束與否，也就是波浪理論中abc回調的變體

外包k線代表多空交戰激烈，不建議新手進場，尤其是在區間裡出現的長k線很有可能是機構的陷阱

趨勢：

最簡單判斷趨勢就是看HH、HL或LL、LH

趨勢的斜率陡，回調的斜率緩，就更能驗證趨勢的強勢

當確認趨勢時，交易者就該找機會進場，如果進場點不是很好，就用小倉位進場來搏趨勢延續

如果急速拉升或下跌後沒有回調，而是出現平盤，那就代表趨勢相當強勁，而且很可能會有第二波運動，所以是個順勢進場的機會

強趨勢時如果出現光k線時就可以直接進場，因為光k線就代表趨勢仍然很強，延續的機會很大，不過要注意這只是在強趨勢中才能如此進場

強趨勢時k線不會重覆性太高，一旦重覆性太高在長時間級別裡就會是十字星型態

有時多根k線一直在遠離均線處運行，而且每根k線都不長，這時老手就會積極用小倉位進場，因為他們知道趨勢強勢且健康的情形下往往回調都不明顯

趨勢越強時信號k線往往越不重要，因為這正是強趨勢的表現，如果擔心，那就用小倉位與較大止損來進場

窄通道與陡通道代表趨勢強勁，如果沒有出現高潮k線，很有可能盤整後出現等距上漲，並且很難在第一次回撤就被反轉，所以第一次價格對趨勢線突破很可能是假突破，是進場跟隨趨勢的好機會

急速通道時絕不能做逆勢交易，就算刮頭皮都不建議，因為市場絕大多數的交易者都在等回調進場而非試圖參與反轉

趨勢長k線後如果是一個同向的小k線，那順勢建倉是可行的，如果是十字星則就不要進場，如果是反向小k線則一定不要進場

趨勢中的三推向上或向下後就有可能進入區間或回調，也就是波浪理論的1、2、3浪

趨勢中的首次回調往往是進場刮頭皮的機會，但千萬不要入場參與強趨勢中出現的第一次反轉，一定要等第二次機會再看有沒有信號出現

趨勢回調完成後可能會有順勢的等距運動，不過這時很少會有急速拉升，而是會出現通道的走勢

急速趨勢後往往會出現同方向的通道，並且很可能通道的結束點在急速起點的兩倍處，當通道被反向突破後，可以在回測時進場參與這段反向運行，而這段反向運行可能會測試通道起點，如果真的回測到通道起點處，就要看這段趨勢的強弱，如果夠強則會延續走趨勢挑戰新高，如果不夠強則可能會變成區間

趨勢線或趨勢通道線需要被測試才算，而且最好看到假突破才能當成進場信號，畢竟逆勢交易的失敗率是很高的

趨勢通道線也就是逆向交易的參考線

建議先畫趨勢線，再用其平行線來畫出趨勢通道線，而這兩條線最好被測試三次以上，並且畫線可以從寬判定

區間：

旗形、三角形等都可算做區間，都是多空處於某種平衡的狀態

收斂三角就是由兩條趨勢線所組成，而發散三角就是兩條趨勢通道線所組成

雖然通道也是和區間一樣高拋低吸，但要記得有時通道是牛旗或熊旗，比起區間更難交易，更要注意不要逆勢交易

當市場突破任何通道，那第一目標都是等距位

交易者可以把通道當成熊旗或牛旗來看，這樣就不會被一波上漲或下跌給影響

通道與微型通道的差別在於微型通道只能順勢，而通道則和區間一樣多空都能參與

反轉：

除非一切情況都完美，否則不該做反轉交易，就算進場也要輕倉，最好等回踩後再看信號k線進場

雙k線反轉要等反轉k線超過前一根k線才算成立，否則很可能是陷阱，不過就算如此還是要等回彈後形成LH或HL再進場，否則止損會太遠，總之，反轉k線必須要是趨勢k線才行，十字星是不構成反轉的可能的

大部分楔形中價格對趨勢通道線的假突破常常是反轉信號

當趨勢線的斜率越來越低時就代表成為區間或反轉的機會出現

一輪下跌出現長k線高潮時，如果接下來的k線出現逆勢的內包k線，就更可驗證反轉的可能

逆勢交易時，記得做多要在多頭k線上方進場，放空則要在空頭k線下方進場

[Subramaniam Konar · Rating 5 out of 5]

A very good book on price action trading by Al Brooks.
He has provide a very detailed and good insight on how to read an understand the price action in trading process.
Must admit, the insight provided is not very easy to follow but will recommend anything looking to develop core price action trading skills
The Chart & their explanation provided is very detailed at bar level
Newbie trader looking to read this should have basic understanding of chart pattern like Wedge, bull/bear Flag, double bottom/Top, Trendline etc before jumping to reach this book

[Randall · Rating 4 out of 5]

Definitely not for the faint of heart, this book will make you work. It is very detailed, which is both it’s greatest pro and its biggest con. Good because it provides many examples and helps learn the concepts through repetition. Tough because it can feel endless at times.
All and all it provides great tools to read price action and interpret strength and weakness with only bars and trend lines, instead of dozens of complex indicators.
If you are willing to put in the work, there’s a lot of value here.

[Gurmukh Sandhu · Rating 3 out of 5]

Info on Reading charts

[Mohammad Rahban · Rating 5 out of 5]

A must read for every price action trader

[Hanser Vargas · Rating 4 out of 5]

price is expensive content is good.

[Peter · Rating 3 out of 5]

First part of a 3 book series of Al Brooks trading price action. Still a bit confusing as his first book was (trading charts bar by bar), but with more examples and set ups, which makes it a bit clearer.
I still dont know if I would recomend it though. Im hoping that the 2nd and 3rd book of the series end up blowing my mind, because so far it hasnt.
Dont get me wrong, its a good book, but still; its written in a very confusing style and its not that well organiced.
Im giving this 3 stars and hoping for part 2 to be awesome. Will come back with more updates, as I promised after reading his first book ;)

[Willis Chillis · Rating 3 out of 5]

Al Brooks is pretty far out there. I did not like some of his stance on "not listening to the news". Other than that I like how he did give the perspective of the size of what we are attempting to do as traders.

[Shane White · Rating 5 out of 5]

The only book a Futures trader would ever need!