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

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

Al Brooks

ISBN: 978-1-118-16625-3

Nov 2011

480 pages



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 pieces: 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.

Acknowledgments xi

List of Terms Used in This Book xiii

Introduction 1

PART I Price Action 35

CHAPTER 1 The Spectrum of Price Action: Extreme Trends to Extreme Trading Ranges 55

CHAPTER 2 Trend Bars, Doji Bars, and Climaxes 59

CHAPTER 3 Breakouts, Trading Ranges, Tests, and Reversals 77

CHAPTER 4 Bar Basics: Signal Bars, Entry Bars, Setups, and Candle Patterns 83

CHAPTER 5 Signal Bars: Reversal Bars 89

CHAPTER 6 Signal Bars: Other Types 101

CHAPTER 7 Outside Bars 155

CHAPTER 8 The Importance of the Close of the Bar 169

CHAPTER 9 Exchange-Traded Funds and Inverse Charts 173

CHAPTER 10 Second Entries 177

CHAPTER 11 Late and Missed Entries 181

CHAPTER 12 Pattern Evolution 185

PART II Trend Lines and Channels 191

CHAPTER 13 Trend Lines 195

CHAPTER 14 Trend Channel Lines 209

CHAPTER 15 Channels 219

CHAPTER 16 Micro Channels 249

CHAPTER 17 Horizontal Lines: Swing Points and Other Key Price Levels 269

PART III Trends 275

CHAPTER 18 Example of How to Trade a Trend 289

CHAPTER 19 Signs of Strength in a Trend 307

CHAPTER 20 Two Legs 319

PART IV Common Trend Patterns 323

CHAPTER 21 Spike and Channel Trend 325

CHAPTER 22 Trending Trading Range Days 359

CHAPTER 23 Trend from the Open and Small Pullback Trends 383

CHAPTER 24 Reversal Day 415

CHAPTER 25 Trend Resumption Day 423

CHAPTER 26 Stairs: Broad Channel Trend 431

About the Author 437

About the Website 439

Index 441