3 New Books:: Trading Price Action Trading Price Action Trading Price Action

3 New Books:
TradingPriceActionTRENDS
TradingPriceActionTRADINGRANGES
TradingPriceActionREVERSALS
AvailableonAmazonandWiley
Brookspriceaction.com
Tradersrunit,Iprovidecontent
Freearticles
Freedetailedanalysisof5minEminiforseveralmonths
FreevideosofdailyEminianalysis
Realtimedailywebinar($99/month)
WhatCanTheMarketDo?
y TheMarketisinaneverendingCycle
Trend
TradingRange
BreakoutinEitherDirection
Trend
WhatCanTheMarketDo?
y Trend
Strong=Breakout=Spike
Weak=Channel
y TradingRange
y Small=Pullback =pauseinaTrend
y Big=BreakoutinEitherDirection
WhatisPriceAction?
HowToDrawChannels
ChannelsGetBroaderandFlatter
IsaTrendStrongorWeak?
y AllTrendsbeginwithaSpike (Strongtrend)
y MomentumslowsandaChannel begins
(WeakTrend)
y ChannelsevolveintoTradingRanges
y AstheMomentuminoppositedirection
increases,aTradingRangeforms
Channels
Channel:WeakTrend containedbetweenacoupleoflines
BullChannel
yWeakbulltrendwithabulltrendlinebelowand
abulltrendchannelline above
BearChannel
yWeakbeartrendwithabeartrendlineaboveand
abeartrendchannelline below
Channels
ChannelsOfferTradingOpportunities
y WhentheMarketTeststheToporBottom,itthenEither
BreaksOutorReverses
y ThisCanCreateTradesWherethe
Reward isMuchGreaterthantheRisk
Channels=WeakTrend
AChannel isahybrid between
aSpike (StrongTrend)andaTradingRange
Channels=WeakTrend
Channelscanbe:
y Strong(Tight)andbehavemorelikeaSpike
y Weak(BigSwings)andbehavemorelikeaTradingRange
Botharetrends,butweakerthantheSpikePhase
Channels=WeakTrend
StrongChannel
y Steepandtight
y BehavesmorelikeaSpike
y SpikeonaHigherTimeFrame
y Tradeinthedirectionofthetrend
Channels=WeakTrend
WeakChannel
y Lotsofswings,likeaWedgeoraStairsPattern
y BehavesmorelikeaTradingRange
y Tradeinbothdirections
Brookspriceaction.c
om
Brookspriceaction.
com
EnterWithStopsorLimitOrders?
y BuyingonaStop=BuyingaBreakout
y EveryTail=FailedBreakout
y Ifmostbarshavetailsandoverlappriorbartoomuch,
thenmostbreakoutswillfail
y Tails=Bettertobetonfailedbreakouts
y enterwithlimitorders(Buybelow,Sellabove)
StopEntry=BreakoutEntry
but,Tails=FailedBreakouts
WhyareChannelsDifficult?
y Uncertaintyishigh
y Rewardcanbelowcomparedtorisk
y AlwaysTryingtoReverse
y SometimesTrendAcceleratesandhasBreakout:
BullBreakoutaboveBullChannel
BearBreakoutbelowBearChannel
EdgesareFleetingandSmall
y Thisisazerosumgameandyouaretryingtotake
moneyfromverysmartpeople,whoaretryingvery
hardtotakemoneyfromyou.
y Alltradingissubjectiveandhard.
MARKETINERTIA
y Alwaysbetthatthemarketwillcontinuetodowhatit
hasbeendoing
y WhenthemarketisTrending,80%ofattemptsto
reversewillfail(sotradeinthedirectionofthetrend)
y WhenthemarketisinaTradingRange,80%of
attemptstobreakoutintoatrendwillfail(sotradein
theoppositedirectionoftheincipienttrend)
FailedBullBreakoutofBullChannel:
Target=BottomofChannel
BullBreakoutofBullChannel
StrongBullTrend(NotChannel)
SpikePhase:Getlong!!
y Buyatthemarket
y Buycloseofanystrongbullorbeartrendbar
y Buyabove(andbelow!)priorbar
y Pressbetsandbuybreakoutsaboveswinghighs
y Buysmallpullbacks Brookspriceaction.com
TightBullChannel
(StrongChannelButaWeakBull
Trend)
y ItisaSpikeonahighertimeframe,soonlylook
toBuy
y SwingingisBetterthanScalping
TightBullChannel
Trend)
y Buyatandbelowlowofpriorbar
y Buyclosesofbothstrongbullandbearbars
y Buybreakoutsofbullflags
y Buyatsupport
y Takeprofitsatnewhighsandresistance
Tight(Strong)BullChannel:
DiagnoseEarly,ThenBuy!
WillactmorelikeSpikethanChannel
Tight(Strong)BullChannel
BuyForAnyReason(andDontSell)
y HowDoIGetLong?
y WhereisMyProtectiveStop?
Tight(Strong)BullChannel
BuyForAnyReason(andDontSell)
StrongBullChannel
BuyonStopsAboveBars
StrongBullChannel
BuyWithLimitOrdersBelowBars
StrongBullChannel
BuyAtTheMarket
TightBullChannel
Trend)
y ProtectiveStopsWhenSwinging
TrailStopbelowmostrecenthigherlow
ProtectiveStopsWhenScalping
Dontallowpullbacks
Getoutbelowanybearbarorstrongbullbar
StrongBullChannel
ProtectiveStops
WeakBullChannel
Bull impliesTrend
Channel impliesWeakTrend
y TheWeakeritis,themorelikelytradesinboth
directionswillbeokay
WeakBullChannel
y Overlappingbars
y Weakfollowthoughafterbulltrendbars
y Manybarswithtailsontop
y Manybarswithbearbodies
y Obviouspullbacksandoftensmallswings
WeakBullChannel
(ItisstillaBullTrend)
y Tradableswingsinbothdirections
y BehaveslikeaTradingRangethatisTiltedUp
y BuyLow,SellHigh,Scalp,likeinaTradingRange
y Buyatsupport
y Takeprofitsorevenshortatnewhighsandresistance
WeakBullChannel
y ProtectiveStops
Bettertoscalpmosttrades,likeinaTradingRange
IfonlyScalping,dontallowpullbacksandgetout
belowanybearbarorstrongbullbar
InitialStopisBelowtheSignalBar
WeakBullChannelinBull
WeakBullChannelinBull:
ProtectiveStops
WeakBullChannelinBear
ShrinkingStairs
(BuyersGettingMoreEager)
BroadChannel
TradeLikeaTradingRange:
BuyLow,SellHigh,Scalp
BroadChannel
Here,aWedge.TradeLikeaTradingRange.
S&PCashIndex,Month
S&PCashIndex,Week
S&PCashIndex,Day
10YearNotes,Month
10YearNotes,Day
GLD,Week:
ChannelsEvolveintoTradingRanges
AAPL,Month
AAPL,Week
AdditionalInformationon
PriceAction
Freeexamplesof5minEminichartsthatareanalyzedbarbybar
BrooksPriceAction.com

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