Brooks Trading Course

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Money Show webinar — Entering late in trends

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Al Brooks delivered a webinar for The Money Show on November 3, 2015.

Al used slides shown at his Las Vegas Traders Expo presentation on “Entering Late in Trends”. All slides were from the upcoming new version of the Brooks Trading Course.

Here is the full video presentation (46 mins):

 

You can also download/view Al’s complete presentation here:

You can find the webinar replay on the Money Show site if preferred using the following link. Click the Money Show logo to find Al’s entry:

You may need a MoneyShow account to access the replay. When logging in, you will be directed to their site which has Al’s webinar along with others.

  • Hi Al,
    you recommend to continue BTC/STC for trend bars with ‘ strong close ‘ during strong trends, do you mean a tail less than 1/4 or 1/10th the length of a bar’s height ? or do you have other criteria for ‘strong C’ ? Thank you for sharing your valuable knowledge in the Books & the Course.

    • In general, if a bar has a body that is about the same size as the prior bars in the breakout, it is a reasonable BTC bar. If it has a tail that is about 50% of the bar, it is still BTC, but a PB is likely within 3 bars, and a trader can only BTC if he is comfortable with quick decisions, especially if he can skillfully scale in. If the body is especially big and it is at a resistance level, the odds begin to shift in favor of exhaustion and a PB. I explain this in much more detail in the new videos, which will be out early next year.

  • Question: When entering late in the trend and it quickly becomes apparent the trend is over as the market reverses, how does one gauge the optimal exit? There have been a number of major trend reversals in the 5 minute ES lately where it never comes back to break-even and always follows a trend instead of a trading range. I have gotten trapped in the reversal now several times. How do I ‘manage the trade’ such that I minimize the loss?

    • Whenever a trader thinks he is trapped, he has to get out. He might wait a minute or two, or a bar or two, but he has to get out. The big trend bar in the opposite direction is the bar when most of the institutions exit, and that is why the bar forms. It is reasonable to do the same if a trader has not exited earlier. It is unreasonable to stay in after seeing the institutions reversing.

  • Will it be possible to get the new slides for the Trading Course for those of who already purchased the course? They look great!

    • Hi Ralph, as current member/purchaser of course you will get full access to new course when ready. Not the slides, but full videos. Make sure you keep in touch, best done by joining the Members mailing list.

  • Al and Richard-
    excellent production and presentation. this approach is so much cleaner and clearer than version 1. I especially like not having that glowing pointer used in version 1. 🙂

      • Sorry, But I can not see a tiny, WHITE mouse pointer on a WHITE chart!
        I LOVE the “glowing” red dot, because I can see it.. CLEARLY!!

        I”m not old, and I have good eye sight and I don’t want to strain them trying to play find the pointer.

        I hope this makes sense.
        Thanks
        Mike.

        • Actually Mike, Al does intend to use the glowing red pointer, but only when needed. Existing videos have red dot moving around too much for many people’s comfort. New course focuses on animations to draw our attention, and the occasional use of red pointer will be good when justified.

  • Al, many thanks for sharing this. I am truly impressed at your method of reading the chart in a way that a chess grand master reads the pieces on a chess board. Price charts are there for anyone to look at, but in my opinion your way of looking at it is very unique. Would it be possible in your course update to include more info on trading options, as many traders stay away from these as they appear to be too complicated. I think options are a fantastic tool to use to define your risk and use appropriate leverage.

    • Several traders made the same request so I went ahead and made the options videos comprehensive in the new course. I have about 150 charts and 3 hours of videos.

  • Hi Al,
    I have just watched your video and I have a question concerning the slide number 4 (I will use bar numbers of the concerning chart here: http://www.brookspriceaction.com/album_showpage.php?full=true&pic_id=3806).

    I feel a bit trouble by some “a posteriori” explanations you provide on how to manage a trade. You say that proper trade management should result in a break even situation at worst, but:

    1) first you say that people entering at 18C can scale in lower in order to exit at break even (which is fine for me).
    2) but then for those who enter at 4C you say they can exit at BE at 6 after stating that 5 was a bullish bar. Without mentionning the possibility of scaling in.

    How do you know that scaling in short after 4 LOD will be a losing position?? And how would you advice people who scaled in (lets say at 8C since we were still AIS) on how to manage their full position??

    Maybe there is something I missed, but I think it is the kind of trade management issue people are facing very frequently.

    Regards,
    Pascal.

    • Traders have to decide quickly on a 5 min chart. If a trader is sufficiently disappointed, he will change his goal to avoiding loss instead of making a profit. In a typical Buy The Close situation (this was not one because the bulls need consecutive strong bull bars and did not get them), there is a high probability that traders will have that opportunity.

      Someone asked a similar question about bar 6 on the BrooksPriceAction website, which is a better place to post questions about specific bars like this one. This was my answer.

      “the mkt is always looking for a stop entry for the HOD or LOD in the 1st hour, and it usually forms with a pattern. 7 was a poss F BO above a DT and it was a PW. with 7 closing on its L, i thought it might be the HOD, even tho the odds were buyers below. i was waiting to enter long or short after getting a little more information.”

      One of the frustrating things about trading is that probabilities are almost always between 40 – 60% for both the bulls and the bears. On a 5 minute chart, traders often do not have enough time to formulate an opinion. However, the better a trader gets, the more money he will make. Most traders are hesitant to buy closes until there is at least a pair of consecutive strong bull bars. That is why they did not buy below bar 4, and in fact most sold.

        • If you are talking about selling 4 C based on the Money Show video, it is close to the points I was trying to make, but it really is more like something else. I talked about it in the Chat Room yesterday. The day was in Breakout Mode and bulls bought above bar 2 because of an opening range breakout. That was not a Buy The Close or Sell The Close market at the time, and therefore not really related to the video. Yes, it was also a Limit Order Market, and bears sold 4, but I thought the odds favored more up because of the Breakout Mode.

          • I understand. Anyway I have watched your video again and it is much clearer now. Thanks to take so much of your time answering our questions.

  • Hi. Just watched Al’s webinar …please let me know how download the video and slideshow PDF file ….Many thanks

    • Waiting on Money Show for webinar, likely later today Wednesday, after which both video and PDF will appear on this page. I may send an email to all to help inform everyone.

      • Nice, would appreciate that! Didn’t take any notes as I was so absorbed in it. Really powerful stuff all that about buying closes and then watching to see if the BTC traders can get out at break even….

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