Al Brooks trading strategies have changed the game for futures traders. He left his medical practice to become a trader. Usually, we don’t hear doctors leaving their jobs to trade full-time. However, thanks to him, we have a great price action strategy to follow.
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Al Brooks Price Action Trading Review Introduction
The name may not have the same street cred as Warren Buffett or Stanley Druckenmiller, but Al Brooks has a faithful following in the investing community. Believe it or not, Brooks wasn’t even an investor by trade or education. He quit his career as an ophthalmologist to pursue being a full-time investor.
Brooks has been interested in the financial markets since he was quite young. When his wife gave birth to twin girls, he realized how much he could help raise his children if he could work from home. He quit his job as an ophthalmologist and began a day trading career. This resulted in him losing all of his money over ten years. Not exactly a great start.
Things turned around for Brooks. Otherwise, why would we be featuring Al Brooks trading in an article? He’s said he learned many valuable lessons over those first ten years. For example, he is not listening to other traders say, finding your systems, learning the laws of probability, and figuring out how to read support and resistance levels.
If you haven’t realized it, Al Brooks is a technical analyst. He’s widely considered one of the best to do it. Brooks famously has his Brooks Trading Course, as well as gives online webinars, provides YouTube educational videos, and, of course, trades himself every day the markets are open.
Check out Al Brooks’s trading course here!
Candlesticks eBook & Wallpapers
Al Brooks Trading Methods Review
Al Brooks Trading runs several paid courses that investors can use to learn how to read the markets through charts and price action. His flagship Brooks Trading Course offers two different options for learners:
As you can see, the courses contain nearly 100 hours of videos each. Brooks has said this is comparable to investing courses provided at Harvard Business School. And it’s the equivalent of an MBA in trading. So, how much does the Brooks Trading Course cost? Surprisingly, Brooks only charges $399, which is a value compared to other trading courses on the market.
A live trading room is open every trading day by a group of traders confirmed as being trained under Al Brooks. The trading room provides live market insights and allows users to follow along with the traders making trades in real-time. The cost of this room is $99. And while Brooks isn’t officially a part of it, the room is advertised on his website.
The best part about Brooks is that much of what he does is based on his passion for teaching other people how to be successful traders. The courses are great, and you can find endless positive reviews online. But many of his tips and techniques can be found for free on his YouTube channel. Brooks also posts many of his thoughts and ideas on his blog, linked to his website.
Buy the Al Brooks trading course here!
What Is Price Action Trading?
Price action trading considers technical analysis and the performance of a stock or equity within a given timeframe, usually within the same trading session. This is often why it’s considered a form of day trading. However, investors can use these price movements to form swing trades or long positions.
The belief is that most stocks have similar tendencies in how they behave around key resistance and support points, like simple and exponential moving average prices. If you look at a stock’s chart, it may just look like a bunch of peaks and valleys. But the key to technical analysis and price action is understanding what each of those movements means.
More often than not, these scenarios can lead to some familiar chart patterns that traders can use as either a bearish or bullish sign. And Al Brooks’s trading methods capitalize on these patterns and trend lines.
Al Brooks Trading Methods Review
In a recent blog post, Brooks reviewed some of his favorite Al Brooks trading patterns he uses daily in his trades. Some of this can get pretty technical. Once you’ve mastered charting and spotting these trends, it’ll go a long way in helping you to be a successful trader.
Major Trend Reversals: These are fairly self-explanatory. Most people with some technical analysis sense can spot these on a chart.
- A Bullish trend reversal is a series of higher highs and higher lows.
- A Bearish trend reversal is a series of lower highs and lower lows.
Here’s what it may look like on the chart:
There are a lot of other different kinds of trend reversals to spot. We just wanted to give you an idea of what it may look like on a chart for one of the most common types of reversals.
Final Flags
Sometimes, in technical analysis, you must use your imagination to understand what you’re looking at. And I find this especially true with flags. The main characteristic of a flag is a small area of horizontal trading. This is usually around one of the magnet levels, which is a support for bulls and resistance for bears. The final flag is a type of trend reversal. It can indicate an opposite move from what was happening before the flag.
Breakouts: While breakouts sound bullish, they can also be bearish if they breakout below a certain support level. Depending on the timeframe of the chart you’re looking at, you may have to zoom out a bit more to see if a breakout is truly occurring. Brooks has mentioned that breakouts are his favorite type of chart pattern. They have a high probability of being accurate. Hence why they’re apart of Al Brooks trading methods.
Check out Al Brooks trading course here!
Trading Patterns and Moves
Wedges: These are another very popular type of chart pattern. Ascending or descending wedges can signal an imminent breakout in either direction. Wedges usually have at least three legs up or down before traders recognize that one’s forming. But when one gets better at seeing wedges, they can often be another high-probability trade trigger.
Measured Moves: These can be any sort of pattern that occurs twice on a given chart. You’ve probably heard of double tops or double bottoms; or a leg 1 = leg 2 measure move. They don’t always happen. However, they happen frequently enough that the setup is easily recognizable on a chart. These often remind me of the Mark Twain quote: “History does not repeat itself, but it rhymes.”
Magnets of Support and Resistance: Brooks stresses over and over again the need to learn about support and resistance levels. And how stocks and traders behave around those points. Important magnet levels include moving averages, opening prices, previous day highs or lows, and trading range start and endpoints.
Does the System Work?
Al Brooks’s trading methods are great, but he’ll never guarantee profits or successful trading. Instead, he’s determined to educate traders enough that they can go off on their own and make money in the markets. Technical analysis and price action are great for people who don’t consider themselves long-term company shareholders.
Funda, the mental analysis of a company’s financials, valuations, and future growth opportunities, can be difficult to stay on top of. And it can also be debated. Traders who use price action don’t have to worry about whether or not a company is profitable. Instead, they focus on the stock’s behavior relative to the broader markets.
In a sense, it is a purer way of investing without relying on hours of research into a specific company or worrying about negative catalysts that could affect the stock in the short term. Experienced traders can pull up a chart of nearly any stock and identify whether a short-term or long-term pattern is beginning to form. It works incredibly well with normal stocks, but traders can exponentially grow their gains by incorporating options trading.
Final Thoughts: Al Brooks Trading Review
In the end, this is a decision only you can make. Price action and technical analysis trading require some dedication and time at a computer during trading hours, so if you are stuck at work or taking care of the kids, you may not find day trading your best strategy.
If you have the time, the Brooks Trading Course is one of the best trading resources available to investors and can truly change how you look at the markets. If you’re looking for a quick sample before committing to the Al Brooks Trading Course, try our basic and advanced day trading courses. This will help you gain a foundation for reading and interpreting stock charts.
Check out Al Brooks’s trading course here!
