Al Brooks Price action Trading course

A friend shared me this video on price action trading.

Most things work 40-60% of the time.  There is no holy grail.

5% of the time market is in a strong breakout,  no decision trade in the direction of the trend.

In 5% clear trend. -- Ascertain direction and get in quickly.  Buy close of bull bars- pull backs.


95% not in a pure trend-- both bulls and bears can make money.

Initial risk,  every trader has initial risk that is different.

Actual risk.--- number of ticks needed to not take a loss on that trade.

Target needs to be as big as risk.

When probability not in trend.  need 2x risk.

Wider stop = smaller size.

A lot of profit at 1 x 2 times risk. Computer driven.

• Take partial profits at min equation as of 2x actual risk. 

• There is a profitable way to manage both short and long

Assume institutions are profitable.  Always an institutional seller and buyer.  In general there is balance.

• Market spends most of the time at point of the control.

PROBABLILTY IS THE SOURCE OF ALL EMOTION OF TRADER

• Makes beginners not entry too early or too late
• Reward should be at least equal to risk.
• if uncertain 40-50% of the time--- need 2x risk. 
• Institutions can enter profitably on any tick on the day.  They have a profitable strategy and employ it. 
• Hedge in other markets
• Our edge is to trade setups.  Always near support or resistance.   Risk is small-- buying on support or probability is high. 
• Profits disappear quickly..  take at least 1/2  at profit target. 

Buying breakout --- there's an institution betting on failure of breakout. 

Trading only profitable market structures. 

Short at the bottom of a trading range should not be fighting with 2 sided trading.