Video 9A (# 1 of 3) 1.

088

~ ~~-
ac<s "' '
2081

@Albrooksall
an
•
---------·~ /
2050

2078

Bar . . . . ount1ng
~

.
,·---·--,..--.--· 911
2076
I

---·,·,.-·-----·-·---·/ 2074

Al Brooks 2072

Price Action Fundamentals

Brooks Tradtng Course
'13 30 ,~ 00 '" 30 15 00 \5 30 16 00
 Slide
• What is a pullback (PB) 2

■ What is bar counting? 17

k

@Albrooksall

[Link] BrooksPriceAction .com Slide 1

Smallest reversal:

• In bull, low of bar

below low of prior bar

@Albrooksall
K K ...
• In bear, high of bar I

above high of prior bar

k K

[Link] BrooksPriceAction .com Slide 2

 K
PB
• In bull trend, a doji bar or bear bar,
even if not below low of prior bar,
is an implied pullback (PB)

@Albrooksall
• These are actual pullbacks on
lower time frames

Low of bar fell

below low of prior bar
K K

5 min bear bar is It is an actual pullback

implied pullback on 1 min chart
5 1
[Link] [Link] Slide 3
 K
K PB
K
• In bear trend, a doj i bar or bu 11 bar,
even if not above high of prior bar,
1+ High of bar went
0 I above high of
is an implied pullback (PB) +■ prior bar

r,
@Albrooksall
• These are actual PBs on i
lower time frames
Ii?

5 min bear doji It is an actual PB

5 PB is implied PB on 1 min chart

[Link] BrooksPriceAction .com Slide 4

PBs in trend usually provide Bulls buy on reversal back up,
high probability, low risk entries betting on trend resumption
Use wide stop
2066 00

@Albrooksall
2064 00

2062.00

2060 00

2058.00
PB since fell below low k
2056.00

~t Tail is PB on lower 2054.00

time frame
Stop 2052.00

1.00 11.30 12.00 12:30 13:00 2/11 07.00 07:30 08:00 08"30 09.00 09·30 1 0.00 10"30 11 00 11 30

[Link] [Link] Slide 5

 20 k
TR
206&00

.o1~
@Albrooksall
2084 00

~Tt+ 9~t
9~r9
Once PB grows to 20 or more bars,
it is Trading Range (TR)
1]~11+
2056 00

Probability for bulls now

2054 00
about same as for bears
20S2.00

1 00 11 30 1200 1230 1300 2/11 0700 0730 0800 0830 01100 01130 1000 1030 11 00 11 .30

[Link] [Link] Slide 6

Strong Trend: Why Does It Pull Back?

As trend continues, it gets far from stop

Risk is greater
Institutions must prevent risk from getting too big
Popular way is to reduce position size by taking profits
When bulls take profits,

@Albrooksall
market pulls back, and goes sideways to down

E?•
- - - Stop
o+t
□+~
- - Stop Once bulls confident that bears
will fail to reverse bull trend,
bulls buy again
Now have tighter stop

[Link] [Link] Slide 7

Deep Pullback: If Premise Still Good , Trend Continues

Some PBs go all of the way to beginning of trend, PBs

and sometimes beyond
As long as premise valid, trend still good

Often rally

@Albrooksall
above resistance
in bear

Often fall
below support
Deep PB to DB HL MTR
in bull
Held slightly above prior low

[Link] [Link] Slide 8

 50%

50%

50% PB in bear means distance to stop (risk) is same distance .

as to bottom of bear trend (minimum reward)
Probability favors trend resumption,
50% so traders like to sell on 50% PB in bear trend

@Albrooksall
Traders buy 50% PB in bull trend 50% I

Basis for much of math for traders

--1---1--1~ - - -~ ~ Q

Measured Moves Trader's

•

Equation and Probability

See videos on Measured Moves, and on
Trader's Equation and Probability

[Link] [Link] Slide 9

 50%

50%

Bears look to sell 50% PB from a selloff •

Bulls look to buy 50% PB from a rally

50%

@Albrooksall

[Link] BrooksPriceAction .com Slide 10

Pullback: Sometimes Falls below Bull Breakout If in TR

Bulls gave up
Parabolic Wedge Top Created big bear BO
)
Opening Reversal Always In Short
,/ +hl~

@Albrooksall
Always In Long
Buy close
Buy for any reason
PB from rally fell to below bottom of bull BO
Bulls will buy reversal up into TR
TR
[Link] BrooksPriceAction .com Slid e 11
k :
H3
■ Method to help traders Bulls will buy BO
find PB entries above High 3 Bull Flag

High 4 and
■ Trend often resumes after PB big High 2

@Albrooksall
that has just one leg

■ Traders often wait for

PB with 2 or 3 legs 1
2 3 2 3
■ Rarely, 4 - 6 legs:
2 - 3 leg PB can fail 1
nd 4
2 PB of 2 - 3 legs
4-6 2
2-3
2-3
[Link] [Link] Slide 12
Bar Counting: Count Number of Legs in PB
k
0

For example: Triangle

B buy entry
■ An ABC correction has
two legs

@Albrooksall
ABC A C
■ Triangle is PB with 3 legs
in one direction (5 or more total)
3 5
A C
■ Don't worry that most patterns 3
1 2
are not perfect
ABC Bull Flag
buy entry
ABC
[Link] BrooksPriceAction .com Slide 13
PB in Bull Ends: Bar Goes above High of Prior Bar
k k

■ PB ends when current bar's high k k

goes above high of prior bar

■ This trend resumption up can fail

■
@Albrooksall
Can get another 1- 2 legs down
1 2
If get 4 or more legs down,
then probably reversal, not PB
4

[Link] [Link] Slide 14

PB in Bear Ends: Bar Goes below Low of Prior Bar
k k

■ PB ends when current bar's low

goes below low of prior bar
k k
■ This trend resumption down can fail

■
1-2
If get 4 or more legs up,
@Albrooksall
Can get another 1- 2 legs up

then probably reversal, not PB

4

[Link] [Link] Slid e 15

 Slide
• What is a pullback (PB) 2

■ What is bar counting? 17

k

@Albrooksall

[Link] BrooksPriceAction .com Slide 16

Bar Counting: Count Trend Resumption Attempts or Legs
k

• Count number of attempts

to resume trend

• Each resumption attempt in bear

@Albrooksall
3
usually has bear bar 2
1

• Same as number of legs

2 3
in pullback
1

• Each leg in bear flag usually has one

or more bull bars

[Link] [Link] Slide 17

High 1 Bull Flag: Sideways to down in Bull or TR
H1

If high of next bar goes above current bar:

k k
■ Current bar becomes
High 1 buy signal bar

@Albrooksall
(High 1 buy setup, High 1 reversal,
High 1 Bull Flag)
k H1 k H1 H1 H1
■ Bar that goes above
is High 1 entry bar
k k H1 k

[Link] [Link] Slide 18

Bar Counting: High 1 Might Be 1st of 2 - 3 Legs Down
k H1 2 3

• High 1 ends the first leg New BO so start

looking for new PBs
of sideways or down move
H1
• Next High 1 might be end

@Albrooksall
of pullback in strong bull
H1
• May become small leg
in larger pullback Hl

[Link] BrooksPriceAction .com Slide 19

Bar Counting: 2 nd Leg Down Is High 2
k H2
k H2
• Label next occurrence of bar with
k
high above high of prior bar as
High 2 reversal, ending second leg

@Albrooksall
• The prior bar is the
High 2 buy signal bar Hl
H2
k H2 k
+

[Link] [Link] Slide 20

Strong Bull Trend: Many High 1 and High 2 Buy Setups
H1 H2

H2

@Albrooksall Hl
H2

DB Bull Flag is a High 2

buy setup
H2

High 3 is usually also a Triangle when sideways

H3
Here, it is just a Tight Trading Range (TTR),
TTR
or a Wedge when sloped down

[Link] [Link] Slid e 21

 Strong Bull Trend: Raise Stop after Each New High
3 H1
Unusual to see more than 3 consecutive High 1 bull setups,
because trends usually weaken, and get more complex PBs
Here, there were 5 consecutive High 1 Bull Flags
5 H1
After each new high, Q+,+ Hl
trail stop below most recent Higher Low (HL)
'•+¢t+

@Albrooksall
-H l -

HL Hl

Hl
,. ¢ .J.. T "T"., + • .J..
+·•++~•¢~+T•+"T"~T

t-t-

Protective stop

[Link] BrooksPriceAction .com Slide 22

Don't Lose Sight of the Goal: Looking for Reason to Buy

Sideways to down leg: Here, also a Triangle l

■ Look to buy PBs

@Albrooksall
■ Example, look for High 2 Bull Flag DB Bull Flag
H2 is a H2 Bul l Flag
1 2
■ It is two-legged,
1 2 3
sideways to down pullback (ABC) H2

ABC
Bulls buy just above bull bar,
betting on trend resumption up,
H2
after BO above High 2 Bull Flag

[Link] BrooksPriceAction .com Slid e 23

Bar Counting: Many Acceptable Ways to Label the Counts
k k k
Don't lose sight of the goal Bulls count number of bear bars
Trying to get long in bull trend that are followed by bull or doji bars
One good way is to buy a PB
(Also, in bear trend, selling PB
is good way to get short) D

@Albrooksall
+
Hl
Hl
H2

Hl

H3
0
Count number of H3
buy signal bars H2
Hl
H2 Count number
H3
of legs down

Buy reversal up

[Link] BrooksPriceAction .com Slid e 24

Bar Counting: Look for Bigger Patterns
k L3
Wedge, so L3 top L1 L2
Ll, but OT so L2

@Albrooksall
Wedge, so High 3 bottom

Wedge Bull Flag,

H3
so High 3 Bull Flag H3

[Link] [Link] Slide 25

Bigger PB in Bull Trend or TR: Then High 2, 3, or 4 Bull Flag
H2 H3 H4

• Third leg down ends with H5

High 3 reversal
H3
• Fourth leg ends with

@Albrooksall
High 4 reversal
i
H4
• Beyond that, stop counting Hl

since market is now H2

TR or bear H4
H3

HS, strong bear breakout

2nd
Leg Down likely ____.> HS

Now either TR or bear

[Link] BrooksPriceAction .com Slide 26

Sideways to up in Bear or TR: Signal and Entry Bars
k k

After PB, if low of next bar goes below PB bar:

k k
• PB bar becomes PB k
Low 1 sell signal bar L1 k

@Albrooksall
(Low 1 sell setup, Low 1 reversal,
Low 1 Bear Flag) L1 L1 L1

• Bar that goes below is Low 1 entry bar

k L1 k

[Link] [Link] Slide 27

Sideways to up in Bear or TR: Sell Low 1, 2, and 3
L1 L2 L3

■ Low 1 ends first leg of

the sideways, or up move
L1 Ll L2
L3

■ Further legs are

@Albrooksall
L.2
Low 2, Low 3, and Low 4
reversals Ll Tc
Ll

L2 L3 L4 T

[Link] [Link] Slid e 28

 Slide
• What is a pullback (PB) 2

■ What is bar counting? 17

@Albrooksall

[Link] [Link] Slide 29

End of Video 9A # 1 of 3 2.008

• lle5
fJ,t:fi

2 082

@Albrooksall •
2080

2 078

.__________ _... ♦l•Ud

f 2 076
.I
____ .. -
___.,,,.•
/

___
,. .,
2 074

' - Al Brooks
2 072

Price Action Fundamentals

Brooks Tradtng Course
13 30 14 00 14 30 15 00 i5 30 1600
Video 9B (#2 of 3) 2088

ac<s 2082

@Albrooksall
an~
•
2080

2 078

Bar . . . . ount1ng ___ _,.

t
. ---------- 41111
!-· 2076

-✓• - · - . ,

-·-·,·,·-·-·-·-·-·--~·/ 2074

Al -
Brooks
------------~- ~ 2 072

Price Action Fundamentals

Brooks Trad mg Course
13 30 14 00 14 30 15 00 15 30 16 00
 Slide
■ Double Top Bear Flags, and 2
Double Bottom Bull Flags

@Albrooksall
■ High 4 and Low 4 Consecutive reversals 13
H4 L4

[Link] [Link] Slide 1

 L2 L2

■ All Double Tops (DT) are OT Bear Flag,

L2
so L2
Low 2 sell setups OT so,
DT L2 Low 2 Bear Flag
■ Don't enter unless

@Albrooksall
context is good
Tc
■ All Wedge Tops and
Wedge Bear Flags
T
are Low 3 sell setups Wedge Bear Flag,
L3 so Low 3 Bear Flag

L3

[Link] · [Link]
Broo k sPrice · Slide 2
 H3 H3

■ All Double Bottoms (DB) are Wedge Bull Flag,

so High 3 Bull Flag
High 2 buy setups
H2 Tight Bear Channel, so
■ Don't enter unless low probability of profit

@Albrooksall
context is good

■ All Wedge Bottoms and

Wedge Bull Flags DB, so
High 2 Bull Flag
are High 3 buy setups
H2
H3
I

[Link] BrooksPriceAction .com Slide 3

 H2 ABC

Strong bull BO above Wedge Bear Flag

k Good follow-through bar

@Albrooksall
2nd Leg Up likely

DB, so
9 High 2 Bull Flag
'tlri 1.w+)l BO PB buy signal
Wedge LH MTR

H2

[Link] [Link] Slide 4

DB Bull Flag and DT Bear Flag: Rarely Perfect

DB Bull Flag, DT Bear Flag,

in weak bull trend in bear trend
2 nd low is slightly lower 2 nd high stayed below 1st

@Albrooksall
Correct stop for bulls is
below bottom of bull leg
If exit, buy again on reversal up
Protective stop

[Link] [Link] Slide 5

 (MM)
If selloff before the flag is strong,
( the odds of trend resumption down,
to a Measured Move (MM) target are greater

+-
@Albrooksall
!
1
Sell BO below
OT Bear Flag

..___
'\_ ·~99T t 1
often strong ~ Measured Move target
MM down

[Link] BrooksPriceAction .com Slide 6

DT Bear Flag: Rally Often Strong

Strong rally in bear trend

Possible reversal up,
but still Lower High (LH)
Buy vacuum test of resistance,

@Albrooksall
prior Lower High in bear channel

Higher probability sell after >

#Yt
bear BO and follow-through

- - - - - - - - - ,t9•+9~
1

Sell Climax
Sell vacuum down
to MM target

[Link] [Link] Slide 7

 @Albrooksall
DB reversal
If 1st HL, usually MTR Once clear bu ll trend with prior HL,
See video on Major Trend Reversals DB Bull Flag

[Link] [Link] Slide 8

 @Albrooksall
t

OT reversal
If 1st reversal down, usually MTR Once clear bear trend with prior Lower High,
See video on Major Trend Reversals OT Bear Flag

[Link] BrooksPriceAction .com Slide 9

Flag and Reversal: Trade Them the Same Way

Does not matter if call a OT or DB,

a flag, or a reversal L2
Trade them the same Every OT in bear is
Low 2 sell setup, and a
□·+ OT Bear Flag

@Albrooksall
o+--•!O•T- ,_.a.. 6 1 t
~ ~ •~- •~1•Q• '
Once clearly a bear trend, L2 L2
Ll
A OT is a bear flag
H2
Hl H2
Big bull breakout,
but bad follow-through and still LH, Every DB in bull, is
and Expanding Triangle High 2 buy setup
Bulls need HL to confirm reversal Here, DB HL MTR

[Link] BrooksPriceAction .com Slide 10

DT, but Not yet Clear Bear Trend: Call It DT LH Reversal

OT once clear bear trend

Ll L2
is OT Bear Flag

@Albrooksall OT early in
bear trend is
OT LH MTR

[Link] BrooksPriceAction .com Slid e 11

Main Points: High 4 and Low 4 Consecutive Reversals

Slide
■ Double Top Bear Flags, and 2
Double Bottom Bull Flags

@Albrooksall
■ High 4 and Low 4 consecutive reversals 13
H4 L4

[Link] BrooksPriceAction .com Slid e 12

Consecutive Bottoms: High 4, 5, or 6
H4 H5 H6
Consecutive bottoms can be High 4, 5, or G When 1st reversal attempt is Wedge, it is a H3
Each bottom attempt has 2 or 3 legs, If 2nd reversal attempt is H2, get HS buy signal
so each is either High 2 or High 3 If 2nd attempt is also Wedge, get HG buy signal

Strong bear BO below Wedge,

@Albrooksall
so 2 or 3 legs down likely
Bear BO and failed bottom so reset the count

J,.. l
T H2
H3

H2 H5 H6 Hl H2
H4 HS
Buy the new H2, or just look to buy HS or HG
Consecutive bottom attempts, have higher probability of reversal

[Link] [Link] Slide 13

 Consecutive bottoms can be High 4, 5, or 6 Each bottom attempt has 2 or 3
legs,
so each is either High 2 or High 3
H4 H5 H6
2-3
H2 H3

When 1st reversal attempt is Wedge, it is a H3

If 2nd reversal attempt is H2, get HS buy signal
If 2nd attempt is also Wedge, get HG buy signal
H3
H2 H5
H6
Strong bear BO below Wedge,
so 2 or 3 legs down likely
Bear BO and failed bottom so reset the count

2 3
 Tight Bear Channel, with many bear bars closing on lows
k Buying reversal above weak buy signal bar
has low probability of profit

L2

@Albrooksall
Exit below Low 2 Bear Flag,
or below Wedge Bottom
✓
H2 ✓
H3

Buy reversal up H2
' Buy reversal up
HS
High 4 and Low 4 setups are same as
Elliott Wave double zig zag
H4 L4
[Link] [Link] Slide 14
 H4 H2+H2

Dt @Albrooksall Hl

H2
Bear BO so failed H2 buy signal
Hl
H3 H2
H4
Many bulls will begin count over
+ Other bulls will assume still pulling back,
to H3 or H4 bull flag
H3 H4

[Link] BrooksPriceAction .com Slide 15

 H4 H2+H2

H2 0.1
H2 buy triggered by 0.1 pip BO

@Albrooksall Hl

H2 -
H2 /'
Bear BO so failed H2 buy Hl
H3

Many bulls w ill begin count over H2

Other bulls will assume still pulling back, H4

to H3 or H4 bull flag
H3 H4
[Link] BrooksPriceAction .com Slide 16
Strong Bear Trend: Never Look for Bottoms
80%
80% of reversals fail in strong trends
Channel too tight for major reversal
Only get minor reversal, which is bear flag
Ll BO on higher time frame
Ll

@Albrooksall
Ll

Hl
H1 H2
Hl

Only look for Hl, H2 buy setups in

bull trend, or Trading Range L1
Never look to buy a strong bear trend! Great traders expect bottoms to fail
Strong bear trends always form Wedge Bottoms, Only look to sell, and sell for any reason
but channel too tight to buy Ll bear flag is good reason

[Link] BrooksPriceAction .com Slide 17

 L4 L5 L6

L3 L2
L4 L5 L6 L5 L6
st
Consecutive tops can be Low 4, 5, or 6 When 1 reversal attempt is Wedge, it is a L 3
Each top attempt has 2 or 3 legs, If 2nd reversal attempt is L 2, get L 5 sell signal
so each is either Low 2 or Low 3 If 2 nd attempt is also wedge, get L 6 sell signal
2 3
Sell the new L 2, or just look to sell L 5 or L 6
L2 L3 LS
L4
Consecutive top attempts, have

@Albrooksall
L2
Ll higher probability of reversal
L2 L5 L6
L3 t
L2

Ll

T
Strong bull BO above Wedge,
so 2 or 3 legs up likely
Bull BO and failed top, so reset the count
2 3

[Link] BrooksPriceAction .com Slide 18

 Sell reversal
Exit with loss LS
L4 down

@Albrooksall
above Wedge Top Ll L2

~
L2

Ll
tt
Sell reversal
down

Tight Bull Channel, with many big bull bars closing on highs
Selling reversal down, has low probability of profit

[Link] BrooksPriceAction .com Slide 19

 L4 L2+L2

L4
L2

L3

@Albrooksall
Ll

L2

Ll L2
Breakout, so failed L2 sell
Many bears will begin count over
Other bears will assume still
pulling back to L3 or L4 Bear Flag
L3 L4
[Link] [Link] Slide 20
 L4 L2+L2

L4
L3
L2
Ll
L2

@Albrooksall
Ll

Bull breakout so failed L2 sell

Many bears will begin count over
Other bears will assume still L2
pulling back to L3 or L4 bear flag
L3 L4
[Link] BrooksPriceAction .com Slide 21
Strong Bull Trends: Never Look for Tops

L6
LS
L4 . it-•.~-
L3 • 1 1 1 l),.----

L2 a+.tcJ++......,. H1

@Albrooksall
Now TR, and not strong trend
Hl

Only look for L 1, L2 sell setups

L1 L2
in bear trend, or Trading Range

□ Never look to sell a strong bull trend!

Only look to buy, and buy for any reason
Hl Bull Flag is good reason H1

[Link] BrooksPriceAction .com Slide 22

Low 4 : Usually Low 2 on Higher Time Frame
L4 L2

Low 4 on 5 min Low 2 on 10 min

L4 L2
L2 L3
Ll
0

@Albrooksall

[Link] BrooksPriceAction .com Slid e 23

 Hl
t

Hl
Hl
@Albrooksall
H2
Hl

Hl H1
++ After every new BO,
start count over again with H1
Look to buy pullback after every new leg

[Link] [Link] Slide 24

 Slide
• Double Top Bear Flags, and 2
Double Bottom Bull Flags

@Albrooksall
• High 4 and Low 4 consecutive reversals 13

[Link] [Link] Slide 25

End of Video 9B #2 of 3 2.088

• 066
@•!•ii

2 082

@Albrooksall •
2 080

2 078

- · - ---- • -- fl,S:19
,I
•
-· -
2 078
.I
___ _,,,•
/ ___. -
- ·- · 2 074

Al Brooks
2 072

Price Action Fundamentals

Brooks Tradtng Course
13 30 14 00 14 30 1500 15 30 16 00
Video 9C #3 of 3 2.008

' 088
♦X•!:ii

2,082

@Albrooksall
•
2080

2 078

r- -- -- ·-·---· ♦M
, 2 076
.I
9 ___ _,,,•
✓- - -- · -

- ·- · 2 074

Al Brooks 2072

Price Action Fundamentals

Brooks Trading Course
13 30 14 00 14 30 1500 15 30 16 00
 Slide
■ Endless pullback 2

■ Higher and lower time frames 8

■
@Albrooksall
Countertrend traders exit on High or Low 2
H2 L2
14

[Link] [Link] Slide 1

 If Pullback Keeps Growing: May Become Opposite Trend

@Albrooksall
H3

Bear channel in bull trend is a PB (bull flag)

More likely to get bull breakout

---- ------- 20 k If grows to 20 or more bars,

it is an Endless Pullback
Odds of bull BO fall to about same
as for bear BO (50% for each)
50%

[Link] [Link] Slide 2

 H3

@Albrooksall
H3

tt H3

H3 so Wedge Bull Flag at MA,

but Tight Bear Channel, so low probability buy
Possible Endless Pullback, and early bear trend

[Link] BrooksPriceAction .com Slide 3

Bull Flag: Bear Breakout (below Wedge Bull Flag)

Bull flag has 40% chance of bear BO

40%

@Albrooksall
H3

Bear breakout and follow-through

Always In Short
Possible Measuring Gap

[Link] [Link] Slide 4

 Bull BO of bull channel

@Albrooksall
Bull channel in bear trend is a PB {bear flag)
More likely to get bear breakout
If grows to 20 or more bars, it is an Endless Pullback
Odds of bear BO fall to about same as for bull BO
{50% for each)
20 k
50%
[Link] [Link] Slide 5
Endless PB in Bull Trend: New Bear Trend

@Albrooksall
Hl H2 H3
H
4
Hl H2 T•
Bear breakout,
.,. 9 and follow through
Always In Short
• tr° Possible Measuring Gap
9 24 k 24 bar PB after bull BO
T
Endless PB
50% chance of bear BO
Q
50%

[Link] BrooksPriceAction .com Slide 6

Main Points: Higher and Lower Time Frames

Slide
■ Endless pullback 2

■ Higher and lower time frames 8

■
@Albrooksall
Countertrend traders exit on High or Low 2 14

[Link] [Link] Slide 7

 5
5 Minute TR: Think about Higher Time Frame

60 H2
5 60 min H2
5 min Trading Range buy setup

@Albrooksall Hl
H2

[Link] BrooksPriceAction .com Slide 8

5 Minute TR: Can Be 60 Minute L2 Bear Flag
5 60 H2

5 min Trading Ranges 60 min L2

5 sell setups
60
L2

@Albrooksall 0
L2

[Link] BrooksPriceAction .com Slide 9

 5 L1
5 Minute L1: Think about Lower Time Frame

1 1 min L3 Wedge
L3 sell setup

5 L1

@Albrooksall
5 min Ll L2 L3

[Link] [Link] Slid e 10

 5 L1
1 L2 L3

5 min Ll 1 min L2
sell setup

Ll
@Albrooksall

[Link] [Link] Slide 11

 5 H1 H2

Look to buy above prior high, Look to buy a reversal up

and entry is High 1 buy entry after 2 legs down, which
k is a High 2 buy setup
H1 2

@Albrooksall
H2

H1
H2
H1
H2 + + Hl

0 Hl H2

Don't worry about name

n the PB a Hl or H2 Buy PB in bull trend
Some computers see either way

[Link] [Link] Slide 12

 Slide
• Endless pullback 2

• Higher and lower time frames 8

@Albrooksall
• Countertrend traders exit on High or Low 2
H2 L2
14

[Link] [Link] Slide 13

 H2

When trading countertrend, most traders Some bears will sell

failed bull breakout
■ Sometimes let market
go against them once (H 1)

@Albrooksall
H1
■ They will not let it
go against them twice (H 2)
H2 Hl H2

[Link] BrooksPriceAction .com Slide 14

 H2

In bull, High 2 is 2nd attempt to Some bears will sell

failed bull breakout
resume bull trend
H2
H2
k

@Albrooksall
•If short, buy to exit
Exit short if
High 2 triggers,
• If flat, buy to get long
especially since
H2
Hl bull signal bar

Bulls will buy,

and they will win,
since bull trend

[Link] BrooksPriceAction .com Slide 15

 H2

Because both bulls and bears are buying

■ No one willing to sell

@Albrooksall
■ Market goes up to find sellers

■ High 2 is reliable buy signal in bull trend

H2 H2
Hl

[Link] BrooksPriceAction .com Slide 16

 L2

In bear, low 2 is a 2nd attempt to L2

resume bear trend
L2
Exit long if

@Albrooksall
L2
Low 2 triggers
■ If long, sell to exit Some bulls will buy / (Micro DT,
failed bear br eakout, > Micro Wedge)
■ If flat, sell to get short or above bull bar
Bears will short,
and they will win,
since bear trend

[Link] [Link] Slide 17

 L2

Because both bulls and bears are selling

■ No one willing to buy

@Albrooksall
L2
■ Market goes down to find buyers Ll

■ Low 2 is reliable sell signal in bear trend

L2

[Link] [Link] Slide 18

Exit Shorts If High 2 Triggers in Bull Trend
H2

Wedge Top sell signal, k

but bull signal bar and Tight Channe l
Low probability, but low risk
k

@Albrooksall
Exit shorts when H2 buy signal triggers in bull trend
I
Strong buy signal, so exit shorts
Strong trends always form Wedge reversals, but 80% fail
H2
k
80%

[Link] BrooksPriceAction .com Slide 19

Exit Shorts If High 2 Triggers in Bull Trend
H2
2 nd entry sell
Strong signal bar k

@Albrooksall (
Exit shorts when H2
buy signal triggers
in bull trend
Bulls will buy
strong buy signal

H2

[Link] [Link] Slide 20

 Slide
• Endless pullback 2

• Higher and lower time frames 8

@Albrooksall
• Countertrend traders exit on High or Low 2 14

[Link] [Link] Slide 21

End of Video 9C #3 of 3 2.088

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Al Brooks
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