Trading Price Action Trends by Al Brooks:

A Book Review for Traders

Published in 2012, Al Brooks’ “Trading Price Action Trends” is the first book in his three-part series on price action trading. It delves into the world of identifying and profiting from trends, a core concept for active traders.

This book is specifically geared towards serious traders who want to understand price movements and make informed trading decisions based on price action analysis, also known as naked charting.

Content and Chapter Breakdown

The book is structured around the idea that successful traders piggyback on institutional buying and selling trends. Brooks argues that by deciphering price charts bar by bar, traders can glean valuable insights into these underlying institutional flows.

Content Breakdown
The book is divided into three main parts:

• Part 1: The Foundations of Price Action Trading
  This section lays the groundwork for understanding price charts and how they reflect institutional activity. Brooks introduces basic concepts like price bars, support and resistance zones, and trend identification.
• Part 2: Trading Trends with Price Action
  Here, Brooks delves into the core of his strategy. He details specific price patterns, including trend bars, engulfing bars, and breakaway bars, that signal potential trend continuation or reversal. The book emphasizes the importance of confirmation from subsequent price action to validate these signals.
• Part 3: Putting It All Together
  Brooks guides readers on integrating the concepts into a cohesive trading approach. He covers money management, position sizing, and risk control practices crucial for navigating the dynamic nature of trends.

Chapter Review

The book’s chapters progressively build upon each other. Here’s a glimpse into some key chapters:

• Chapter 2: The Anatomy of a Price Bar: This chapter breaks down the different elements of a price bar, such as the open, high, low, and close, and how they provide valuable clues about market sentiment.
• Chapter 5: Identifying Trends: Brooks outlines various methods to confirm an uptrend or downtrend, including trendlines, moving averages, and channel patterns.
• Chapter 8: Trading with Engulfing Bars: This chapter focuses on a powerful price action pattern – the engulfing bar – that signifies a potential breakout from a trading range.
• Chapter 11: Exit Strategies: Proper exits are crucial for protecting profits and managing risk. Brooks discusses various exit techniques, including trailing stops, fixed profit targets, and using price action signals.
• Chapter 13: The Mental Game of Trading: The book acknowledges the psychological challenges traders face. Brooks offers strategies for managing emotions, staying disciplined, and developing a winning trader mindset.

Target Audience

This book is geared towards traders, particularly beginners and those interested in a price action-based approach to trend trading. While Brooks uses five-minute charts as his primary example, the concepts can be applied to other timeframes as well.

Strengths of the Book

• Emphasis on Simplicity: Brooks’ approach focuses on basic price patterns, making it understandable for both new and experienced traders.
• Clear Visual Examples: The book is packed with charts that illustrate the discussed concepts, aiding in practical application.
• Focus on Risk Management: Brooks dedicates a significant portion to risk management techniques, a vital aspect of trading success.

Overall Assessment

“Trading Price Action Trends” offers a clear and practical approach to trend trading using price charts. The emphasis on price action patterns provides valuable tools for identifying potential trading opportunities. However, it’s important to remember that no single book guarantees success in the markets.

Here are some additional points to consider:

• The book primarily focuses on short-term trends using lower timeframes.
• Backtesting and paper trading the strategies on various markets are recommended before risking real capital.
• Price action trading requires discipline and risk management to be successful.

Conclusion

“Trading Price Action Trends” by Al Brooks offers a valuable resource for traders who want to understand price movements and develop their trend-following skills. The focus on price action analysis and practical trade strategies makes it a good starting point, but traders should be aware of the limitations and potentially explore other technical analysis approaches to create a well-rounded trading strategy.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Happy trading
may the pips be ever in your favor!