Al Brooks is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.

Select Guide Rating

• Acknowledgments xiList of Terms Used in This Book xiiiIntroduction 1Part I Breakouts: Transitioning into a New Trend 35Chapter 1 Example of How to Trade a Breakout 53Chapter 2 Signs of Strength in a Breakout 61Chapter 3 Initial Breakout 81Chapter 4 Breakout Entries in Existing Strong Trends 91Chapter 5 Failed Breakouts, Breakout Pullbacks, and Breakout Tests 99Chapter 6 Gaps 119Part II Magnets: Support and Resistance 139Chapter 7 Measured Moves Based on the Size oftheFirstLeg(theSpike) 153Chapter 8 Measured Moves Based on Gaps and Trading Ranges 165Chapter 9 Reversals Often End at Signal Bars from Prior Failed Reversals 175Chapter 10 Other Magnets 179Part III Pullbacks: Trends Converting to Trading Ranges 183Chapter 11 First Pullback Sequence: Bar, Minor Trend Line, Moving Average, Moving Average Gap, Major Trend Line 205Chapter 12 Double Top Bear Flags and Double Bottom Bull Flags 213Chapter 13 Twenty Gap Bars 233Chapter 14 First Moving Average Gap Bars 239Chapter 15 Key Inflection Times of the Day That Set Up Breakouts and Reversals 245Chapter 16 Counting the Legs of Trends and Trading Ranges 253Chapter 17 Bar Counting: High and Low 1, 2, 3, and 4 Patterns and ABC Corrections 259Chapter 18 Wedge and Other Three-Push Pullbacks 301Chapter 19 Dueling Lines: Wedge Pullback to the Trend Line 313Chapter 20 “Reversal” Patterns: Double Tops and Bottoms and Head and Shoulders Tops and Bottoms 319Part IV Trading Ranges 327Chapter 21 Example of How to Trade a Trading Range 367Chapter 22 Tight Trading Ranges 377Chapter 23 Triangles 411Part V Orders and Trade Management 417Chapter 24 Scalping, Swinging, Trading, and Investing 419Chapter 25 Mathematics of Trading: Should I Take This Trade? Will I Make Money If I Take This Trade? 437Chapter 26 Need Two Reasons to Take a Trade 481Chapter 27 Entering on Stops 491Chapter 28 Entering on Limits 493Chapter 29 Protective and Trailing Stops 517Chapter 30 Profit Taking and Profit Targets 535Chapter 31 Scaling Into and Out of a Trade 543Chapter 32 Getting Trapped In or Out of a Trade 567About the Author 571About the Website 573Index 575

Al Brooks is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.

Select Guide Rating

• Acknowledgments xiList of Terms Used in This Book xiiiIntroduction 1Part I Breakouts: Transitioning into a New Trend 35Chapter 1 Example of How to Trade a Breakout 53Chapter 2 Signs of Strength in a Breakout 61Chapter 3 Initial Breakout 81Chapter 4 Breakout Entries in Existing Strong Trends 91Chapter 5 Failed Breakouts, Breakout Pullbacks, and Breakout Tests 99Chapter 6 Gaps 119Part II Magnets: Support and Resistance 139Chapter 7 Measured Moves Based on the Size oftheFirstLeg(theSpike) 153Chapter 8 Measured Moves Based on Gaps and Trading Ranges 165Chapter 9 Reversals Often End at Signal Bars from Prior Failed Reversals 175Chapter 10 Other Magnets 179Part III Pullbacks: Trends Converting to Trading Ranges 183Chapter 11 First Pullback Sequence: Bar, Minor Trend Line, Moving Average, Moving Average Gap, Major Trend Line 205Chapter 12 Double Top Bear Flags and Double Bottom Bull Flags 213Chapter 13 Twenty Gap Bars 233Chapter 14 First Moving Average Gap Bars 239Chapter 15 Key Inflection Times of the Day That Set Up Breakouts and Reversals 245Chapter 16 Counting the Legs of Trends and Trading Ranges 253Chapter 17 Bar Counting: High and Low 1, 2, 3, and 4 Patterns and ABC Corrections 259Chapter 18 Wedge and Other Three-Push Pullbacks 301Chapter 19 Dueling Lines: Wedge Pullback to the Trend Line 313Chapter 20 “Reversal” Patterns: Double Tops and Bottoms and Head and Shoulders Tops and Bottoms 319Part IV Trading Ranges 327Chapter 21 Example of How to Trade a Trading Range 367Chapter 22 Tight Trading Ranges 377Chapter 23 Triangles 411Part V Orders and Trade Management 417Chapter 24 Scalping, Swinging, Trading, and Investing 419Chapter 25 Mathematics of Trading: Should I Take This Trade? Will I Make Money If I Take This Trade? 437Chapter 26 Need Two Reasons to Take a Trade 481Chapter 27 Entering on Stops 491Chapter 28 Entering on Limits 493Chapter 29 Protective and Trailing Stops 517Chapter 30 Profit Taking and Profit Targets 535Chapter 31 Scaling Into and Out of a Trade 543Chapter 32 Getting Trapped In or Out of a Trade 567About the Author 571About the Website 573Index 575

Al Brooks is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.

Select Guide Rating

• Acknowledgments xiList of Terms Used in This Book xiiiIntroduction 1Part I Breakouts: Transitioning into a New Trend 35Chapter 1 Example of How to Trade a Breakout 53Chapter 2 Signs of Strength in a Breakout 61Chapter 3 Initial Breakout 81Chapter 4 Breakout Entries in Existing Strong Trends 91Chapter 5 Failed Breakouts, Breakout Pullbacks, and Breakout Tests 99Chapter 6 Gaps 119Part II Magnets: Support and Resistance 139Chapter 7 Measured Moves Based on the Size oftheFirstLeg(theSpike) 153Chapter 8 Measured Moves Based on Gaps and Trading Ranges 165Chapter 9 Reversals Often End at Signal Bars from Prior Failed Reversals 175Chapter 10 Other Magnets 179Part III Pullbacks: Trends Converting to Trading Ranges 183Chapter 11 First Pullback Sequence: Bar, Minor Trend Line, Moving Average, Moving Average Gap, Major Trend Line 205Chapter 12 Double Top Bear Flags and Double Bottom Bull Flags 213Chapter 13 Twenty Gap Bars 233Chapter 14 First Moving Average Gap Bars 239Chapter 15 Key Inflection Times of the Day That Set Up Breakouts and Reversals 245Chapter 16 Counting the Legs of Trends and Trading Ranges 253Chapter 17 Bar Counting: High and Low 1, 2, 3, and 4 Patterns and ABC Corrections 259Chapter 18 Wedge and Other Three-Push Pullbacks 301Chapter 19 Dueling Lines: Wedge Pullback to the Trend Line 313Chapter 20 “Reversal” Patterns: Double Tops and Bottoms and Head and Shoulders Tops and Bottoms 319Part IV Trading Ranges 327Chapter 21 Example of How to Trade a Trading Range 367Chapter 22 Tight Trading Ranges 377Chapter 23 Triangles 411Part V Orders and Trade Management 417Chapter 24 Scalping, Swinging, Trading, and Investing 419Chapter 25 Mathematics of Trading: Should I Take This Trade? Will I Make Money If I Take This Trade? 437Chapter 26 Need Two Reasons to Take a Trade 481Chapter 27 Entering on Stops 491Chapter 28 Entering on Limits 493Chapter 29 Protective and Trailing Stops 517Chapter 30 Profit Taking and Profit Targets 535Chapter 31 Scaling Into and Out of a Trade 543Chapter 32 Getting Trapped In or Out of a Trade 567About the Author 571About the Website 573Index 575