Table of Contents
Al Brooks sits down for a fresh, no-fluff conversation about reading raw price action and trading it with discipline. If you don’t know him yet, Brooks is the go-to educator for intraday charts and “keep it simple” execution, and this interview cuts straight to how he actually thinks through trends, ranges, and risk in real time.
You’ll learn why Al Brooks favors simple, high-probability price reads over fancy indicators, how he times exits at channel extremes, when he scales in vs. bails fast, and why beginners should trade tiny and focus first on “stop losing money.” He also digs into practice habits, realistic expectations for AI and algos, and how to think about markets that morph from strong trends into chop—actionable ideas you can apply in your next session.
Al Brooks Playbook & Strategy: How He Actually Trades
Core Philosophy: Price Action First, Everything Else Second
Al Brooks builds every decision from the current bar and the ones just before it. He cares less about prediction and more about reading who’s winning right now—buyers or sellers—and trading alongside that pressure. The goal is consistency: simple rules applied the same way every day.
- Trade what the most recent 20–30 bars are telling you; ignore opinions that aren’t on the chart.
- Define the “Always-In” direction: if the last strong push was up and pullbacks are shallow, assume Always-In Long until proven otherwise; flip only after a clear opposite break and follow-through.
- Favor simplicity: a clean chart (open, high, low, close) on a single timeframe for execution; add higher timeframe context only if it improves clarity.
- If you’re unsure about direction, assume a trading range mindset (buy low, sell high, scalp) until a strong breakout says otherwise.
Chart Setup & Timeframe: Keep It Clean and Consistent
He keeps charts uncluttered so you can see signals quickly. One execution timeframe is enough if you can read it well; consistency beats hopping around.
- Pick one primary timeframe (e.g., 5-minute for intraday) and master its signals; only glance at the higher timeframe to mark obvious trendlines and magnets.
- Remove non-essential indicators; allow only tools that directly aid price reading (e.g., a 20-EMA as a guide to average price).
- Mark session open, prior day’s high/low, and major swing points beforehand; treat them as magnets for targets and decision points.
- Track the day’s first hour structure—early trend vs. range—because it sets expectations for the rest of the session.
Trend Identification: Strong vs. Weak, Not Just Up vs. Down
Brooks treats strength as a sequence of facts: bodies, closes near highs/lows, overlap, and pullback depth. You’re not guessing trend—you’re measuring it.
- Count overlapping bars: little overlap + closes near extremes = strong trend; heavy overlap = weak trend/range.
- Use pullback depth: shallow pullbacks (< 40% of prior swing) confirm strength; deep pullbacks (~60–80%) warn of range or reversal risk.
- Track micro-channels (several bars making new highs/lows without a meaningful counter bar); they signal urgency—fade less, go with it.
- Expect “2nd entries” (a second attempt after a small failure) to have higher odds than first attempts.
Entries: With Momentum or at Logical Pullbacks
He buys strength or buys the pullback to strength—same for shorts. The entry should make sense to both sides of the market.
- Momentum entries: enter on a breakout close if the bar is large, closes near its extreme, and follows prior building pressure; place a stop beyond the signal bar.
- Pullback entries: buy a higher-low after a bull spike; sell a lower-high after a bear spike; prefer entries near the 20-EMA or prior breakout level.
- Re-entry rule: if stopped on a good idea but the original premise returns (e.g., another strong bull close), take the re-entry with the same stop logic.
- Avoid “dead zone” entries in the middle of a range; buy near range lows on bull signals and sell near range highs on bear signals.
Exits & Targets: Let the Chart Set the Magnet
Targets don’t need to be complicated. Brooks leans on measured moves and obvious magnets that many traders watch.
- First scale: partial off at 1R or the nearest obvious magnet (prior high/low, gap fill, VWAP/EMA touch) to reduce risk.
- Measured move: project the height of the prior leg from the breakout point for swing targets; take profit as price stalls near the projection.
- Channel extremes: in trends, exit portions at the outer channel line or parabolic stall; if a strong trend resumes, keep a runner.
- Failed breakout exit: if your breakout stalls and reverses with a strong opposite close, cut quickly—assume you’re back inside a range.
Stop Placement & Trade Management: Risk First, Then Reward
He keeps risk small and consistent so the edge can show up over many trades. Stops go where the trade idea is clearly wrong.
- Place stops just beyond the signal bar/structure (e.g., 1–2 ticks beyond a swing); if that’s too wide for your risk limit, skip the trade.
- Standardize risk per trade (e.g., 0.25–0.5% of account) and size position to fit the stop distance.
- Move to breakeven only after the market proves your idea (e.g., after the first scale or a clear HL/LH forms in your direction).
- If price forms consecutive opposite strong bars against you, assume your read is wrong and flatten.
Trading Ranges: Most of the Time, Markets Chop
Brooks famously emphasizes that a lot of the day is just a range. Treat it like a business: buy low, sell high, scalp sensibly.
- Define range with two or three clear tests at the highs and lows; assume mean reversion between them.
- Buy bull setups near the bottom third of the range; sell bear setups near the top third; aim for the middle or opposite boundary for exits.
- Fade failed breakouts: if a breakout closes back inside the range, trade to the opposite side with a tight stop.
- Reduce size and expectation in ranges; scalp more, swing less, until a strong breakout with follow-through appears.
Breakouts & Follow-Through: Only the Real Ones Count
A good breakout is obvious: strong close beyond a boundary and immediate follow-through. Anything less is just noise.
- Require a strong breakout bar closing outside the range/structure and a second bar that doesn’t immediately reverse.
- Enter on breakout close or first pullback; avoid chasing a third or fourth bar unless volatility is exceptionally strong.
- If the breakout fails (closes back inside), assume the opposite edge is the target and flip bias accordingly.
- Track time of day: earlier, cleaner breakouts often lead; late-session breakouts need extra strength to trust.
Reversals: Look for Two-Leg Patterns and Climaxes
Brooks looks for evidence that one side is exhausted and the other side is taking over—usually in two tries.
- Favor “two-leg” reversals (e.g., W-bottom/M-top) with a strong signal bar in the new direction.
- Spot climactic ends: parabolic final push, huge bar after a prolonged move, or multiple consecutive strong bars into a prior magnet.
- Enter after confirmation—a strong close in the new direction or a successful retest that fails to make a new extreme.
- Put stops beyond the extreme of the second leg; target the opposite side of the most recent swing or the midline.
Scaling In & Out: Small Adds, Faster Risk Reduction
He’ll sometimes scale in when the context supports it, but only as part of a defined risk plan—not to “hope” a loser back to life.
- Scale in only within a range or during a pullback in a strong trend, never into a confirmed reversal against you.
- Pre-plan the distance and the max number of adds (e.g., up to two adds every X ticks) so total risk stays fixed.
- Use partials to pay for risk: take off size at 1R or the first magnet, then trail the remainder behind the swing structure.
- If the second add doesn’t improve average price and momentum stalls, stop averaging and tighten risk.
Reading Bars & Signal Quality: Body, Tail, Context
A single bar can be a clue; a few in a row tell a story. Read the body, the tails, and where it occurs.
- Prefer signal bars with closes near their extremes and small opposite tails; avoid dojis for entries unless fading at range edges.
- Weight the signal by location: a bull bar at range low or after a pullback in a bull trend beats the same bar in the middle of nowhere.
- Track consecutive signal attempts—second entries carry higher odds than first stabs.
- If a strong signal fails immediately, assume the opposite side has control and act fast.
Daily Routine: Prep, Execute, Review
Consistency comes from process. Brooks treats each session like reps at the gym—show up, follow the plan, review.
- Pre-market: mark key levels (prior H/L, open, obvious swings) and write a one-line bias for trend vs. range expectations.
- During market: take only A- and B-setups that match the day type; log entries, reasons, stop, and exit plan before clicking.
- Post-market: screenshot two trades (win or loss), annotate what the bars were saying, and note one improvement for tomorrow.
- Weekly: quantify results by setup type and day type; cut the bottom 20% of patterns and double down on the top ones.
Risk & Psychology: Small, Repeatable, Boring Wins
He keeps the size small enough that losses feel routine. That’s what lets the rules run the show.
- Cap daily loss (e.g., 1–2R); stop trading if hit, no exceptions.
- Start with a micro size until 20 consecutive days show you can follow the rules; then scale gradually.
- When emotions spike (tilt, FOMO, revenge), switch to observation only for the next 10–20 bars.
- Judge quality by rule-following, not P&L; profits are a side-effect of many small correct decisions.
Playbook Shortcuts (When in Doubt)
When things get fuzzy, default to the simplest, highest-quality read you can make.
- If the chart is messy, assume trading range and trade edges only.
- If you see a clear spike and shallow pullbacks, go with the spike (Always-In) and buy the first higher-low/sell the first lower-high.
- If you’re late to a move, skip; wait for the next pullback or a fresh setup at a magnet.
- If a good idea fails cleanly, exit cleanly—your next A-setup is where the edge lives.
Read the tape: trade the Always-In direction with discipline.
Al Brooks teaches a simple starting question: Who’s in control right now—buyers or sellers? The “Always-In” direction is your north star, set by the most recent strong push and confirmed by shallow pullbacks and closes near extremes. When the chart says buyers are winning, you think buy first and ignore the tempting countertrend flickers. If the tape flips with a clean opposite break and follow-through, you flip too—no ego, just read and react.
This mindset keeps you out of prediction mode and inside mechanics, which is what Al Brooks wants. You focus on the last 20–30 bars, not headlines, and you execute the next good setup in that direction. That might be a higher-low after a bull spike or a lower-high after a bear spike, with your stop tucked just beyond the structure. Stay small, stay consistent, and let the Always-In read guide you from open to close.
Size positions by volatility; keep risk tiny and consistent daily
Al Brooks keeps position size tied to market volatility, so the same bad day doesn’t become a catastrophic day. When ranges expand, he trades smaller; when ranges contract, he can size slightly bigger—always within a fixed daily risk cap. He measures the current bar range or ATR to set a logical stop distance, then sizes it so a full stop equals a small, predefined percent of equity. This keeps every trade comparable and prevents one outlier move from wrecking the week.
Al Brooks also treats risk as a budget, not a suggestion. If he hits the daily loss limit, he stops trading and protects mental capital. He avoids adding size to losers and only scales after the market proves him right. The result is a boring, repeatable routine: calculate risk from volatility, size down when things get wild, and live to take the next high-quality setup. Consistency in risk makes consistency in results possible.
Buy pullbacks, sell rallies; avoid mid-range chop and impulse.
Al Brooks frames most intraday decisions as a choice between joining strength on a pullback or fading exhaustion at a level. In a bull environment, he prefers buying higher lows near obvious magnets like the 20-EMA, prior breakout points, or the range bottom after a failed drive lower. In a bear environment, he sells lower highs into the average price or back to the broken support that flipped to resistance. He avoids entries in the dead middle of a range, where the reward is small and noise is high. Patience beats FOMO: wait for the price to test a logical level, then act when the bar actually proves your idea.
Al Brooks also stresses that not every pullback is equal—location and bar quality matter. He wants tight pullbacks in strong trends and clearer rejection wicks at range edges when conditions are choppy. If a pullback grows deep and overlapping, he downgrades the setup and expects range behavior instead of continuation. When a rally stalls at prior supply with bearish follow-through, he treats it like a fresh lower-high rather than chasing late. The routine is simple: define context, let price come to your level, and only trade when the bar confirms the story you planned.
Let mechanics beat prediction: simple setups, repeatable execution rules.
Al Brooks argues that most traders lose because they try to predict, not because their setups are bad. He favors mechanical routines: identify day type, mark magnets, read the last 20–30 bars, and only take an A- or B-quality signal that fits the context. The setup is simple—like a higher-low in a bull or a second-entry at a clear level—but the execution rules are strict and the same every day. If the bar doesn’t meet the rule, he skips it without debate.
Al Brooks also wants decisions to be pre-planned so nothing is improvised at the hard part of the trade. Entry, initial stop, first scale, and invalidation are written before the click, and he follows them even when the next bar looks scary. He judges performance by rule-following and sample size, not the outcome of one trade. When a good idea fails cleanly, he exits cleanly and looks for the next mechanical signal rather than trying to “make it back” with prediction.
Diversify by strategy and holding time, not by tickers alone.
Al Brooks points out that most traders think “diversification” means more symbols, but correlated markets can move together and sink the whole boat. He prefers variety in how you take risk: trend vs. range strategies, breakout vs. pullback entries, scalp vs. swing horizons. With this mix, one playbook can carry you when another is cold, and your equity curve depends less on a single market mood. The goal is to spread edge across different behaviors, not just different tickers.
Al Brooks also emphasizes staggering holding times to smooth returns. Run a quick scalp at the first magnet, keep a runner for measured moves, and occasionally frame a swing when the day shows exceptional strength. By predefining which portion is a scalp and which is a hold, you avoid the emotional flip-flop that ruins both. Over time, this creates real diversification: multiple strategies, multiple durations, and a more resilient P&L.
Al Brooks’ core lesson is self-reliance built on price action, not promises. He stresses that pundits don’t share timeframes, stops, or invalidation—so you can’t outsource decisions; you must read the chart yourself. If you’re trading, you’re making bar-by-bar decisions, not 10–20 year bets, which means developing the skill and confidence to act on what the market is doing now.
Risk comes first: trade tiny, let volatility dictate size, and make your first goal “stop losing money.” Use instruments like micro contracts or small FX position sizes to keep losses trivial while you build consistency; the growth comes later, after the process is solid. A fixed daily risk cap, quick exits when the premise dies, and zero ego about re-entries form the backbone of survivability.
Tactically, Brooks leans on mechanics: in strong trends, expect frequent 50% retracements and plan scale-ins deliberately, often doubling size only when the market confirms with a new bull bar and keeping the stop beneath the recent swing. The emphasis is on predefined adds, clear invalidation, and letting common market behaviors—like brief pullbacks in buy-the-close rallies—do the heavy lifting. Above all, he treats improvement as a practice: print charts, review daily, and keep getting a little better every session.
