Table of Contents
This interview features Al Brooks—yes, the price-action legend—walking through how he reads charts, why institutions (not headlines) drive moves, and how that should change your trading decisions. He explains why markets often grind sideways after big rallies, why picking the “final high” is a fool’s game, and how a simple, rules-based approach beats chasing media narratives. It’s direct, practical, and refreshingly no-nonsense from someone who has spent decades in the screens.
You’ll learn the core of Brooks’ strategy: focus on price action across timeframes, ignore TV “experts,” and anchor decisions to clear patterns like wedges, double bottoms/tops, and breakouts that actually tilt probability. He lays out where most traders can find the sweet spot (think five- to fifteen-minute charts), how to manage risk with protective stops and add-ons, and why probabilities live in a 40–60% band—so trade management matters more than prediction. If you want a beginner-friendly way to trade like an adult in adult markets, this is the blueprint.
Al Brooks Playbook & Strategy: How He Actually Trades
Price Action First: How Al Frames Every Decision
Al Brooks keeps it simple: price is the only truth. He reads bars, context, and crowd behavior to decide whether the market is trending, pausing, or reversing. This section shows how he defines the backdrop before taking any risk.
- Define the day in the first 30–60 minutes: trending, trading range, or breakout mode; trade only the behavior you see.
- Mark the prior day’s high/low, open, and the session open; expect reactions there.
- Assume probabilities cluster around 40–60%; edge is real but small—trade management must do the heavy lifting.
- Favor clear signal bars (strong closes, small tails) aligned with context; pass on ambiguity.
Chart Setup & Timeframes: Keep It Clean and Consistent
He avoids clutter. A basic chart with a few moving averages and measured-move tools is enough. The goal is speed: recognize patterns in seconds and act.
- Use a primary intraday timeframe (e.g., 5-minute) and one higher frame (e.g., 30- or 60-minute) for context; avoid hopping around.
- Keep indicators minimal: one or two MAs (e.g., 20-EMA and 50-EMA) as dynamic support/resistance and trend guides.
- Draw only essential lines: trendlines, channels, prior session levels, and obvious ranges; delete the rest as the day evolves.
- Recalculate measured moves from clear legs (swing high to low) to project targets objectively.
“Always-In” Bias: Trade With the Dominant Side
Brooks tracks who’s in control—buyers or sellers—and rides that side until evidence flips. This prevents fighting the tape and getting chopped up by random countertrades.
- Decide the “always-in” direction after the open (e.g., strong bull bars with follow-through → always-in long).
- Stay with the bias while pullbacks hold above/below the 20-EMA and breakouts get follow-through.
- Flip only after a credible reversal: two-sided buying/selling pressure, micro-double top/bottom, or a failed breakout with strong opposite close.
- If bias is unclear, trade smaller or switch to range tactics until clarity returns.
Trend Entries: Breakouts and Second Chances
He prefers straightforward entries that align with momentum and the dominant side. Second entries (“second attempts”) matter because conviction increases when the market tries twice.
- Buy stop one tick above a strong bull signal bar in a bull trend; sell stop one tick below a strong bear signal bar in a bear trend.
- Prioritize second entries after a shallow pullback; they have better follow-through than first attempts.
- Enter on breakouts from tight bull/bear channels when the prior bars have strong closes and small tails.
- Skip late entries far from the 20-EMA; wait for a pullback to avoid buying the high or selling the low.
Pullbacks: Simple Rules That Compound Edge
Pullbacks are where most of his trades happen. They’re cleaner, cheaper, and put you on the right side if the trend resumes.
- In a bull trend, buy pullbacks that form higher lows near the 20-EMA and show a bull reversal bar with a close near the high.
- In a bear trend, sell pullbacks that form lower highs near the 20-EMA and show a bear reversal bar with a close near the low.
- Be strict about the signal bar: a small body, long opposite tail is weaker; a big body, close to breakout side is stronger.
- If the pullback goes beyond the prior swing pivot, treat it as a possible trend change—trade smaller or wait for a second entry.
Trading Ranges: Buy Low, Sell High, Expect Disappointment
Most sessions spend time in ranges. Brooks treats ranges like mean-reversion arenas where quick profits beat big dreams. He expects failed breakouts and plans for them.
- Identify the range with at least two tests of highs and lows; fade near the extremes with tight profit targets.
- Only fade if signal bars show tail rejection at the edge; otherwise, stand down.
- Expect breakouts to fail; enter on the failed breakout back into the range with the target at the midline or opposite edge.
- Reduce size when the range is tight; widen stops slightly and shorten profit targets.
Wedges, Double Tops/Bottoms, and Micro Patterns
He loves “second tries” and crowd hesitation. Wedges and doubles show exhaustion and can flip control. Micro versions carry weight intraday.
- Short a wedge top in a tired bull leg if the third push shows weaker closes and long upper tails; stop above the wedge high.
- Buy a wedge bottom in a tired bear leg if the third push shows weaker closes and long lower tails; stop below the wedge low.
- Trade double tops/bottoms only if the second test shows a strong opposite close and the context supports a turn (e.g., at resistance/support).
- Treat micro double tops/bottoms on the main timeframe like larger patterns; they often launch the next leg.
Risk Management: Small Losses, Bounded Adds, No Heroics
His edge compounds through tight risk and unemotional exits. He budgets risk first, then hunts entries that fit it—never the other way around.
- Risk a small fixed percent per trade (e.g., 0.25%–0.50%); size positions so the stop is beyond the signal bar or structure (e.g., a tick beyond high/low).
- Use a maximum of two entries per idea: initial entry plus one add-on only if the context stays valid and the stop can remain logical.
- In ranges, consider a smaller size and quicker exits; in trends, allow more room for swings but keep the initial stop firm.
- If the setup degrades (opposite strong close, loss of structure), exit first and analyze later.
Trade Management: Exits, Targets, and Measured Moves
Brooks believes management eclipses prediction. He locks wins quickly when the market is likely to stall and lets winners expand only when the tape is clearly strong.
- For scalps in ranges, target 1:1 to the midline or recent swing; take quick partials and flatten at obvious barriers.
- In trends, scale out at measured-move projections or channel lines; trail behind higher lows/lower highs or the 20-EMA.
- Move stop to breakeven after the market moves at least 1R and structure remains intact; don’t do it early in choppy tape.
- If a breakout accelerates with consecutive strong closes, hold a runner; if momentum stalls, take the gift and reset.
Failed Breakouts: The Fastest Money When You’re Ready
Failed moves can be explosive because trapped traders must exit. Brooks plans for both the breakout and the failure, then acts without hesitation.
- If a breakout bar has a big tail and no follow-through, look for a stop-entry in the opposite direction back into the prior range.
- Place a stop beyond the failure bar; target the opposite side of the range or a measured move from the failure leg.
- Avoid countering strong consecutive closes with rising volume and tight follow-through; wait for the actual failure bar first.
- After a failure, expect at least two legs; take partials after leg one and manage the second for the bigger target.
Open, Midday, Close: Three Distinct Games
He treats the session like three mini-markets. The open sets bias, midday demands patience, and the close can trend aggressively.
- First hour: identify bias, volatility, and range boundaries; take A-setups only and let the market reveal itself.
- Midday: reduce frequency; trade only clean pullbacks or range fades with clear signal bars.
- Last hour: expect either trend resumption or sharp reversals; tighten risk and prioritize with-bias trades.
Playbook for News and Surprises: Price Over Narrative
Even on news days, he lets bars lead. The crowd’s reaction—not the headline—creates the trade.
- If a news spike forms a strong breakout with follow-through, trade with it; if it’s a spike-and-fade, trade the failure back into prior structure.
- Keep stops logical and small; don’t widen just because volatility jumped—reduce size instead.
- Reset levels quickly after the spike; yesterday’s levels may be less relevant than the new impulse legs and ranges.
Daily Review and Iteration: Build Pattern Memory
Brooks treats every session as data for the next one. He journals patterns, entries, and management so repetition turns into reflex.
- Screenshot A-setups, entries, exits, and context; tag them as trend, range, breakout, or failure.
- Track stats by setup: win rate, average R, maximum adverse excursion; drop or tweak what underperforms.
- Create a pre-market checklist (levels, bias, scenarios) and a post-market checklist (what worked, what didn’t, improvements for tomorrow).
Price Action Over Prediction: Let Mechanics Drive Every Decision
Al Brooks teaches that price action is the only objective input you control, and your mechanics—entries, stops, and exits—turn that input into repeatable trades. Whenever you’re tempted to “guess” direction, step back and let the bar-by-bar story decide whether you’re in a trend or a range. If the bars say trend, trade with it; if they say range, fade edges—no forecasts needed.
Mechanics keep you honest because they’re testable: clear signal bar, predefined stop, measured target, and an if-then plan for follow-through or failure. Setups only matter if you can size them small, survive the inevitable losers, and let winners pay for the noise. Keep the edge simple—40–60% probabilities plus consistent trade management—so your results come from repetition, not luck. When the tape changes character, your mechanical rules change your actions automatically, while predictions stay stubborn. That’s the Al Brooks difference: disciplined execution that lets price, not your ego, run the show.
Risk Small, Risk Often: Tight Stops and Sized Entries
Al Brooks hammers one idea: tiny risk keeps you in the game long enough for probability to work. He sizes positions so a normal stop—just beyond the signal bar or recent swing—costs very little relative to the account. That lets him take the next valid setup without emotional baggage, because a single loser doesn’t matter. He’d rather have ten small, clean attempts than one oversized “conviction” trade that wrecks the week.
Risking small also clarifies execution: Al Brooks defines the dollar risk first, then fits the share/contract size to that stop, not the other way around. If volatility expands, he shrinks the size and keeps the stop logical instead of widening it arbitrarily. He limits second attempts to when the context still favors the same side; if the second try fails, he stands down. A daily loss cap ends the session before frustration compounds. With this discipline, tight stops and modest sizing turn a 40–60% edge into steady progress instead of account swings.
Diversify By Timeframe, Setup, and Duration To Smooth Equity
Al Brooks makes diversification practical: don’t just spread across symbols—spread across how and when you take risk. He mixes intraday entries on a 5-minute chart with context from a higher timeframe so one choppy window doesn’t dictate the whole day. He rotates between trend pullbacks, failed breakouts, and range fades because different conditions pay at different times. That way, when one playbook cools off, another is warming up.
Duration matters too. Al Brooks will scalp partials at logical intraday targets while holding a runner for measured moves when momentum stays clean. He staggers exits—some at 1R, some at structure—to reduce P&L whiplash. If volatility expands, he trims size and stretches targets; if it contracts, he tightens targets and takes quicker partials. Diversifying by timeframe, setup, and hold time turns a lumpy equity curve into a steadier climb without chasing more leverage.
Trade the Trend, Fade the Range With Clear Rules
Al Brooks keeps it binary: if the market is trending, go with it; if it’s ranging, fade edges and take quick profits. In trends, he buys pullbacks that hold above the 20-EMA in bull moves and sells rallies that stall below it in bear moves. He prioritizes strong signal bars with closes near the extreme and enters on stops one tick beyond the signal. Late trend entries far from the moving average are skipped; he waits for the market to come to him.
In ranges, Al Brooks trades like a realist: buy near the bottom, sell near the top, and expect breakouts to disappoint. He looks for tails and rejection at the edges, targets the midline first, and only aims for the opposite edge if momentum confirms. If a breakout actually gets follow-through, he flips to trend tactics instead of fighting it. No guessing—just a rule set that changes with the tape.
Volatility-Based Targets and Exits: Manage Winners, Cut Losers Fast
Al Brooks treats volatility as the metronome for exits—bigger bars mean bigger room and bigger targets, smaller bars mean tighter everything. He’ll project measured moves from impulse legs and anchor profit objectives to the recent average bar size, so targets aren’t fantasy. As a position moves at least 1R, he often scales a portion and tightens risk, letting the tape decide if a runner survives. When momentum pauses at an obvious level, he cashes the gift rather than hoping for a miracle.
On the losing side, Al Brooks is ruthless: stops live just beyond the signal bar or key structure and doesn’t get widened. If the market invalidates the setup—opposite strong close or failed follow-through—he’s out and looking for the next clean read. In choppy sessions, he shortens targets and uses time stops; if price drifts without progress, he exits and resets. When volatility expands, he reduces the size instead of inflating the stop, keeping risk per trade constant. Trailing stops ride behind higher lows or lower highs in trends, but if momentum dies, he takes profits and lets the next setup earn a re-entry.
Al Brooks’ bottom line is simple and repeatable: read the bars, define the context, and let mechanics—not predictions—drive every action. He treats markets as a tug-of-war run by institutions, so he watches how price behaves around obvious places: prior highs/lows, moving averages, channels, and breakout levels. Trends get pullback entries with tight, logical stops; ranges get fades near the edges with quick, realistic targets. Patterns like wedges and double tops/bottoms matter because they reveal exhaustion and second-attempt dynamics, but only when the signal bar and surrounding context actually tilt probability.
Risk is the lever that makes all of this work. Brooks’s sizes are so small that a normal stop—often just beyond the signal bar or structure—costs little, allowing him to take the next A-setup without hesitation. He assumes edges live in the 40–60% band, so trade management must carry the load: partials at measured objectives, runners when momentum is clean, and fast exits when the tape says “no.” Whether it’s equities, indexes, or crypto, the framework doesn’t change: price action first, small risk, disciplined execution, and clear rules for when to press, when to pass, and when to flip.
