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In this interview, price action legend Al Brooks sits down for a follow-up conversation about how he really trades and why his approach has stayed consistent for decades. From his unusual path—eye surgeon to full-time day trader—to his daily routine in the E-mini S&P and options, Brooks explains why markets rhyme across timeframes and instruments and why objectivity beats prediction. You’ll hear clear, practical language on reading bull/bear forces bar by bar, staying calm under pressure, and letting math—not hope—drive decisions.
Read on to learn the core of Brooks’ strategy: focus on a small set of repeatable price patterns (he loves wedges), structure trades so the reward is at least 2–3x the risk, and be patient enough to let probability do the heavy lifting. We’ll unpack how Al sizes down so he can think clearly, when he switches between scalps and swings, and why “trust the math” is the mindset that keeps him consistent. If you’re a beginner or a frustrated intermediate trader, this piece will show you how to simplify your chart reading, choose higher-quality entries, and stop micromanaging winners before they have a chance to run.
Al Brooks Playbook & Strategy: How He Actually Trades
Core Philosophy: Trade What the Bars Are Saying
Al Brooks is known for making decisions one bar at a time. The idea is simple: every bar reveals a tug-of-war between bulls and bears, and your job is to side with the team that’s winning right now. Expect lots of trading ranges, imperfect trends, and second chances—so you don’t need to predict, just read.
- Trade the “always-in” direction: if the most recent strong move was bullish and hasn’t clearly failed, look for long setups; if bearish, look for shorts.
- Assume most breakouts fail; wait for a follow-through bar to confirm strength before chasing.
- Expect two-legged moves: after a push, anticipate a pullback and a second attempt before big reversals.
- When in doubt, reduce size and assume a trading range until a strong breakout with follow-through changes the regime.
Chart Setup & Markets: Keep It Clean, Keep It Liquid
Brooks keeps charts minimal and focuses on highly liquid instruments where price action reads clean—think E-mini S&P, major index futures, FX majors, and big-cap stocks/ETFs. A fast timeframe sharpens feedback, but the same logic applies to higher timeframes.
- Use a clean chart with a 20-period EMA and simple trendlines/channels—no clutter.
- Default to a 5-minute chart for index futures; for stocks/FX, use the shortest timeframe that’s liquid and not too noisy.
- Mark the prior day’s high/low, session open, and obvious swing points—those are magnets.
- Track the first hour: opening swings reveal day type (trend day, range, or trending-range).
Pattern Edge: Wedges, Double Tops/Bottoms, and Breakout Tests
You don’t need dozens of patterns. Brooks leans on a small, repeatable set that shows exhaustion (wedges), failed attempts (double tops/bottoms), and tests of breakout points. These patterns anchor entries with logical stops and measured targets.
- Wedge rules: look for three pushes against the trend with diminishing momentum; fade the final push with a stop beyond the wedge extreme.
- Double top/bottom: enter on the second test when it stalls; stop beyond the prior swing; target the midpoint of the range, then the opposite extreme.
- Breakout test: after a breakout, trade the pullback to the breakout area; enter in the breakout’s direction if buyers/sellers defend it.
- Measured move: project the height of the prior swing/range from the breakout point to set realistic profit targets.
Entries: Let the Signal Bar Do the Heavy Lifting
Entry quality comes from the signal bar and its context. You want a clear body, the right location (at a pullback or test), and follow-through. If it’s messy or late, pass—opportunity cost is lower than a bad fill.
- Buy pullbacks in bull trends on a bull signal bar closing near its high; sell rallies in bear trends on a bear signal bar closing near its low.
- Enter stop orders above/below the signal bar to let price confirm; avoid market orders in chop.
- Favor second entries (e.g., a second pullback) after the first attempt failed—probabilities are better.
- Skip weak signals: small bodies, large tails against your direction, or entries far from the EMA.
Stops & Exits: Math First, Ego Never
Brooks places stops where the premise is invalidated—usually beyond the signal bar or structure you’re trading. Profit taking is rules-driven: partials at logical magnets, leave a runner for the measured move, and don’t turn a scalp into a swing mid-trade.
- Initial stop: beyond the signal bar or the recent swing (use the tighter of the two that still makes sense).
- First target: next magnet (prior H/L, EMA touch, range midpoint) or a fixed multiple like +1R for scalps.
- Runner logic: after +1R, scale out 50–70% and trail the remainder below/above higher lows/highs or a channel line.
- If the bar after entry is a strong opposite close, consider an immediate scratch—assume your read was early.
Risk & Position Sizing: Stay Small, Trade Better
The edge is statistical, not psychic. Keep risk small enough to execute the next setup without emotion. Brooks prioritizes consistent execution over big size, especially in ranges where win rates are lower but frequent.
- Risk a fixed fraction per trade (e.g., 0.25–0.5% of account); reduce size in choppy sessions.
- Cap daily loss at 2–3R; if hit, stop trading for the day.
- Do not widen stops; cut size instead if volatility expands.
- Avoid adding to losers; scale in only by plan (see next section) with defined maximum exposure.
Scaling In (Advanced): Only With Structure
Brooks sometimes scales into trades when the structure supports it—particularly inside ranges where mean-reversion is common. This is not averaging down blindly; it’s entering at predefined edges with a unified, smaller average price.
- Pre-plan a two-unit entry at range extremes: first at the signal, second closer to the edge if price tests it.
- Use one unified stop beyond the range extreme; total risk must still fit your per-trade limit.
- Exit the add-on at the range midpoint; hold the original unit for the opposite side or a measured move.
- Do not scale during trend accelerations—only at clear, sideways structures.
Day Types & Play Selection: Identify the Arena First
Knowing the day type simplifies decisions. Trend days reward pullback entries; trading ranges reward fading edges; trending-ranges blend both. Decide the arena before you pick the play.
- Trend day tells: strong open drive with shallow pullbacks, stacked closes, and EMA acting as dynamic support/resistance—buy pullbacks/sell rallies only.
- Range day tells: overlapping bars, tails on both ends, frequent reversals at prior highs/lows—fade extremes and take quick profits.
- Trending-range: directional bias but with broad swings—enter with the bias, exit at swing targets rather than trail aggressively.
- If you misclassify, downshift size, or go flat,t and reassess after the next leg.
The 20-EMA and Micro Trendlines: Structure Without Clutter
A single moving average and quick hand-drawn lines help define momentum and channel behavior without drowning you in indicators. They also give clear anchors for entries, stops, and targets.
- In trends, buy/sell around the 20-EMA when signal bars align with the “always-in” direction.
- Draw micro trendlines over pullbacks; a break of the line plus a good signal bar is your trigger.
- Channels: entries near the channel line are late—prefer early pullbacks toward the EMA or a failed breakout against the channel.
- If bars spend a long time straddling the EMA with overlap, treat the market as a range and switch playbook.
Multi-Timeframe Read: One Story, Different Zoom Levels
Higher timeframes set magnets and bias; lower timeframes give entries. The key is not to over-fit—use one higher frame to set context and one execution frame to act.
- Pick a context frame 3–5x slower than your entry frame (e.g., 30-min context for 5-min entries).
- Trade in the direction of the higher-timeframe breakout or failed breakout unless your entry frame shows a strong reversal.
- Use higher-timeframe swings and measured moves as targets for your entry-timeframe runners.
- If the frames disagree, cut risk and wait for alignment or a fresh breakout test.
Session Tactics for Index Futures: Open Through Lunch
Open to lunch is where most structure forms; afternoons often complete measured moves or reverse tired trends. Your play selection should evolve with the session.
- First 30 minutes: classify day type; take only A-setups with a smaller size until bias is clear.
- Mid-morning: favor second entries and breakout tests; ranges become more defined.
- Lunch hour: expect slower follow-through; tighten profit targets or skip until momentum returns.
- Last hour: look for measured-move completions or late breakouts with follow-through; avoid revenge trades if you’re down.
Psychology & Execution: Behave Like a Statistician
Brooks’ edge comes from repeating small advantages and letting math work over many trades. Confidence comes from rules and reps, not predictions.
- Pre-commit: write your entry, stop, and target before placing the order; no changes after entry unless rule-based.
- Limit screen-time tilt: two consecutive errors (rule breaks) = step away for 15–30 minutes.
- Track process metrics (A-setup frequency taken, rule adherence) alongside P&L—pay yourself in points for following rules.
- Review five trades nightly: Was the context correct? Was the signal bar clean? Did exits follow the plan?
Journaling & Stats: Turn Bars into Probabilities
A small set of patterns traded consistently yields enough data to refine win rates, stop placement, and targets. Make your review as mechanical as your entries.
- Tag each trade by pattern (wedge, DT/DB, breakout test), day type, and trend state (always-in long/short/range).
- Record signal bar characteristics (body % vs. range, tails) and whether entry was a first or second attempt.
- Track R-multiple outcomes and heat (maximum adverse excursion) to optimize stops and partials.
- Drop or modify any pattern that doesn’t produce a positive expectancy after 50–100 samples under your rules.
Size Risk First: Trade Small Enough To Execute Flawlessly
Al Brooks hammers one idea before everything else: size small so you can think clearly. If your position makes you sweat, it’s already too big, and your process will crack. Start with a fixed fraction of equity or a fixed dollar risk per trade, then let the setup—not your ego—determine the stop. When your risk is pre-defined and tiny, following rules becomes easy and repeatable.
Brooks also ties size to volatility, so the same setup feels the same on wild and quiet days. If the stop needs to be wider, he cuts contracts; if the stop can be tight, he scales back up—never the other way around. He caps daily loss in R-multiples and steps aside when that line is hit, protecting the next session’s confidence. With that discipline, Al Brooks keeps execution clean, decisions unemotional, and the math working in his favor.
Read Bars, Not Crystal Balls: Mechanics Beat Prediction
Al Brooks teaches that every bar is a vote, not a prophecy. He reads bodies, tails, and follow-through to decide if bulls or bears have the upper hand right now. If the close is strong and near the high after a pullback, he favors longs; if it closes weak near the low in a bounce, he leans short. The focus is “always-in” direction and the quality of the next bar, not a grand macro call.
He looks for second entries because the market often needs two tries before moving. If a breakout lacks follow-through, he assumes a range and stands down or fades edges with tight stops. Al Brooks keeps decisions mechanical: enter on the signal bar break, stop beyond the signal, take profits at logical magnets, scratch quickly if the next bar contradicts the idea. Prediction is optional; execution on clear bar information is mandatory.
Ride Trends, Fade Ranges: Use Wedges, Double Tests, Magnets
Al Brooks starts by deciding if the market is trending or stuck in a range. In trends, he buys pullbacks or sells rallies and avoids countertrend trades until a strong opposite signal appears. In ranges, he fades edges with tight stops, quick partials, and realistic expectations. Wedges at the end of a move often flag exhaustion and open the door for a reversal or deeper pullback.
Double tests—classic double tops or bottoms—are his favorite second-chance entries because the market often needs two tries. He uses “magnets” like prior highs/lows, the session open, measured-move targets, and the 20 EMA to plan exits. The execution is simple: trigger on the break of a clean signal bar, place the stop beyond the structure, take first profits at the nearest magnet, and leave a small runner. If follow-through is weak or the pattern fails, Al Brooks cuts the trade quickly and waits for a clearer read.
Diversify By Instrument, Strategy, And Holding Duration For Stability
Al Brooks keeps his core read the same but spreads risk so one market or tactic can’t wreck the day. He focuses on liquid instruments first, then mixes uncorrelated plays—index futures, a major FX pair, maybe a mega-cap stock or ETF—so not everything moves off the same headline. He also diversifies by strategy type: trend pullbacks for directional edge, range fades for mean reversion, and occasional breakout tests when momentum is undeniable. This way, when trends stall, the range setups still pay, and when ranges break, the breakout plan takes over.
He adds one more lever—time—by varying holding duration from quick scalps to measured-move runners. Smaller size on runners keeps emotions in check while giving upside when a clean sequence appears. If volatility spikes, he rotates to the calmer product or shifts from swings to scalps until conditions normalize. That blend lets Al Brooks stay active without forcing trades, keeping the equity curve steadier across sessions.
Define Risk, Plan Exits: Volatility-Based Targets And Measured Moves
Al Brooks builds every trade backward from the exit. He defines the invalidation point first, sizes the position to that distance, and only then looks for the trigger. Targets are mapped to “magnets” like prior highs/lows, range midpoints, and measured moves, so there’s no improvising mid-trade. If volatility expands, he widens the stop to a sane structure and cuts size so the dollar risk stays constant. A clean +1R partial comes off quickly; the runner aims for a measured move projected from the prior swing or range.
When momentum fades or a strong opposite bar prints, Brooks won’t hesitate to scratch or take profits early—protecting expectancy beats marrying a target. He trails runners behind higher lows/lower highs or a channel line instead of inching the stop randomly. On chop days, he tightens objectives and takes singles; on trend days, he lets the runner breathe to catch the move. The rule is simple but strict: plan exits before entry, obey the plan after entry. That’s how Al Brooks keeps winners organized and losers small.
Al Brooks’ message lands the same no matter where you are on the curve: keep risk tiny, read the bars, and let math—not opinions—run the show. He treats every session like a fresh probability puzzle, starting with “always-in” direction, then filtering for simple structures—pullbacks in trends, fades at range edges, and second attempts after the market’s first try stalls. Wedges and double tests aren’t magic; they’re just reliable ways to spot exhaustion and commitment, with stops where the idea is clearly wrong and targets mapped to magnets like prior highs/lows, the EMA touch, range midpoints, and measured moves. When volatility stretches stop, he cuts size; when momentum is thin, he scalps; when conditions open up, he lets a small runner chase the measured move.
What makes it work is the discipline around execution. Al Brooks keeps charts clean, uses one or two timeframes to tell one story, and adapts to day type instead of forcing trades. He scales only with structure, caps daily damage in R, and treats a quick scratch as a win for process. The review loop closes the edge: tag patterns, record heat and outcomes, and lean harder into what’s actually paying. If you boil it all down, his playbook is refreshingly simple: small risk, clean context, high-quality signal bars, predefined exits, and relentless consistency over many trades. That’s how you trade without drama—and let the probabilities compound.
