Brooks Trading Course
Charting Analysis
# | Video Title |
08A |
Candles, Setups, and Signal BarsTrend bars and TR bars Signal bars and entry bars Bad signal bars |
08B |
Reversal barsMulti bar reversals Inside and outside bars |
08C | Tight Trading Ranges as setups
ii and Breakout Mode |
08D | What is a setup?
Weak setup, need more 2nd signal Countertrend needs strong signal bar |
09A |
Pullbacks and Bar CountingWhat is a pullback? What is bar counting? |
09B | Double Top Bear Flags, and Double Bottom Bull Flags
High 4 and Low 4 Consecutive reversals |
09C | Endless pullback
Higher and lower time frames Countertrend traders exit on High or Low 2 |
10A |
Buying and Selling PressureWhat is Buying and Selling Pressure? Gaps |
10B |
Trading RangesChannels |
11A |
GapsWhat are gaps? |
11B |
Moving Average Gap BarsExhaustion Gap |
11C |
Micro gapsGap Open Bars Gaps mean strength Body Gap (Negative gap) |
11D |
Gaps often lead to trendsStairs |
Market Cycle
12A |
Market CycleFour parts of market cycle? Pullback is start of channelChannel becomes Trading Range |
12B |
Market cycle: always trend or TRInertia and 80% rule Definitions 1: Trends, swings, legs |
12C |
Definitions 2: PullbacksDefinitions 3: Trading Range Binary decisions |
13A |
Always InAlways trend or TR Always In directionTrader’s Equation |
13B |
Always In LongAlways In Short |
13C |
Scalping and swing trading |
14A |
TrendsWhat is a trend? Bull trend needs Higher LowsBear trend needs Lower Highs |
14B |
When not clear, then TRBreakout is strongest trend 80% rule: Most reversals fail |
14C |
Types of trendsBull and bear trends Traps and breakouts |
14D |
Trend from the OpenTrending Trading Ranges Broad Channel trend |
14E |
Tight ChannelSmall pullback trend |
15A |
BreakoutsWhat is a breakout? 80% rule: Most breakouts failReversal is a breakoutTrading Range means BLSHS! |
15B |
Need follow-throughTrends always try to reverse Breakout can begin small |
15C |
Breakout usually has 2nd legTrading Range breakouts |
15D |
2nd Leg TrapsSigns of strong breakouts Succeed or reverse? |
15E |
Exhaustion or Measuring Gap?Weaker BO has deeper PB BO Test |
15F |
Failed BO, trend resumption or reversal? |
15G |
5 tick traps and 11 pip trapsFade weak setups |
15H |
Surprise Bars2nd Leg Traps and exhaustion Give-up Bars – Minor reversal |
16A |
ChannelsChannel is 2 lines Lines need 2 points70% Rule |
16B |
How to draw channelsForex bear channel examples Emini bull channel examples |
16C |
New trend begins in old trendHigher time frames Reversals and breakouts |
16D |
Types of channelsTight and Broad Bull Channels Tight and Broad Bear Channels |
16E |
Evolution into Trading RangeChannel breakouts usually fail With trend BO of channel |
16F |
Limit orders to fade test of lineBreakouts at start of trend Reversals and breakout failures Broad channel or Trading Range (TR)? Every TR has bull and bear channel |
17A |
Tight Channels & Micro ChannelsWhat is a Tight Channel? What is a Micro Channel? |
17B |
Tight Trading RangesBreakout or climax? |
18A |
Trading RangesDefinition of pullback and Trading Range Hallmarks: confusion, disappointment |
18B | TR contains buy and sell setups
BOM (BreakOut Mode) 2nd Leg Trap |
18C | Trend resumption, or reversal?
Trend, or leg in TR? |
18D | Tight Trading Range (TTR)
Ledges Limit Order Market (LOM) |
18E | What is vacuum effect?
Perverse logic: Fade BO |
18F | Trading Range: Don’t bet on breakout
Breakout into trend Early signs of TR |
Support, Resistance, and Basic Patterns
19A |
Support and ResistanceWhat is support and resistance (S/R)? S/R, not news, controls price Monthly charts need monthly stops S/R is usually precise |
19B | What S/R is best?
Forex S/R not precise Examples |
19C | Other Types of S/R
Round Numbers List of S/R |
19D | Buy The Close, Sell The Close
Breakout (BO) Test |
19E | Highest and lowest close
Bulls need HL, bears need LH 50% Pullback |
20A |
Measured MovesLeg 1 = Leg 2 |
20B | Height of Trading Range
Height of breakout |
21A |
ReversalsWhat is a reversal Minor and Major Trend Reversals Reversals can begin with breakouts |
21B | Reversal is earliest entry
80% rule Cup and Handle |
21C | Beginners love reversals
Buying and Selling Pressure Nested pattern |
21D | 40% winner
Ten Bars, Two Legs (TBTL) Most reversals are Double Top or Bottom |
22A |
Major Trend ReversalsWhat are major and minor reversals? MTR is most important reversal pattern |
22B | Successful LH MTR |
22C | MAG (Moving Average Gap bar)
Most tops are Double Tops |
22D | MTR bottoms
Head and shoulders reversals Failed MTR |
23A |
Final FlagsWhat is a Final Flag? |
23B | Small Final Flags
ii Final Flags |
24A |
WedgesWhat is a Wedge? How to draw lines |
24B | Wedges rarely perfect
Most channels are Wedges Wedge variations |
24C | Bad Wedges are not reversal setups
Reversal begins before old trend ends Earlier entry on smaller time frame |
24D | What is a parabolic Wedge?
Strong trends have bad Wedges |
24E | Failed Wedge |
25A |
Double Tops and BottomsWhat is a Double Top or Bottom? Why Double Tops and Bottoms work Double Top and Bottom Flags |
25B | Tests of support and resistance
Failed Double Tops and Bottoms Measured Moves |
26A |
TrianglesTriangle Wedge Reversal or continuation (flag) |
26B | Expanding Triangle
Bad looking patterns |
27A |
Head and ShouldersHead and Shoulders is MTR Most Head and Shoulder reversals are minor |
27B | Markets resist change
What happens when stop is hit? |
28 |
Rounded Tops and BottomsAlways something else |
29A |
ClimaxesWhat is a climax? |
29B | V tops and bottoms |
29C | Climactic reversals
Gaps: Exhaustion, Measuring |
29D | Consecutive climaxes |
29E | Climaxes caused by options firms
Failed consecutive climaxes |