Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader (Wiley Trading) [Hardcover]

A completely original approach to trading using price bar charts

In Reading Price Charts Bar by Bar, Al Brooks–a technical analyst for Futures magazine and an independent trader–demonstrates how the information gleaned from this method can significantly enhance trading returns, while minimizing downside risk. Written with the serious trader in mind, this book reveals how to read the information content of every bar on a price chart, and manage trades all day long. It also provides a unique understanding of how to visualize entry and exit points as markets are trading in real–time. There is an important niche in technical analysis and price action: the bar–by–bar analysis of price charts. Brooks shows readers how to take advantage of the information this approach offers, and make great trades along the way.

Al Brooks, MD (Roseville, CA), is a technical analysis contributor to Futures magazine and an independent day trader. His approach to reading price charts was developed over a 20–year period in which he changed careers from ophthalmology to trading. He graduated from the University of Chicago Pritzker School of Medicine and received his BS in mathematics with honors from Trinity College.

While complex strategies and systems maywork for some traders, understanding price action is all you really need to succeed in this arena. Price action analysis is an effective app–roach to trading today′s markets—whether you′re involved in stocks, futures, or options. It allows you to focus on the process of trading without being overwhelmed by a complicated collection of trading techniques. And while this method may appear elementary, it can sig–nificantly enhance returns as well as minimize downside risk.

One way to apply price action analysis to your trading endeavors is with chart patterns. Nobody understands this better than author Al Brooks, a technical analyst for Futures magazine and an independent trader for more than twenty years. Brooks discovered ten years ago that reading price charts without indicators proved to be the most simple, reliable, and profitable way for him to trade. Mastering that discipline is what made him consistently successful in trading. Now, with Reading Price Charts Bar by Bar, Brooks shares his extensive experience on how to read price action.

At the end of the day, anyone can look at a chart, whether it is a candle chart for E–mini S&P 500 futures trading or a bar chart for stock trading, and see very clear entry and exit points. But doing this in real time is much more difficult. Reading Price Charts Bar by Bar will help youbecome proficient in the practice of reading price action—through the use of trendlines and trend channel lines, prior highs and lows, break–outs and failed breakouts, and other tools—and show you how this approach can improve the overall risk–reward ratio of your trades.

Written with the serious trader in mind, this reliable resource addresses the essential elements of this discipline, including the importance of understanding every bar on a price chart, why particular patterns are reliable setups for trades, and how to locate entry and exit points as markets are trading in real time. Brooks focuses on five–minute candle charts to illustrate basic principles, but discusses daily and weekly charts as well. Along the way, he also explores intraday swing trades on several stocks and details option purchases based on daily charts—revealing how using price action alone can be the basis for this type of trading.

There′s no easy way to trade, but if you learn to read price charts, find reliable patterns, and get a feel for the market and time frame that suits your situation, you can make money. While price action trading doesn′t require sophisticated software or an abundance of indicators, this straightforward approach can still put you in a better position to profit in almost any market. Reading Price Charts Bar by Bar will show you how.