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Reading Price Charts Bar by Bar by Al Brooks: Forex course on price action?



What is the best forex course on price action?

In this blog post I would like to mention the work of another important author regarding the price action trading. Its name is Al Brooks and the book is Reading Price Charts Bar by Bar by Al Brooks (Reading Price Charts Bar By Bar – The Technical Analysis Of Price Action For The Serious Trader (May 2009).

Al Brooks trades mainly the E-mini S&P 500 using 5 m. charts and the whole book is not written about Forex. However can you use it for Forex trading as a Forex course? I think yes, and that is because the price action as the pattern trading does not diverge. However for Forex trading it is necessary to take into account other factors as correlations and the evolution of volatility during the day. You can check another forex course for pattern trading this is another book for pattern trading, Beat the odds in Forex trading by Igor Toshchakov (l.a. Igrok). If the Igrok's method does not pay attention into the price action dynamics the method of Al Brooks is completely different. A lot of attention is paid what is going on bar by bar within the pattern. So much details are given that I get confused very often at least 3 times per page.

I find the book by Igrok much easier to put into practice and test compared to the Brook's price action analysis. I can say it is impossible to test. You have no idea if it is profitable or not. However as they say in every Forex course is that it is compared to a driving course, your teacher during the driving course has no idea if you are going to have or not a driving accident, the only thing he can do is to teach you as much as he can. So the same goes for any Forex course for price action, or whatever actually. 

So the first thing is that that is a method, where a backetesting is close to impossible.

The second thing is that everything depends on the experience. Al Brooks says that he got 10 years of practice without much success. So really it is very hard. Your price action readings may diverge quite a lot with the price action readings of the experienced trader. 

Here I would like to add that price actions is not trading without indicators. No the price bars are an indicator per se. The visualization of price action through bar charts is an indicator. 

I can say that it is the most confusing book on price action  I have ever seen. That does not mean that it is not valuable, but it is confusing. The forex course by Joe Ross is much more comprehensive. However it is stated in the head page that this book is for the serious price action trader. And that is true the forex course within this book is not for a novice trader at all.