{"id":117543,"date":"2021-06-20T04:30:23","date_gmt":"2021-06-20T11:30:23","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=117543"},"modified":"2024-09-07T00:37:49","modified_gmt":"2024-09-07T07:37:49","slug":"5-steps-to-finding-todays-trades","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/trading-strategies\/5-steps-to-finding-todays-trades\/","title":{"rendered":"5 Steps to finding today&#8217;s trades"},"content":{"rendered":"\n<div style=\"position:relative;padding-top:56.25%;\"><iframe src=\"https:\/\/iframe.mediadelivery.net\/embed\/156715\/ac6bef19-30e2-41e9-8a0f-afc7462629da?autoplay=false&#038;loop=false&#038;muted=false&#038;preload=true&#038;responsive=true\" loading=\"lazy\" style=\"border:0;position:absolute;top:0;height:100%;width:100%;\" allow=\"accelerometer;gyroscope;autoplay;encrypted-media;picture-in-picture;\" allowfullscreen=\"true\"><\/iframe><\/div>\n\n\n\n&nbsp;\n\n\n\n<p><em>Video duration 29min 21sec.<\/em><\/p>\n\n\n\n<p>Download: <a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/09\/Al-Brooks-Daily-Blog-PPT-Objects.zip\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Al Brooks&#8217;s Daily Setups Powerpoint Objects (3MB ZIP File)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5 Steps to finding today&#8217;s trades &#8212; Video transcript<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction<\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/5-Steps-to-Finding-Todays-Trades.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"192\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/5-Steps-to-Finding-Todays-Trades.jpg\" alt=\"5 Steps to Finding Today&#039;s Trades\" class=\"wp-image-117547\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/5-Steps-to-Finding-Todays-Trades.jpg 340w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/5-Steps-to-Finding-Todays-Trades-300x169.jpg 300w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p>Hi, I\u2019m Al Brooks. Thank you for watching this video. I want to share with you today an approach that I\u2019ve had for more than three decades. At the end of every day, I look at my chart and I mark it up. I draw lines on it. I think about possible entries, possible exits, how to manage trades.<\/p>\n\n\n\n<p>What I\u2019m trying to do is recognize patterns so that when I see them tomorrow or next week or next month, real time, I can anticipate what will follow and I can structure a trade and then manage my trade successfully. I have the same routine, and I\u2019ve been doing it for 30 years, and I want to go through it. I\u2019ll give you the 5 steps that I use every day, and I hope that you find it useful. Thank you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Al Brooks, MD: Biography<\/h3>\n\n\n\n<p>As many of you know, I\u2019m a physician. I got my medical degree and I did my ophthalmology residency at the University of Chicago. I taught eye surgery at Emory University, and I was on the clinical faculty at UCLA. I published dozens of scientific papers on eye diseases way back in the 1980s.<\/p>\n\n\n\n<p>As a trader, I\u2019ve been day trading in five decades since the 1980s. I\u2019ve lectured on four continents. I write a daily blog, which reaches about a million people a month worldwide. And I am a Master Trading Class instructor at the <a href=\"https:\/\/www.cmegroup.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Chicago Mercantile Exchange (the CME)<\/a>. I\u2019m also an author, and I\u2019ve received some nice compliments from people who run very big platforms in the trading world. I created the Brooks Trading Course, which is available at brookstradingcourse.com, and I also speak daily in a trading room at brookspriceaction.com.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Main points<\/h3>\n\n\n\n<p>I think it\u2019s really important as a trader to do the same thing every day, to develop a routine. I want to talk about the routine that I use. You may have seen many charts from me, either in books or on websites or on my daily blog, or on my daily blog on other websites. You\u2019ll see lines and boxes and textboxes. I want to talk today about how I create all of that.<\/p>\n\n\n\n<p>It\u2019s important to approach every market and every timeframe the same. When you think about trading, trading is exactly that: it\u2019s trading. You\u2019re buying and somebody else is selling; you\u2019re selling, somebody else is buying. It\u2019s rational human behavior. Every chart is just a portrayal of rational human behavior, and it doesn\u2019t matter what market it is. Doesn\u2019t matter if you\u2019re trading fruit in Africa. It doesn\u2019t matter if you\u2019re trading property in Europe. Buying an apartment, selling an apartment. It doesn\u2019t matter if you\u2019re doing stocks or commodities. It\u2019s all the same.<\/p>\n\n\n\n<p>It doesn\u2019t matter on the timeframe, either. Therefore, when I look at a chart, a map of interaction between humans, it doesn\u2019t matter what the market is. It doesn\u2019t matter what the timeframe is. It\u2019s all going to be the same. It\u2019s based upon the same rational human behavior.<\/p>\n\n\n\n<p>When I look at a chart and I\u2019m going to mark it up, put lines on it, and try to look for patterns, I typically begin with the lines. I look for <a href=\"https:\/\/www.brookstradingcourse.com\/price-action\/what-is-price-action-6-aspects\/\" target=\"_blank\" rel=\"noreferrer noopener\">channels, Wedges. I look for Double Tops, Double Bottoms, and Triangles<\/a>, and I draw lines to highlight those things.<\/p>\n\n\n\n<p>Next I look at unusual bars, special bars. Very big bars. A bar that is small, its low above the low of the prior bar, its high below the high of the prior bar. An inside bar. Consecutive inside bars. An outside bar. A big bar followed by a bigger big bar. And then a combination of an inside-outside-inside bar. Things like that. I\u2019ll talk about those as we go on.<\/p>\n\n\n\n<p>Then finally, after I\u2019ve highlighted the lines and the special bars, I next draw red and green boxes for where I would enter or where I think an ideal entry is. Then finally, I add textboxes.<\/p>\n\n\n\n<p>I have hundreds of patterns that I rely on when I\u2019m trading. I\u2019ve developed them over the years. I\u2019ve been watching pretty much every tick in the stock market now for well over 30 years. When you do that for such a long time, you tend to notice things. I have names for things. I classify things. I have an <a href=\"https:\/\/www.brookstradingcourse.com\/price-action\/brooks-encyclopedia-chart-patterns-sampler\/\" target=\"_blank\" rel=\"noreferrer noopener\">Encyclopedia of Chart Patterns<\/a> available to traders on my website. I have things categorized. I look for those patterns to repeat every day, and I know what the market will tend to do once it starts to develop a pattern, and that helps me structure a trade.<\/p>\n\n\n\n<p>When I\u2019m marking up a chart at the end of the day for other people to study, I put the names of the patterns and some information about the pattern to help traders understand what they should do the next time they come across that pattern.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Traders must practice!<\/h3>\n\n\n\n<p>Traders must practice. If you\u2019re a professional football player, you play on Sunday. You\u2019re not staying home watching TV the rest of the week. You\u2019re practicing every day. If you\u2019re a professional musician and play for a major symphony orchestra, you\u2019re going to practice as well. You may perform a few times a month, but you\u2019re going to be practicing every day.<\/p>\n\n\n\n<p>Traders should not just show up when the market opens and expect to do well. They should practice after the market closes. Spend some time reviewing the day\u2019s price action on the charts that you trade and look for patterns. Think about what you did and what you could have done.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Same approach for all markets and all time frames<\/h3>\n\n\n\n<p>I said I use the same approach for all markets and all timeframes, and that\u2019s true. What\u2019s the key to practicing as a trader? It\u2019s simply looking at charts and trying to find patterns. It\u2019s obvious. The more you understand about what the market is doing and the better able you are to anticipate what it\u2019s about to do, the more money you stand to make. The quicker you recognize a pattern, the faster you\u2019ll be able to structure a trade.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How should traders practice? Look at charts<\/h3>\n\n\n\n<p>Here we\u2019ve got a bear channel and we have a line drawn in across the top, but we\u2019re trending down. We have a channel. We\u2019re breaking below the channel and we are reversing up. We have three legs in a channel \u2013 one, two, and three. It\u2019s a Wedge. Also, on this bar, we went down, we went up. On this bar, we went down and we went up. That\u2019s a Micro Double Bottom. I call it a Micro Double Bottom because it takes place over 2, 3, or 4 bars. If you were looking at a much smaller timeframe chart, it would be an actual Double Bottom. The lows could be 10 or 20 bars apart depending on what timeframe that you looked at.<\/p>\n\n\n\n<p>So it\u2019s important to recognize this. You have a Wedge Bottom and a Micro Double Bottom, and now you have a bull bar closing on its high, and it\u2019s a second consecutive bull bar. The odds are we\u2019re going higher. It\u2019s reasonable to buy on a stop 1 tick above the high of that bar. So you\u2019d get filled on this bar.<\/p>\n\n\n\n<p>At a minimum, you should always be trying to go for a profit that is at least twice your risk. If you buy on a stop above this bar and you put your stop just below it, this is two times your risk. So your risk is from your entry price to your stop, and that\u2019s twice that distance. Therefore, your reward is twice your risk. If you do that, you\u2019ll have structured a good trade. And if you do that consistently, you have a very good chance of being a consistently profitable trader.<\/p>\n\n\n\n<p>When I talk about structuring a trade, I\u2019m talking about thinking about your position size. Where\u2019s your profit target? How much risk? How likely is it that you\u2019re going to make your profit? You also have to be aware of what the market would do that would make you decide your plan is no longer valid. You should get out early sometimes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Write on charts: Find setups everyday<\/h3>\n\n\n\n<p>I create my charts in PowerPoint. What I do is I use a capture program, like Snagit or the Windows snipping program. On my trading platform, I just capture the chart, and then I paste it into a slide on PowerPoint. Then I add the lines and the entry boxes, sometimes the exit boxes. Then I add text with the reason for my behavior.<\/p>\n\n\n\n<p>Then look on the right over here. I have a bunch of objects, and I have that on all the slides in my PowerPoint. What I did was I created a bunch of little objects, and they allow me to quickly mark up a chart. So I have a small line. I can just hold the Control key, grab that line, move it over here, and then I can change its orientation, its starting point, its end point. <\/p>\n\n\n\n<p>A textbox, if I want to create a textbox, I just grab this, hold the Control key, drag it down here, and then just change the text. If I want to change the color of the text, I just click on this and then over here, the format painter, and then drag it through the text. That\u2019s how I create these charts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Daily Setups: Blog and members&#8217; version<\/h3>\n\n\n\n<p>I create charts every day. You\u2019ll see them on my blog. I call them my Daily Setups. In my blog, it\u2019s free. Anybody can look at them. This is a sample of a Daily Setup chart that is on my blog for anyone to see. It\u2019s for the Emini, a 5-minute chart. I have price over here, I have time over here. I have lines, I have boxes, I have big things highlighted.<\/p>\n\n\n\n<p>And then for people who subscribe to my charts \u2013 I have a service that they can subscribe to \u2013 I have much more information about what\u2019s going on on the chart. Some people prefer the extra detail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">EURUSD Forex: 4-hour chart<\/h3>\n\n\n\n<p>This is a 4-hour chart of the euro versus the dollar, Forex market. So every bar is 4 hours. Here\u2019s price here, here\u2019s time here. I said before that traders trade based upon logic. It results in reliable patterns. People use the same logic in everything they do, and the result is that the patterns are present on all markets and all timeframes. And therefore, traders look at all charts and all markets the same. I don\u2019t pay attention to price. I don\u2019t pay attention to time. I just look at the charts.<\/p>\n\n\n\n<p>If you watch TV and you see professional traders talk about a chart \u2013 they\u2019ll sometimes talk about gold, crude oil, stocks, stock index futures \u2013 you never hear them say, \u201cOh, this is Apple, and therefore I\u2019m going to trade it differently from how I trade gold or stock index futures.\u201d They don\u2019t say that, because they understand that the chart is just a representation of rational human behavior, and it\u2019s going to be the same for all markets and all timeframes.<\/p>\n\n\n\n<p>If I were to mark up this 4-hour chart of the euro versus the dollar, I would do it something like this. If you did not know it was a Forex chart, you would not be able to tell that it was a Forex chart. It could also be a stock index futures chart, an Emini chart. It could be gold. Because all charts look the same, and patterns are the same.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Gold futures: Monthly chart<\/h3>\n\n\n\n<p>Here\u2019s a gold futures chart, and it\u2019s a monthly chart. If I remove the price and time and mark up the chart, it looks the same as any other market and any other timeframe. Again, this is the monthly chart, but it has the same patterns that you see on any other chart and any other timeframe. When I\u2019m marking up any chart, I\u2019m always beginning with lines.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Early selloff: Late bull trend reversal<\/h3>\n\n\n\n<p>As I said, I think it\u2019s really important to develop routines to do the same things every time, and I want to talk to you about my daily routine. How do I go from this slide to the next slide? I\u2019m going to show you step by step. I start with this slide, a slide with nothing on it other than a 20-bar Exponential Moving Average \u2013 again, this is a 5-minute Emini chart. 81 bars to the day session.<\/p>\n\n\n\n<p>At the end of the day, when I\u2019m marking up the chart, this is what I have, and that\u2019s the end of my practice. I have everything drawn in. I have a lot of textboxes explaining why I would do certain things. This is an example of a typical Daily Setup chart that is available for traders on my website.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Begin by looking for Wedges: 3 legs in a channel<\/h3>\n\n\n\n<p>All right, let\u2019s talk about how I got there. First of all, I have a chart with nothing on it. Then I look for channels, Wedges. A Wedge is a channel, and it has three or more points. I can draw a channel up like this. There\u2019s Point 1, Point 2, and Point 3. Sometimes Wedges are contracting; sometimes they\u2019re not. This one\u2019s fairly parallel, maybe a little bit contracting the way I have it drawn.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rising Wedge: Only draw top line<\/h3>\n\n\n\n<p>When a Wedge is rising, I\u2019m looking for a reversal down, so I\u2019m really only interested in the top line. I don\u2019t want too many things on my chart, so I don\u2019t even draw that bottom line.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Perfect Wedges are rare: Usually 2 ways to draw line<\/h3>\n\n\n\n<p>No pattern is perfect. Most patterns are not perfect, and therefore I would not expect the three points to be exactly at the line. One of the two points here or here is going to be above the line. The more perfect a pattern is, the more computers will find it, the more computers will trade it, and the more reliable the pattern will be. The higher the probability it will unfold the way you want it to unfold.<\/p>\n\n\n\n<p>I always start with Point 1, and then I could draw a line using Point 2, and the line would be there. Or I could use Point 3 to draw the line. Point 1 and Point 3. So there are two ways to draw the line. All lines start with Point 1, and I can either create a line using Point 2 or Point 3.<\/p>\n\n\n\n<p>It\u2019s rare to have a perfect Wedge where the three points are on the line. Almost all Wedges have either one of the two points above the line, or one of the two points below the line. The blue line, Point 3 is below, but the pink line, Point 2 is above the pink line. Point 2 overshot the pink line. Point 3 undershot the blue line.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choose line with overshoot: Look for reversal at point 3<\/h3>\n\n\n\n<p>My routine is to always choose the line where there\u2019s an overshoot. I like overshoots. Since the blue line has an undershoot, I\u2019m not going to use the blue line. The pink line, here, Point 2, is an overshoot, and I want an overshoot either at Point 2 or Point 3. So I\u2019m going to use the pink line and get rid of the blue line.<\/p>\n\n\n\n<p>I\u2019m looking to sell a reversal down from the top of a channel. If we start to reverse somewhere around a possible line using 1 or 2, I\u2019m going to look to sell a reversal down, especially below a bear bar closing on its low, expecting lower prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Want line with overshoot: At either point 2 or 3<\/h3>\n\n\n\n<p>After I draw the first line, I then look for other channels, other Wedges, and there are many varieties. I have an Encyclopedia of Chart Patterns that talks about all the different ways that patterns can unfold and appear.<\/p>\n\n\n\n<p>For example, we have another channel here. This is a bear channel, and we\u2019ve got three or more points \u2013 one, two, and three. You can draw the line using Point 1 and Point 3. You can draw the line using Point 1 and Point 2. If I do that, Point 3 overshot the line. And remember, I want lines that overshoot. Here, Point 2 overshot. Here, Point 3. Point 2 here undershot the line. I don\u2019t want lines that undershoot; I want lines that overshoot. So, I\u2019ll get rid of the blue line.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sometimes point 2 overshoots: Sometimes point 3<\/h3>\n\n\n\n<p>This is an example of a channel where the line from Point 1 to Point 2 created an overshoot at Point 3. Here\u2019s an example of a line using Point 1 and 3 as an overshoot at Point 2, and therefore I\u2019m going to choose 1 and 3 to draw the line here, but I\u2019m going to choose 1 and 2 to draw the line there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Find all: More opportunities to make money<\/h3>\n\n\n\n<p>There were many other Wedges on this chart as well, and I just keep adding lines for every conceivable Wedge. Some of them are hard to see. For example, there are three pushes down here \u2013 one, two, three. I have a little pink line there. It\u2019s hard to see. And here, there are three points down \u2013 one, two, and three. When the pattern is small, it\u2019s a Micro Wedge. And then here, I could also use one, two, three or four.<\/p>\n\n\n\n<p>Remember, a Wedge is at least three lines. So we have a channel with at least three points in it, so that blue line is another way to draw a Wedge, and I\u2019m looking for a reversal. We\u2019ve got a reversal. I want to buy above a bull bar that closes near its high, hoping that we get a trend up.<\/p>\n\n\n\n<p>Sometimes patterns fail. We got a push up here, big bar, and then a small bar. Then a big bar, a second push up, and then a bear bar, and then a third push up. So we have a Wedge and a very Tight Channel. I would call that a Parabolic Wedge. But we did not get a reversal down below the bear bar. Instead we get an upside breakout. So I would look to buy above the high of this bar, betting that the Wedge Top has failed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Look for Double Tops and Bottoms: Use loose definitions<\/h3>\n\n\n\n<p>Next I\u2019m going to look for Double Tops and Double Bottoms. Double Tops and Double Bottoms are rarely perfect. If you look for a perfect pattern, you\u2019re not going to find many setups and you\u2019re not going to trade very much. It\u2019s better to be flexible. The more perfect something is, the more likely it will lead to a profitable trade.<\/p>\n\n\n\n<p>Here we\u2019re rallying. We broke above this high. But I always look to the left to see the context. If there\u2019s a possible Double Top, we might get a reversal down. Here, we rallied, and it looks like we\u2019re turning down. I\u2019d be inclined to sell below this bar depending on reasons. I\u2019ll look to the left to see if there\u2019s a Double Top. This high might simply be a test of these highs, so it might be a Double Top with these highs.<\/p>\n\n\n\n<p>Remember, I also had a Wedge here \u2013 one, two, three. So it\u2019s a Wedge and possibly a Double Top with that high, maybe a Lower High Double Top with that high. So a Wedge and a Double Top is an added reason to look for a reversal down, selling below a bear bar closing near its low. There\u2019s also a Micro Double Top here. This bar went up and down, and this bar went up, and here we\u2019re going down. <\/p>\n\n\n\n<p>So we have a Micro Double Top, a Double Top, and a Wedge. So there are several things going on here that would make me more inclined to take that short. Here\u2019s another Double Top. The market tried to reverse up, but it failed in the neighborhood of that high. So it\u2019s a Double Top bear flag.<\/p>\n\n\n\n<p>I also want to look for Double Bottoms. The second low of a Double Bottom can be below the low of the first low. Here we tried to get a Double Bottom. Did not go very far. And here we have a Higher Low Double Bottom. Here\u2019s a Lower Low Double Bottom. This low is below that low, and here, this low is above that low. So it\u2019s a Higher Low Double Bottom. Again, a Micro Double Bottom. We went down here, we went up, we went down, and now we\u2019re trying to go up again. You could buy above this bar or above a bar buying on its high.<\/p>\n\n\n\n<p>Here we have a very big Double Bottom and it\u2019s a Higher Low above the bottom of the bear trend. So it\u2019s a Double Bottom Higher Low, and that has the possibility of being a Major Trend Reversal into a bull trend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sometimes Triangles: Contracting or expanding<\/h3>\n\n\n\n<p>There are often Triangles on charts, and again, they\u2019re rarely perfect. We have rising lows here and we\u2019re basically sideways here. We tried to break to the upside and that reversed down. So that\u2019s a contracting Triangle. Sometimes Triangles are expanding. Here we have this high above that high, and this high is above that high. So we\u2019re going up, and then here we\u2019re going down. So an Expanding Triangle, five points \u2013 one, two, three, four, five \u2013 and we keep getting false breakouts. A new low, new high, new low, new high. Again, a reversal pattern. I\u2019ll sell below that bar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Special bars can be signal bars: Strong breakouts<\/h3>\n\n\n\n<p>I also look for special bars, big bars or small bars, inside bars or outside bars. Here we have 3 consecutive bull bars. Not much overlap, and this bar was closing on its high, this bar was closing on its high. So this is sustained, strong buying, and the context is good. Remember, it\u2019s possibly a Double Bottom with this low, and the Double Bottom is above that low, so it\u2019s possibly a Double Bottom Higher Low Major Trend Reversal. It\u2019s a surprisingly strong rally. It\u2019s a bull surprise rally, and bull surprises tend to have higher prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Special bars can be signal bars: ii, OO, ioi<\/h3>\n\n\n\n<p>What took place here? This bar, its high is at the high of that bar; its low is below. So that\u2019s a variation of an outside bar. Look at the bar before it, this bar. Its high is above that bar; its low is below that bar, and therefore it\u2019s an outside bar, and this is a bigger outside bar. So outside-outside, consecutive outside bars. It\u2019s a BreakOut Mode pattern. Traders will buy if the market goes above, and they\u2019ll sell if it goes below. So I\u2019m looking for an OO, and I would sell below the low of that bar and below that bar. A bear bar closing near its low, I\u2019d sell below that bar as well.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buy setups: Buy above bull bar closing near its high<\/h3>\n\n\n\n<p>Here is the chart with all those lines drawn in and with the special boxes drawn in. Next, I\u2019m looking for entries. If I\u2019m looking to buy, I want to buy above a bull bar, preferably one that is closing near its high. If I\u2019m looking to sell, I want to sell below a bear bar, preferably one that\u2019s closing near its low.<\/p>\n\n\n\n<p>Theoretically we have consecutive bull bars here. It\u2019s reasonable to take that buy. However, it turned out to be a failure, and I would get out either below this outside bar or certainly below that, because at this point there\u2019s a sell. Sometimes I\u2019ll put an outline around a green box or a red box, and when I do that, I\u2019m trying to highlight setups that are particularly good. They\u2019re ones that a person starting out should try to take. Nobody\u2019s going to take all of these setups. What you\u2019re trying to do is take as many as you possibly can.<\/p>\n\n\n\n<p>Stuff happens. You could be trading on the markets, you have to go to the bathroom, you\u2019ve got to eat lunch, you could get a phone call. All kinds of things happen. It\u2019s hard to watch every tick all day long. If this was a daily chart, it would be easier. You could simply look at the chart at the end of the day and place your orders for the open of the next day. But if you\u2019re day trading and if this is a 5-minute chart \u2013 in this case, it is a 5-minute chart \u2013 it\u2019s very easy to miss a lot of setups.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sell setups: Sell below bear bar closing near its low<\/h3>\n\n\n\n<p>After I draw in the buy entries, I then draw in the red boxes, or sell setups. So this bar, reasonable to sell below. And here we have an OO pattern below the Moving Average. It\u2019s an especially good sell, so I would sell below that or I\u2019d sell the first pullback. And then here we have a whole bunch of things. We have an Expanding Triangle, a Micro Double Top, possibly a Double Top here, and we have a Wedge rally to a Double Top, and it\u2019s nested. <\/p>\n\n\n\n<p>We have a smaller Wedge here and a bigger Wedge here. So this is a very good sell. We have a second consecutive bear bar closing on its low. That\u2019s also a higher probability sell, so I put a blue outline around the red box.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Add text: Highlight major terms (from Encyclopedia)<\/h3>\n\n\n\n<p>Then I add textboxes so people can understand some of the rationale for why I\u2019m taking the trades. This is something you should consider doing every day at the end of the day, marking up your charts. You don\u2019t have to write the textboxes in, but I would certainly draw lines and highlight special bars. If you do this for several months, you\u2019ll begin to recognize patterns unfold during the day, and that will allow you to anticipate trades, and then when the trade triggers, you\u2019ll be able to take it and you\u2019ll be able to manage it well. That is what I mean by practicing trading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Review<\/h3>\n\n\n\n<p>Again, it\u2019s important as a trader to do the same thing every day, have routines. One routine is to mark up a chart at the end of every day to practice so that you\u2019ll develop a lot of experience in your ability to recognize patterns.<\/p>\n\n\n\n<p>Second, use the same approach for every market and every timeframe.<\/p>\n\n\n\n<p>When I\u2019m marking up a chart, I begin with lines. I usually begin looking for channels, Wedges, and then Double Tops, Double Bottoms, and Triangles.<\/p>\n\n\n\n<p>After that I\u2019m looking for unusual bars \u2013 for example, big bars or a series of big bars, Surprise Bars. I also look for small patterns like consecutive inside bars or consecutive outside bars, or an outside bar followed by an inside bar. That is an ioi pattern.<\/p>\n\n\n\n<p>Finally, on my daily charts that I mark up for my website, I add boxes for buy entries and for sell entries, and then finally, I add textboxes that explain why I think something is a good buy or a good sell.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Concluding comments<\/h3>\n\n\n\n<p>Again, this is Al Brooks, and I want to thank you very much for watching this video. I hope that you found it helpful. I think it\u2019s very important to have a routine every day that you do at the end of trading. It\u2019s good to practice recognizing patterns and thinking about how you\u2019ll manage them real-time, because you\u2019re going to keep encountering the same patterns. The more patterns that you know, the faster you are at recognizing them, the more chance you\u2019ll have at structuring and managing profitable trades. Thank you very much.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Video duration 29min 21sec. Download: Al Brooks&#8217;s Daily Setups Powerpoint Objects (3MB ZIP File) 5 Steps to finding today&#8217;s trades &#8212; Video transcript Introduction Hi, I\u2019m Al Brooks. Thank you for watching this video. I want to share with you today an approach that I\u2019ve had for more than three decades. At the end [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":117550,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[132,241],"tags":[299,163],"class_list":{"0":"post-117543","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-trading-strategies","8":"category-video","9":"tag-day-trading","10":"tag-trading-strategies","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Bonus-Video-13-Daily-Setups-Chart.jpg","author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/117543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=117543"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/117543\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/117550"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=117543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=117543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=117543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}