Reading Price Charts Bar by Bar
Al Brooks, ISBN-13: 978-0470443958
I bought this tome a year or so ago and in that time I’ve read it cover to cover three times and delved into it countless more. Don’t get me wrong, this isn’t a book that entertains and and makes you feel good, oh no, this book makes you work for it. But I’ve got more out of this volume than any other technical trading book and value it more than any other in my library.
The thesis of Reading Price Charst is that every tick of every bar on every chart means something. If you look at the volume underlying any unremarkable bar you’ll see that a hell of a lot of people out there saw it as significant and traded it. If you didn’t, then you’re missing something that others saw. 396 tightly packed pages explain what you’ve missed, with 250+ tiny charts pulled apart in considerable depth. Fortunately the charts can all be downloaded from the publisher’s website.
Brooks’ writing style is formidable, he takes no prisoners and makes no attempt to make this an easy read. He doesn’t care if you like him (“if you’re not devoting your full attention to the…chart…I will take your money from your account and put it into mine”), and doesn’t explain anything twice. This means that nearly every page needs to be read 2 or 3 times before you can move on.
But it’s worth it. Every page is so rammed full of knowledge that, even if you’re a seasoned trader, your learning curve will be vertical.
Brooks trades S&P Eminis and the charts mostly concentrate on that market. However he does demonstrate that his principles work in any market including Forex, indices, futures, commodities and equities. It doesn’t matter if you’re trading currencies, gold or soybeans, his methods translate equally well to all.
The only downside is that novice traders will find this too difficult and may be put off altogether. If that’s you, get some more experience first, but do come back to this book later.
The Day Traders Verdict? 10/10. Required Reading.