The market spends most of its time in "Trading Ranges" or "Trends." Most "reversal" patterns actually end up becoming "Bull Flags" or "Bear Flags" that lead to trend resumption. To trade these successfully, you need:
A three-push pattern (three legs up or three legs down) that shows exhaustion. Al Brooks Trading Price Action Reversals Pdf Files
A small trading range or flag that appears late in a trend. When this flag breaks but quickly fails and reverses, it often marks the end of the entire trend. The market spends most of its time in
Waiting for the second signal (the test of the extreme). When this flag breaks but quickly fails and
In the world of professional trading, few names carry as much weight as Al Brooks. A former ophthalmologist turned legendary price action trader, Brooks is renowned for his ability to read every single bar on a chart. While his trilogy on price action is considered the "Bible" of the discipline, his book stands out as the definitive guide for traders looking to catch the beginning of new trends.