Books Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader Book by Al Brooks

Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader 

Author: Al Brooks

Overview

Reading Price Charts Bar by Bar by Al Brooks is a foundational book for traders interested in understanding the subtleties of price action. Rather than relying on indicators or complex algorithms, Brooks emphasizes interpreting pure price charts—especially bar and candlestick charts—to identify trading opportunities and manage risk.

Key Concepts

1. Price Action Is All You Need

Brooks contends that mastering price action—reading how price moves bar by bar—can be more effective than relying on complex indicators or trading systems.

The book demonstrates how consistent application of price action principles leads to profitability and helps minimize losses12.

2. Focus on the Story of Each Bar

Each bar on the chart narrates the ongoing "battle" between buyers and sellers.

Key elements include the size of the body, the length of the wicks (tails), and the relationship of the current bar to previous bars.

Brooks teaches traders how to recognize and interpret these patterns in real time, which is far more challenging than analyzing historical charts13.

3. Essential Analytical Tools
The book covers:

Trendlines and Channels: Drawing and interpreting trendlines, channel lines, and their role in identifying market structure.

Prior Highs and Lows: Recognizing support/resistance zones based on historical price extremes.

Breakouts and Failed Breakouts: Understanding the dynamics of breakouts, the psychology behind them, and how to distinguish real from false moves.

Relative Bar Size: Observing the magnitude of a single bar for clues about market strength or weakness.

Bar Relationships: Analyzing how the current bar's action relates to previous bars to inform decision-making24.

4. Practical Application

Brooks structures much of the analysis using real five-minute charts, mostly from the E-mini S&P 500, but lessons can be applied to daily, weekly, or virtually any liquid market.

The approach is hands-on: traders are taught to locate entries and exits as bars develop in real time, rather than in hindsight.

The book also touches on swing trades and options positioning based on daily charts156.

Why This Book Is Noted for Serious Traders

Depth Over Simplicity: While price action is conceptually simple, Brooks’ bar-by-bar methodology is detailed and demanding, requiring disciplined study and observation.

Minimalist Philosophy: It dismisses the need for advanced software and encourages mastery of chart reading using basic tools.

Emphasis on Markets' Inner Workings: Rather than giving rigid rules, Brooks teaches traders to think for themselves and understand the logic driving market movements46.

Reception

The book is lauded for its depth and is recommended for dedicated traders able to commit to its intensive approach.

Some readers find it challenging due to its detail-heavy and dense writing style, but persistent study tends to reward traders with significantly improved technical insight7.

Summary Table

Notable Quotes

"By teaching traders that there are no rules, just guidelines, [Brooks] has allowed basic common sense to once again rule how real traders should approach the market."
—Noble DraKoln (Futures magazine)4

In Summary

Reading Price Charts Bar by Bar is a comprehensive, skill-building guide for those who want to truly understand the dynamics of price movement in any tradable market. Commitment to its bar-by-bar method can equip a trader with enduring technical skills, independent of short-lived market trends or proprietary trading systems125.

1 BOOK