If you’ve spent any time studying Al Brooks’s methodology, you’ve probably asked yourself: “What are the criteria for knowing when a market becomes ‘Always In Long’?”
This is an excellent question, as it touches on a crucial point: there is no single answer or magic indicator. There isn’t one signal that announces the market’s turn to an “Always In Long” state. Instead, it gives us a series of signs that, when aligned, indicate that the dominant force has shifted.
Let’s build the mental checklist that traders use to identify when the market’s balance swings overwhelmingly toward buyers.
What “Always In Long” Really Means
Before listing the signs, it’s essential to understand the concept. First, you need to understand the “always in” concept: it describes a trader’s current position if they were forced to be in the market at all times, either long or short.
Therefore, an “Always In Long” market doesn’t mean you should be long 24/7. It means that, in that timeframe, the market’s bias is, without a doubt, bullish. The path of least resistance is up, and the buying force is so in control that any counter-move is quickly absorbed.
It’s the opposite of confusion. It’s the certainty that buyers are in charge.
The Transition Signals to “Always In Long” (The Checklist)
Here is a list of criteria that, when combined, indicate that the market has likely become “Always In Long.” Think of this as the evidence you need to collect on the chart:
1. Sequence of Higher Highs and Higher Lows: This is the most basic criterion. An AIL market builds a consistent series of higher highs and higher lows, showing a healthy trend progression.
2. Initial Spike and Confidence: Almost every “always-in” move begins with a strong spike that acts as a “war cry” from the buyers. This initial explosion is what convinces most traders that the uptrend is real.
3. Consecutive Trend Bars: To confirm strength, we usually need to see at least two strong, consecutive bull bars. They represent a consensus, an agreement that the price will rise.
4. Sustained Sense of Urgency: Strong trends create a sustained sense of urgency. Traders are so confident that the price will continue to rise that they desperately wait for a pullback to buy lower, fearing they will miss out.
5. The Moving Average as a Guide: If most recent bars are closing above the exponential moving average (EMA), the bias is bullish.
6. Pullback Behavior:
▪ Pullbacks that do not follow a climax or a failed final flag. Even if it’s just a High 1, it’s a buying opportunity
▪ Short and sideways pullbacks are common in strong trends, indicating that traders are afraid of missing the rally and buy on any small pause
▪ The first pullback occurs after three or more breakout bars, lasts only one or two bars, is not a strong bear reversal bar, and does not reach the breakout point or a breakeven stop.
7. Absence of a Strong Bearish Reversal: Buyers are in control and confident in the trend’s continuation and will not wait for a strong bull reversal bar at the end of the pullback, since most signal bars in pullbacks in a trend will look weak.
8. Large Opening Gaps: Large opening gaps that do not close quickly usually mark the start of a strong trend for the day, with the day often closing near its high
9. Calm Markets Before the Storm: Curiously, calm markets with many small bars, often in the shape of dojis, can precede the largest trends. It’s the silence before the explosion.
10. Institutional Volume: The strength of a trend doesn’t come from small individual traders but from institutions. They can continue buying even at higher prices, adjusting their position size to control risk.
Signs of Strength in Individual Bars
Reading an “Always In Long” market is done bar by bar. Look at the “micro-story” each bar tells:
- Robust Bull Trend Bars: Strong bull bars with large bodies and small or absent tails are a sign of strength
- Micro Gaps: The low of the bar after a strong bull trend bar is at or above the high of the prior bar. This “micro gap” is a subtle but powerful sign of strength and urgency
- Strong Follow-Through: If the bar following an initial breakout is large, the chance of the trend continuing is greater
- Spike Progression: The trend’s spike grows for several bars without a significant pullback, showing the dominance of buyers
- Closes Near Highs: Price opens near the low and closes at or near the high of the bar, showing that buyers defended the territory for the entire period.
- Consistency Above the Moving Average: The absence of two consecutive closes of bars on the opposite side of the moving average is a sign that sellers do not have the strength to gain ground
How to Act and What to Avoid in an “Always In Long” Scenario
Once you have identified an “Always In Long” market, your strategy should change dramatically.
How to Act:
- Buy on Pullbacks: Take advantage of every pullback to buy, even if it’s just a High 1
- Enter the Market: At least a small position should be maintained, especially if the trend is strong and clear.
- Focus on Swing Trading: Hold part of your position for a longer swing trade, expecting two or more legs up, allowing the trend to develop.
- Increase Position Size: Once you are consistently profitable, focus on increasing your position size rather than adding lower-probability entries.
What to Avoid:
- Don’t Trade Countertrend: Trying to sell when the market is clearly “always in long” is a losing strategy
- Don’t Trade in Tight Trading Ranges: Avoid trading in choppy markets with stop entry orders, as the probability of being trapped is high.
- Patience and Discipline: Avoid picking bad setups. The discipline to wait for high-probability setups is your greatest advantage.
Final Thoughts
An Always In Long market doesn’t appear suddenly in a single bar. It emerges when a series of signals align and the market shifts from a phase of indecision (“confusion”) to one of conviction.
Being able to read this collection of signs is what allows you to trade with the market’s flow instead of fighting against it. That’s how you make sure that, when you act, the odds are in your favor.
Remember: patience is not wasting time — it’s about building the confidence needed to act when the right opportunity appears. If you ever feel these signals are still hard to spot in real time, that’s normal — even Brooks emphasizes practice. His course is full of examples that make recognizing Always In Long much easier with time.
The more you practice spotting an Always In Long market, the more natural it becomes — and it’s the same skill that protects you from falling into common traps.
Related Posts:
- Chart Analysis Mistakes: 5 Errors Every Trader Must Avoid – a quick guide to protect yourself from costly misreads in chart analysis
- Bar-by-Bar Reading: The Foundation of Price Action Trading – the skill that makes spotting “Always In” markets possible
- Why Most Traders Fail with Price Action (and How to Avoid It) – mistakes to avoid so you don’t get trapped against the trend
