If you’re just starting out in the world of trading or looking for a fresh approach to understand the market, this guide is for you. We’re about to dive into price action trading through the lens of one of the greatest voices in the field: Al Brooks.
Get ready to uncover the secrets behind price charts and understand the logic behind every move.
What Is Price Action? The Language of the Market
Imagine the market is constantly “speaking” to us through price movement.
Price action is the art of interpreting that language. Instead of relying on complex indicators that often lag, price action focuses on the pure analysis of price charts. Candle by candle, bar by bar — each one tells a story about the battle between buyers and sellers.
For Al Brooks, this battle is the essence of the market. He argues that everything you need to know is already reflected in the price. News, economic events, rumors — all of it is absorbed and expressed through price action. By learning to read these signals, you gain an edge, observing the market in real time without filters or delays.
Al Brooks’ Approach: Context Is Everything
One of Brooks’ major contributions is his emphasis on context. It’s not enough to look at a single candle or an isolated pattern. You need to understand where that candle or pattern fits within the larger price structure. Brooks teaches us that the market moves in trends, channels, and trading ranges. Identifying the current “state” of the market is key to making better decisions.
Think of it like a map. Before deciding where to go, you need to know where you are. Likewise, before deciding to buy or sell, you need to understand if the market is in a strong directional move, consolidating within a tight channel, or stuck in a sideways range.
Candles and Bars: Your Best Friends
At the heart of Brooks’ price action are candlesticks (or bars, if you prefer). Each one is a window into market psychology over a specific time period. You’ll learn to observe:
- Body color: Indicates whether buyers (green/white body) or sellers (red/black body) dominated the period.
- Body size: A large body suggests strong directional pressure, while a small body indicates indecision.
- Wicks (or shadows): These show the extremes price reached and rejected. Long wicks can signal reversals or the presence of large players.
Brooks emphasizes analyzing the relationship between candles. A single candle might mean little, but a sequence of two or three can form reversal or continuation patterns that reveal market intent. For example, a strong bull candle closing near its high, followed by another strong bull candle, suggests strong buying momentum.
Support and Resistance: Battleground Zones
Markets tend to respect certain price levels.
Support is where price has historically found a “floor” and struggled to go lower. Resistance is where price has found a “ceiling” and struggled to go higher. For Brooks, they’re magnets.
The beauty of price action is that you don’t need perfectly drawn lines to identify these zones. Price movement itself — with repeated highs and lows — shows you where buyers and sellers are stepping in. How price behaves near these zones — whether it breaks through with strength or pulls back — offers valuable clues about trend strength or potential reversals.
Understanding Market Logic: Brooks’ Step-by-Step View
Brooks simplifies reading the market into a few key pillars:
- Trends: Is the market going up, down, or sideways? That’s the first question to ask.
- Channels: Within trends, price often moves inside well-defined channels. Trading near the edges of these channels can be highly profitable.
- Trading Ranges: When the market is flat, it oscillates between support and resistance. Identifying these boundaries helps you buy low and sell high within the range.
- Reversals and Continuations: Price action patterns and overall chart context help you decide if a move is likely to continue or reverse.
Brooks’ method encourages intuitive chart reading. The more time you spend observing, the more you’ll develop a feel for the market — picking up on nuances that most beginners miss.
How to Start Learning Price Action (Step by Step)
Understanding Al Brooks’ price action is a continuous process. There’s no magic formula — just the commitment to observe and learn from the market itself. Here are some tips to help you begin:
- Start with the basics: Don’t try to absorb everything at once. Focus on understanding trends, channels, and the basic interaction between candles.
- Keep your charts clean: Eliminate unnecessary indicators. Your focus should be 100% on price.
- Keep a trading journal: Record your analysis and decision-making process. It’ll help you identify patterns in your learning.
- Be patient: Price action isn’t about shortcuts — it’s about building a solid foundation. It takes time to develop true reading skills.
Final Thoughts
Learning price action is learning how humans behave under pressure. It’s not about guessing where the market is going — it’s about understanding what it’s doing right now. Al Brooks shows us that every candle has something to say, and the more time you spend with charts, the more fluent you become in this silent language.
If you’re curious to go deeper into Al Brooks’ methodology, his official course is one of the most complete paths out there. It’s intense, structured, and packed with insights — perfect if you’re serious about mastering price action at a deeper level.
Curious to keep going?
Start here: 5 Lesson I Wish I Knew Before Learning Price Action
Then explore: 3 Mistakes People Make When Learning Price Action on Their Own
And when you’re ready: Price Action Strategies That Actually Work
