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Al Brooks

BrooksTradingCourse.com

Scalping the Emini open

BrooksTradingCourse.com BrooksPriceAction.com

Al Brooks

BrooksPriceAction.com

Live Emini trading room


When does opening range end?

No specific time, usually before 8:30 am PST

As early as first bar or as late as 10 am

With breakout, if day starts with TR

With TR, if day starts with BO


Why trade the opening range?

90% chance of swing trade…

4 points or more profit

Reward at least twice risk

Strong swing = best math for scalp


Either high or low of day forms in…

First 5 minutes on 20% of days

First 35 minutes on 50% of days

First 2 hours on 90% of days


Goal of most traders

Find one or more swing trades

But, many traders scalp while waiting


How many scalp setups?

Great scalpers see setups on every bar!

Take 20 or more trades a day

Most traders should focus on swings

Take only occasional scalps


Scalps during 1st hour

Very difficult to make money scalping

Better to look for swing

Best scalps are also swings…so swing!!


Main reason to avoid scalps…

Requires quick thinking and quick ACTION!

If cannot exit quickly when wrong, don’t scalp

If cannot quickly reverse mindset, don’t scalp


When wrong, exit quickly!

Always have a plan to exit

Have stops in market, not in head

Stops protect you from yourself!


If TR becomes trend, trade like trend!


PB below bottom of bull breakout

If initial tight trading range has bull BO…

PB can fall below bottom of bull leg

Look to buy…

Reversal up

Below TR with limit order


Buy more below!


Enter with stops or limit orders?

Trading range = limit orders = bet breakouts fail

Trend = stop orders = bet breakout succeed


First few bars often tell if…

Trend day

Trading range day


Trend from the open


Trading range day


Limit order open


Dojis, tight trading range, at MA


Signs of strong trend

Consecutive strong trend bars

Strong reversal bar if gap

Strong breakout from TR price action


3 consecutive bear bars, 3rd one = strong


Strong bull reversal bar, good context


Consecutive trend bars, but bad context

Unlikely to form trend

More likely will reverse

Likely will form opening reversal


Dojis, tight trading range, at MA


Reversals are common

Market always searches for direction

Probes up and down

Needs to find out what is too far

Most days, first direction is wrong

Initial move creates opening reversal


Opening reversals

Strong, quick test of support or resistance

Creates tail on most trend bars on daily chart


Opening reversal at 60 min MA


Opening reversal at yesterday’s low and high


Always look for…

Major trend reversal

Breakout or failed breakout of anything:

Swing high or low including high or low of yesterday

Trend line

Trading range or channel

Moving average


Is trend continuing or failing?

Is breakout continuing from 1st bar

or failing (reversing)?

If failing, is market just pulling back

and about to resume breakout?


Swing begins with strong signal bar

Bull swing usually begins with…

Bull body

Close at or near high of bar

Bear swing usually begins with…

Bear body

Close at or near low of bar


Strong buy signal bar


Strong sell signal bar


If no clear signal bar…

Wait for strong breakout up or down…

1 big trend bar, especially with follow-through

3 – 5 smaller consecutive trend bars


Strong breakout after bad signal bars


Opening reversal at MA after gap up


Opening range setups


Double bottom, PB to MA


Wedge, big Low 2


LL MTR = Lower Low Major Trend Reversal


HL MTR, DB


Trading the open


Parabolic wedge on open


Endless pullback, then reversal


A week of trading the SPY opening range

Pay attention to yesterday

Look for reversals, breakouts, and failed breakouts

Look to swing, using usual management


Monday


Tuesday: after sell climax, expect rally


Now 2 big bull bars


Management of initial long


Buy closes, probable MM up


New BO so raise stop


Buy failed reversal attempts


Spike and channel, MM, top of TR, 2LU


Wednesday: gap above TR


Wednesday


Thursday: TR open, AIL


Thursday: FOMC report


Friday: Follow-through buying


Friday: parabolic wedge, buy climax


Al Brooks

BrooksTradingCourse.com

Scalping the Emini open


al brooks brookstradingcourse · find one or more swing trades ... brookspriceaction.com. how many...

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