Technical Analysis using Al Brooks method

We are forming a book reading club focussed on Al Brooks trading books. Here we select chapters to read for the week and we meet over zoom calls to discuss the topic selected. If anyone is interested in joining, please let me know. I can share links to resource material.
does it have to be over zoom? live chats can be arranged telegram..


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Today is a very interesting day. BN futures gapped up at open and then crashed in the first minute. The crash was too large so as to push it into the red. 2nd bar on the 5 minute chart arrested the slide. This resulted in an opening range of 550 points. 3rd bar shot up to recover back to the opening price. This was a strong fBO on the downside. Some of my friends traded successfully this fBO. Later it made a new high for the day. The first 3 bars (more precisely, the first bar) being long, confirmed that it is going to be a TR day. This gave traders opportunities to trade in both the directions at the extremes of the range.

In a way, such a Wide TR day is even better than a trend day because, on a trend day you do not know where the trend could stop. But on wide TR days, you know the direction as well as the target.

I still faced some problems trading options on such day. For example at the higher end of the TR, the price lingered for sometime and it did go against my position when I purchased puts. This can cause some loss because I buy weekly options and they lose value fast.


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