I have come to the conclusion, over several years, that Al Brooks is one of the biggest frauds in the trading industry. Check out his site http://www.brookspriceaction.com , he has no profitable students, doesn't care about that, and is clearly just looking for money. Brooks claims the measured move is his discovery, he claims, three-push patterns, wedges, triangles, etc are his, none of these are his discoveries. The biggest fallacy Brooks commits is the subliminal trick he uses to pitch his products, which is that if you label certain candlestick patterns in a logical manner that it is understandable and can be traded for profit. If I watched Brownian motion long enough I could come up with logical names for certain patterns I occasionally see, but what predictive value would that have, in a random system, in determining when and at what probability that behavior will transition to another predictable outcome?
I've never bought any of his stuff, but this doesn't surprise me. Ditto for the pure price action "gurus" on various forums, including here. None of them can produce statistically-significant evidence of their profitability.
And here we go again. You guys of this type really tell on yourselves by making topics of this type. There's no reason why someone who has a sound plan for making money and is profitable will attack so vigorously someone who shares their methods. Such behavior indicates that you are pissed off because you were looking for something in that person's work and didn't find it.
Al Brooks doesn't share his methods freely. He sells his methods, based on ideas which are not originally his, yet he claims they are. And Brooks does not take trades according to the methods he sells.
My issue was you equated the market with a random system, implying the market is completely random. If that is the case, then Al Brooks is a fraudster and we should all quit today.
If I were Al Brooks, I wouldn't have thrown away my career as an ophthalmologist to bet on the near-future directions of a price chart. That's got to be one of the worst "trades" I've ever seen.
No. At Brownian motion is motion at the lowest observable level. The markets, at the lowest observable levels, are a stochastic process. Sometimes applying logical labels to such randomness can give overconfidence and make a trader less successful.