TradingRightAl Brooks Strategy Rules — FAQ
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The TradingRight strategy rule engine scores 59 Al Brooks rules against the live bar. This FAQ explains what each one means and why it exists. Use the menu below to narrow to a style (Trending or Scalp) and a market cycle, or type in the search box to find a rule by keyword.
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ENTRYWhat does “Market mode is BREAKOUT” require?
5-min market mode is in a breakout phase aligned with the trade direction.
The higher (5-minute) timeframe must already be breaking out in your trade's direction. Trading a breakout rule while the 5-min is ranging or trending the other way means fighting the dominant flow — the lowest-odds thing you can do.ENTRYWhy a strong breakout bar (body ≥ 70%)?
Large strong bar breaking through key level — body 70%+ of bar range.
The bar that breaks the level should be a big, decisive trend bar with at least a 70% body. A small-bodied poke through a level shows hesitation and is far more likely to fail.ENTRYWhy NOT enter on the breakout bar itself?
Wait for second bar follow-through; never enter on the breakout bar.
Entering on the breakout bar means buying the high (or selling the low) of an already-extended move. If it fails you're instantly offside with no confirmation — so you wait.ENTRYWhat is “second bar confirms follow-through”?
Second bar after breakout closes in breakout direction.
The bar after the breakout should close in the same direction, proving buyers or sellers are still in control rather than the breakout being a one-bar spike that immediately reverses.ENTRYHow do I “enter on first pullback after breakout”?
Stop order above/below the first pullback after breakout (1–2 bars max).
Place a stop entry just above (long) or below (short) the first small pullback of one or two bars. This gives a defined risk and keeps you from chasing an extended move.ENTRYWhy must VWAP be aligned?
Institutional bias must align — price above VWAP for buy, below for sell.
VWAP is a simple proxy for the session's institutional bias. Being above it for longs (below for shorts) means you're trading with the big participants, not against them.STOPWhere is the stop “just inside the breakout level”?
Stop placed just inside breakout level (below breakout bar low for buy).
Put the protective stop just inside the level you broke. If price falls back through it, the breakout has failed by definition and you want to be out.STOPWhat is “Min R:R 1:1, max risk 1%”?
Risk no more than 1% per trade and target at least 1:1 reward-to-risk.
Cap risk at about 1% of your account and require at least a 1:1 reward-to-risk so the math can work across a series of trades. See Risk Management.ENTRYWhat confirms “Market mode is TIGHT_CHANNEL”?
Price consistently above/below 20 EMA — EMA sloping steeply.
A tight channel shows price hugging one side of the 20 EMA with a steep slope and only tiny pullbacks. Confirm the higher timeframe really is in this state before applying tight-channel rules.ENTRYWhat does “Price respects 20 EMA” mean?
Bull: price above 20 EMA. Bear: price below 20 EMA.
In a bull tight channel price stays above the 20 EMA (below in a bear). A clean relationship with the EMA confirms the channel is intact and one side remains in control.ENTRYHow shallow should the pullback be (25–40%)?
Pullback does not pass last swing low/high — 25–40% retracement only.
Tight-channel pullbacks are small — roughly a quarter to 40% of the prior leg, never breaking the last swing. A deeper pullback means it isn't really a tight channel.ENTRYWhy a signal bar body ≥ 70%?
Signal bar body is 70%+ of total bar range — strong conviction.
Enter on a strong signal bar (≥70% body) in the trend direction. Weak, small-bodied bars in a tight channel tend to precede chop, not continuation.ENTRYWhat is “VWAP slope aligns with trend”?
VWAP sloping in trend direction — price above (bull) or below (bear) all session.
VWAP should slope with the trend while price stays on its trend side throughout the session, reinforcing that control is one-directional.ENTRYWhy “No counter-trend trade”?
Most costly mistake — never trade against a tight channel.
Fading a tight channel is the single most expensive error in this cycle. Countertrend attempts get run over repeatedly — only trade with the channel.STOPWhere is the “tight stop just beyond signal bar”?
Stop just beyond channel line or signal bar extreme; tighten on 1-min.
Place a tight stop just beyond the signal bar or the channel line. You can drop to the 1-minute chart to tighten it further.ENTRYWhy “entry only at channel boundary”?
Never mid-channel — only at upper/lower channel edges.
In a broad channel, only enter at the upper or lower edge. Mid-channel entries have poor reward-to-risk and high reversal risk.ENTRYWhat is a “strong signal bar at edge (body ≥ 50%)”?
Strong signal bar at channel edge — body 50%+ of bar range.
Require a decent signal bar (≥50% body) right at the boundary to show the edge is being respected before you commit.ENTRYWhat does “pullback held last swing low/high” mean?
Bull: pullback held last swing low. Bear: held last swing high. Structure intact.
The pullback into the edge should hold the prior swing — the last swing low for bulls, the last swing high for bears — confirming the trend structure is still intact.ENTRYHow does VWAP align here?
Above VWAP for buy, below for sell.
Trade with VWAP: longs only above it, shorts only below it.STOPWhy “reduced size, breakeven earlier”?
Momentum weaker than tight channel — move stop to breakeven sooner.
Broad channels carry weaker momentum than tight channels, so trade smaller and move your stop to breakeven sooner to protect against the larger swings.ENTRYWhat confirms “Market mode is TRADING_RANGE”?
EMA flat, bars crossing EMA repeatedly, clear ceiling and floor.
A range shows a flat EMA, bars crossing it repeatedly, and a clear ceiling and floor. Confirm this before switching to range tactics. See Market Cycles.ENTRYWhy “buy near support / sell near resistance”?
Lower edge of range only for buys; upper edge for sells.
In a range you do the opposite of trend trading: buy only at the lower edge and sell only at the upper edge, fading the boundaries.ENTRYWhat is “VWAP flat (range day confirmed)”?
VWAP flat — price oscillating above and below confirms range day.
A flat VWAP with price oscillating above and below it confirms a range day rather than a trend day, validating the fade approach.ENTRYWhy a clear signal bar body ≥ 50% at the boundary?
Clear signal bar at boundary, body 50%+ of range.
You need a clear reversal signal bar (≥50% body) right at the boundary before fading it — proof the edge is rejecting price.ENTRYWhy “Do NOT chase range breakouts”?
80% of range breakouts fail — fade boundaries instead.
Roughly 80% of range breakouts fail and reverse back inside. Fading the boundaries is the higher-probability play; chasing the break is a trap.STOPWhere is the “stop just outside range boundary”?
1 tick beyond the boundary; ½ size.
Place the stop one tick beyond the boundary and trade half size. If it genuinely breaks out, you're out cheaply.ENTRYWhat is a “strong reversal signal bar”?
Large body against prior trend, closes near extreme.
A real reversal needs a large bar moving against the prior trend that closes near its extreme — conviction from the new side, not a tentative poke.ENTRYWhy require “at least 2 reversal signals”?
Wedge + climax / failed breakout / double top — never on 1 signal.
Reversals are rarer than they look, so require at least two confirmations (for example a wedge plus a climax, a failed breakout, or a double top). Never reverse on a single signal.ENTRYWhy a 66–75% retracement?
Trend exhausted — deep retracement confirms reversal.
A deep retracement of about two-thirds to three-quarters of the prior leg shows the old trend is exhausted and a genuine reversal is more likely.ENTRYWhat is “VWAP crossed and held 3+ bars”?
VWAP now acting as resistance/support on the new side.
Price should cross VWAP and hold the new side for at least three bars, with VWAP now acting as support or resistance from the other direction — evidence the bias has flipped.ENTRYWhy “Do NOT take reversal on a doji”?
Reversal needs strong signal bar — doji not sufficient.
A doji signals indecision, not a turn. A reversal entry needs a strong, committed signal bar instead.STOPWhere is the “stop beyond reversal extreme”?
Stop beyond extreme of reversal pattern (prior trend's last high/low).
Place the stop beyond the extreme of the reversal pattern — the prior trend's last high or low. If price exceeds it, the reversal has failed.ENTRYWhat is “5-min trending/breakout aligned”?
Scalp aligns with 5-min bias — no opposing trend.
Your 1-minute scalp must line up with the 5-minute bias. Never scalp against the higher-timeframe trend. See Trending vs Scalping.ENTRYWhy a 1-min breakout bar body ≥ 60%?
Genuine conviction — body 60%+ of bar range.
The 1-minute breakout bar needs a solid body of at least 60% to show genuine conviction rather than noise.ENTRYWhat does “bar large vs recent 1-min bars” mean?
Range ≥ 1.4× the 10-bar average — strong relative momentum.
The breakout bar's range should be at least 1.4× the recent 10-bar average. This relative-strength check filters out weak breaks that only look big in isolation.ENTRYWhy “wait for pullback or 2nd bar”?
Never enter on the breakout bar itself.
Just as in trend trading, never enter on the breakout bar. Wait for a pullback or a confirming second bar.ENTRYHow does VWAP align?
Above (buy) / below (sell) VWAP — institutional bias confirmed.
Be on the correct side of VWAP for your direction so the scalp rides the institutional bias.STOPWhy a stop 1 tick beyond the signal bar?
Tight, mandatory for all scalps. Never widen.
A tight, mandatory stop one tick beyond the signal bar — and you never widen it. This discipline is non-negotiable for scalping.STOPWhy “Min R:R 2:1” for scalps?
Scalps need higher ratio due to noise — minimum 2:1.
Scalps need at least 2:1 reward-to-risk because the small targets must still overcome noise, spread, and costs to be profitable over many trades.ENTRYWhat is “5-min in tight/broad channel”?
Scalp aligns with 5-min primary trend.
Confirm the 5-minute chart is in a channel so your scalp aligns with the primary trend rather than fighting it.ENTRYWhy “price respects 9 EMA”?
Bull: price above 9 EMA. Bear: below. EMA sloping.
Scalpers use the faster 9 EMA: price stays above it for longs (below for shorts) with the EMA sloping in the trade direction.ENTRYWhy a signal bar body ≥ 60%?
Closes near its high (buy) or low (sell).
Enter on a signal bar that closes near its high (long) or low (short) with at least a 60% body.ENTRYWhat is the “VWAP scalp” option?
Pullback to VWAP with strong reversal bar — enter on stop above/below.
Either align with VWAP, or take the specific VWAP-pullback scalp: a pullback to VWAP that prints a strong reversal bar, entering on a stop above (long) or below (short) it.ENTRYWhy “No counter-trend scalp”?
Highest probability mistake — never scalp against a tight channel.
Scalping against a tight channel is the highest-probability mistake there is. Always scalp with the channel.STOPWhere is the scalp stop?
Below signal bar low (buy) / above high (sell). Use 30-sec to tighten.
One tick beyond the signal bar — below its low for longs, above its high for shorts. Drop to the 30-second chart to tighten when possible.ENTRYWhy “entry only at 1-min channel boundary”?
Lower (bull) or upper (bear) channel edge — never mid-channel.
Enter only at the 1-minute channel edge — the lower edge for longs, the upper for shorts — never mid-channel where risk is poor.ENTRYWhy a signal bar body ≥ 60% at the boundary?
Strong commitment from buyers/sellers at the edge.
A strong ≥60% signal bar at the edge shows real commitment from buyers or sellers before you fade it.ENTRYHow does VWAP align?
Above VWAP for buy, below for sell at time of entry.
Be above VWAP for a buy and below for a sell at the moment of entry.STOPWhat is “½ size, BE after 3 bars”?
Broad channel = more noise; reduce size and breakeven early.
Broad channels are noisier, so halve your size and move the stop to breakeven after three bars to limit exposure.ENTRYWhat does “AT absolute range boundary” mean?
Not near it — AT it. Buy lower edge, sell upper edge.
For range scalps you must be exactly at the boundary, not merely near it. Buy the lower edge, sell the upper edge — precision matters because the targets are small.ENTRYWhy a signal bar body ≥ 60% at the boundary?
Strong reversal signal at boundary required.
Require a strong reversal signal bar (≥60% body) at the boundary before fading it.ENTRYWhat confirms a range day?
Price oscillating around VWAP confirms range day.
A flat VWAP with price oscillating around it confirms the range, validating the fade.ENTRYWhy “Do NOT scalp range breakouts”?
80% fail — most dangerous scalp.
Around 80% of range breakouts fail, making the breakout scalp the most dangerous one in a range. Fade, don't chase.STOPWhere is the stop?
1 tick beyond the boundary; ½ size.
One tick beyond the range boundary, at half size.ENTRYWhat is “5-min trend structure broken”?
Prior swing low/high violated on 5-min.
The 5-minute prior swing low (or high) must be violated — structural evidence on the higher timeframe that the trend is genuinely breaking.ENTRYWhy a 1-min reversal bar body ≥ 60%?
Body against prior 1-min trend direction.
A ≥60% body printing against the prior 1-minute trend direction signals the turn with conviction.ENTRYWhat is the 1-min VWAP flip?
Now acting as resistance/support — confirmed flip.
Price crosses the 1-minute VWAP and holds the new side for at least three bars, with VWAP now acting as resistance or support — a confirmed bias flip.ENTRYWhy “at least 2 reversal conditions”?
Failed breakout + climax bar / double top etc.
Require two confirmations — for example a failed breakout plus a climax bar, or a double top — before scalping a reversal.STOPWhere is the stop?
1 tick beyond reversal bar high/low; ½ size.
One tick beyond the reversal bar's high or low, at half size.Tip: Each “▶ Watch videos” button opens curated video results for that exact cycle and style. Pair the explanation here with a chart walkthrough, then drill the setup in bar replay.
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