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Every strategy documented with full context — the market condition it requires, exact entry trigger, stop placement, target logic, and the checklist to run before pulling the trigger.

4 strategies
M2B
Strategy 01 · With-Trend Long · EMA
Moving Average 2nd Entry Long
Two-legged pullback to EMA in a strong uptrend — buy the second touch
With-Trend EMA 2nd Entry Continuation
Long
Direction
High
Prob. (trend)
2:1+
Min R:R
▼
Trend Context Required
Strong uptrend — series of higher highs and higher lows. Price predominantly above EMA. Avoid if trend is weak, choppy, or sideways.
Pullback Pattern
Two-legged pullback down to the EMA. First leg bounces, second leg tests the EMA again — the double-test confirms the level is holding.
Why It Works
Institutions buy pullbacks to the EMA in uptrends. The second touch flushes out weak longs and attracts new buyers, creating a higher-probability entry point.
M2B — Visual Pattern Diagram
EMA Prior high Leg 1 2nd touch EMA Leg 2 Signal bar Buy stop 1 tick above Stop below leg 2 low Target — prior swing high / MM UPTREND 2-LEG PULLBACK CONTINUATION
Entry Trigger
Buy stop 1 tick above the high of the bar that touches the EMA on the 2nd leg down.
Do not enter on the first leg — wait for the second test of the EMA to confirm the level is holding.
The signal bar should ideally be a bull bar or show a lower wick rejection at the EMA.
If the entry is not triggered within 2 bars, cancel the order — the setup is stale.
Stop Loss
Stop goes 1 tick below the low of the 2nd leg pullback — the lowest point the pullback reached before reversing.
If the EMA is far from the pullback low, use the signal bar low as the stop instead.
Move stop to breakeven once price has moved 50% of the way to the first target.
Never widen the stop — if the thesis is wrong, take the loss cleanly.
Target Logic
First target: prior swing high — exit 50% of position here.
Second target: measured move — project the height of the prior bull leg from the pullback low.
Move stop to breakeven after first target is hit. Let the runner work.
Exit all if price shows a strong bear reversal bar or closes below the EMA.
Complete Rule Set — M2B
Rule Requirement Notes
Trend context Strong uptrend required Series of HH/HL. Price spending majority of time above EMA. Skip if choppy or sideways.
Pullback structure Two-legged (a-b-c) First leg down, small bounce, second leg down to EMA. One-legged pullbacks are 1st entry — lower probability.
EMA touch 2nd leg must touch or come within 1–2 ticks of EMA If the 2nd leg doesn't reach the EMA, it's a different setup. Don't force it.
Signal bar quality Bull bar preferred, or lower-wick rejection A bear close signal bar is acceptable only if the trend is very strong. Weak doji signal bars = skip.
Entry order Buy stop 1 tick above signal bar high Never use a market order. Stop entry ensures you only get filled if price moves in your direction.
Stop placement 1 tick below leg 2 pullback low Or below signal bar low if tighter. Hard max: 10 pts on ES / 500 pts on NQ.
Avoid condition Weak trend, sideways market, tight trading range If the EMA itself is flat or declining, this setup does not apply. Trend must be directional.
Target 1 Prior swing high — exit 50% Move stop to breakeven immediately after T1 is hit.
Target 2 Measured move — exit 25% Height of prior bull leg projected from pullback low. Trail stop on remaining 25%.
Exit early if Strong bear bar closes below EMA Or if the pullback extends to a 3rd leg — thesis is no longer valid.
Pre-Entry Checklist — M2B
Uptrend confirmed — HH and HL structure visible
EMA is rising (not flat or declining)
Two-legged pullback structure clearly visible
2nd leg has touched or come close to EMA
Signal bar is a bull bar or shows lower wick rejection
Buy stop order placed 1 tick above signal bar high
Stop loss placed 1 tick below 2nd leg low
Risk is within 1–2% of account (size check done)
Target 1 (prior high) and Target 2 (MM) pre-identified
No major news event in the next 30 minutes
Skip the Trade If...
Trend is weak, choppy, or in a tight trading range
EMA is flat or pointing downward
Pullback is only one leg (this becomes a 1st entry)
Signal bar is a large bear bar closing on its low
Pullback has extended to 3 or more legs (reversal risk)
Already taken 4 trades today (daily max reached)
FOMC, CPI, NFP or major news within 30 minutes
Already down 15 pts today (kill switch triggered)
M2S
Strategy 02 · With-Trend Short · EMA
Moving Average 2nd Entry Short
Two-legged rally to EMA in a strong downtrend — short the second touch
With-Trend EMA 2nd Entry Continuation
Short
Direction
High
Prob. (trend)
2:1+
Min R:R
▼
Trend Context Required
Strong downtrend — series of lower lows and lower highs. Price predominantly below EMA. Avoid if trend is weak, choppy, or sideways.
Pullback Pattern
Two-legged rally up to the EMA. First leg bounces up, small pullback, second leg rallies back to EMA — the double-test confirms the level is acting as resistance.
Why It Works
Institutions sell rallies to the EMA in downtrends. The second touch traps weak shorts who covered and new longs who bought the rally, fuelling the next leg down.
M2S — Visual Pattern Diagram
EMA Prior low Leg 1 2nd touch EMA Leg 2 Signal bar Sell stop 1 tick below Stop above leg 2 high Target — prior swing low / MM DOWNTREND 2-LEG RALLY CONTINUATION
Entry Trigger
Sell stop 1 tick below the low of the bar that touches the EMA on the 2nd leg up.
Do not short on the first leg up — wait for the second test of the EMA to confirm resistance.
The signal bar should ideally be a bear bar or show an upper wick rejection at the EMA.
Cancel the order if not triggered within 2 bars — setup is stale.
Stop Loss
Stop goes 1 tick above the high of the 2nd leg rally — the highest point price reached before reversing.
If EMA is far from the rally high, use the signal bar high as the stop instead.
Move stop to breakeven once price has moved 50% of the way to the first target.
Never widen the stop — if price breaks above the 2nd leg high, the thesis is invalidated.
Target Logic
First target: prior swing low — exit 50% of position here.
Second target: measured move — project the height of the prior bear leg from the rally high.
Move stop to breakeven after first target. Trail the runner.
Exit all if price shows a strong bull reversal bar or closes above the EMA.
Complete Rule Set — M2S
RuleRequirementNotes
Trend contextStrong downtrend requiredSeries of LL/LH. Price spending majority of time below EMA. Skip if choppy or sideways.
Rally structureTwo-legged (a-b-c)First leg up, small dip, second leg up to EMA. One-legged rallies are 1st entry — lower probability.
EMA touch2nd leg must touch or come within 1–2 ticks of EMAIf 2nd leg doesn't reach EMA, it's a different setup. Don't force it.
Signal bar qualityBear bar preferred, or upper-wick rejectionA bull close signal bar is acceptable only if the trend is very strong. Weak doji = skip.
Entry orderSell stop 1 tick below signal bar lowNever use a market order. Stop entry ensures you're only filled if price moves in your direction.
Stop placement1 tick above leg 2 rally highOr above signal bar high if tighter. Hard max: 10 pts on ES / 500 pts on NQ.
Avoid conditionWeak trend, sideways market, tight trading rangeIf the EMA is flat or rising, this setup does not apply. Trend must be directional downward.
Target 1Prior swing low — exit 50%Move stop to breakeven immediately after T1 is hit.
Target 2Measured move — exit 25%Height of prior bear leg projected from rally high. Trail stop on remaining 25%.
Exit early ifStrong bull bar closes above EMAOr if the rally extends to a 3rd leg — thesis is no longer valid.
Pre-Entry Checklist — M2S
Downtrend confirmed — LL and LH structure visible
EMA is declining (not flat or rising)
Two-legged rally structure clearly visible
2nd leg has touched or come close to EMA
Signal bar is a bear bar or shows upper wick rejection
Sell stop order placed 1 tick below signal bar low
Stop loss placed 1 tick above 2nd leg high
Risk is within 1–2% of account (size check done)
Target 1 (prior low) and Target 2 (MM) pre-identified
No major news event in the next 30 minutes
Skip the Trade If...
Trend is weak, choppy, or in a tight trading range
EMA is flat or pointing upward
Rally is only one leg (this becomes a 1st entry)
Signal bar is a large bull bar closing on its high
Rally has extended to 3 or more legs (reversal risk)
Already taken 4 trades today (daily max reached)
FOMC, CPI, NFP or major news within 30 minutes
Already down 15 pts today (kill switch triggered)
IB
Strategy 03 · Breakout · 4-Bar Pattern
Inside Bar Breakout
Mother bar compression → inside bar → tighter compression → trigger close. Enter on B4 close.
Breakout Long & Short 4-Bar Pattern Compression
Both
Direction
Med–High
Probability
2:1+
Min R:R
▼
The 4-Bar Structure
B1 Mother Bar — wide range, sets boundaries. B2 Inside Bar — contained within B1. B3 Compression — even tighter. B4 Trigger — closes above B3 high (long) or below B3 low (short).
Why It Works
Each bar builds energy inside the mother bar's range. The final compression (B3) is a coil — when B4 closes outside B3, trapped participants on the wrong side are forced to exit, fuelling the breakout move.
Context Matters
Higher probability when the breakout direction aligns with the prevailing trend. Counter-trend breakouts fail more often. Check VWAP and EMA direction before committing to a side.
Inside Bar Breakout — Long & Short Pattern Diagrams
LONG BREAKOUT B1 MOTHER HIGH LOW B2 INSIDE B3 COMPRESS B3 high → trigger B4 TRIGGER ENTRY Stop (B1 low) Tight stop (B3) T2 · 2:1 T1 · 1:1 (B1 range) SHORT BREAKOUT B1 MOTHER HIGH LOW B2 INSIDE B3 COMPRESS B3 low → trigger B4 TRIGGER ENTRY Stop (B1 high) Tight (B3 high) T1 · 1:1 T2 · 2:1
Entry Trigger
Long: Enter on the close of B4 when it closes above B3's high. Do not enter earlier.
Short: Enter on the close of B4 when it closes below B3's low. Same logic, mirrored.
B4 must close outside B3's range — a close inside B3 is not a trigger, no matter how close it gets.
If B4 is an outside bar engulfing B3 entirely, the setup is weaker — consider skipping or reducing size.
Stop Loss
Wide stop: 1 tick beyond B1's opposite extreme (below B1 low for longs, above B1 high for shorts).
Tight stop: 1 tick beyond B3's opposite extreme — tighter R:R but higher chance of being stopped out early.
Use tight stop in strong trending conditions. Use wide stop when the setup is less clean or context is mixed.
Move to breakeven once T1 (1:1) is hit.
Target Logic
T1 (1:1): Project B1's full range from the entry point. Exit 50% here.
T2 (2:1): Double B1's range from entry. Exit 25% here, trail remaining 25%.
In a strong trend, price may extend well beyond T2 — use a trailing stop on the runner rather than taking a fixed exit.
Exit all if price re-enters B3's range after the breakout — setup has failed.
Complete Rule Set — Inside Bar Breakout
BarRuleNotes
B1 — Mother BarWide range bar — sets the boundaryAll subsequent bars must remain inside B1's range. A B1 that is an inside bar itself weakens the setup.
B2 — Inside BarHigh and low contained within B1Signals initial consolidation. The smaller relative to B1, the better.
B3 — CompressionFurther compression inside B1 (usually B2 too)B3's high (long) or low (short) becomes the key trigger level. This bar builds the coil.
B4 — TriggerCloses outside B3's rangeLong: closes above B3 high. Short: closes below B3 low. Entry is on the close of this bar.
EntryClose of B4Market order on B4 close, or limit order at B4's close price if using a slower entry.
Stop — wide1 tick beyond B1's opposite extremeLong: 1 tick below B1 low. Short: 1 tick above B1 high. Safer but compresses R:R.
Stop — tight1 tick beyond B3's opposite extremeBetter R:R but more vulnerable to noise. Use in strong trend context only.
Target 1B1 range projected from entry (1:1)Exit 50% at T1. Move stop to breakeven immediately.
Target 22× B1 range from entry (2:1)Exit 25% at T2. Trail remaining 25%.
AvoidCounter-trend in sideways / weak marketBest results when breakout direction aligns with the prevailing trend and VWAP/EMA.
Fail signalB5 re-enters B3's rangeIf price reverses back inside B3 after the B4 trigger, the breakout has failed — exit immediately.
Pre-Entry Checklist — IB Breakout
B1 is a clearly wide range bar relative to recent bars
B2 is fully contained within B1's high/low range
B3 shows further compression — smaller than B2
B4 has closed outside B3's range (not just poked)
Breakout direction aligns with prevailing trend / VWAP
Stop level identified (B1 wide or B3 tight)
T1 and T2 pre-calculated from B1 range
Risk is within 1–2% of account
No major news event in next 30 minutes
Skip the Trade If...
B4 closes inside B3's range — no trigger confirmed
B4 is a large outside bar engulfing B3 entirely
Breakout direction is counter-trend in a weak market
B1 is too small — not a genuine wide-range mother bar
Any bar pokes outside B1's range before B4 triggers
4 trades already taken today
Already down 15 pts today (kill switch)
FP
Strategy 04 · Reversal · Traps & Failures
Failure Patterns
H2 Failure · L2 Failure · Bear Micro-Channel Fade — trading trapped participants
Reversal Traps Counter-Setup Al Brooks
Both
Direction
Context
Dependent
2:1+
Min R:R
▼
What Is a Failure Pattern?
A failure pattern occurs when a standard setup (H2 long, L2 short) triggers — but price immediately reverses against it. Trapped participants become the fuel for the counter-move.
Why They Work
Every trader who entered the failed setup now has a stop in the market. When those stops are hit, they add momentum to the reversal. The bigger the trapped crowd, the stronger the failure move.
Key Warning
Failure patterns are advanced setups. They require fast recognition and decisive action. Do not trade them until standard setups (M2B, M2S, IB) are fully mastered.
Panel 01 — H2 Failure
SB H2↑ trigger REVERSAL BULLS TRAPPED → sharp drop
Setup: Bull pullback forms, H2 buy triggers fire — price reverses immediately below the signal bar.
Trapped: Bulls who bought the H2 are now underwater and forced to exit.
Entry: Short below the signal bar low once reversal is confirmed.
Stop: Above the signal bar high.
Target: Measured move down or prior swing low.
Panel 02 — L2 Failure
SB L2↓ trigger STRONG BUY BEARS TRAPPED → reversal up
Setup: Bear rally forms, L2 short triggers fire — strong buying absorbs all sellers and price reverses up.
Trapped: Bears who shorted the L2 are now underwater and forced to cover (buy).
Entry: Long above the signal bar high once reversal is confirmed.
Stop: Below the signal bar low.
Target: Measured move up or prior swing high.
Panel 03 — Bear Micro-Channel
FADE↑ FAILS Keep shorting until exhaustion
Setup: Nonstop bear bars in a tight channel — no bull bars, no pauses.
Fading fails repeatedly: Buying against this channel almost always loses. The channel absorbs every counter-move.
Correct approach: Keep shorting with the channel on every small bounce. Do not fade until a clear exhaustion signal appears.
Exhaustion signal: A large bull outside bar, a gap reversal, or price closing far above the channel top.
Brooks rule: In a bear micro-channel, assume continuation until proven wrong.
Failure Pattern Rules — Quick Reference
PatternTriggerEntryStopTarget
H2 FailureH2 buy fires, price reverses below signal barShort below signal bar lowAbove signal bar highMM down or prior swing low
L2 FailureL2 short fires, strong buying absorbs — reversal upLong above signal bar highBelow signal bar lowMM up or prior swing high
Bear Micro-ChannelTight consecutive bear bars, fades failShort every bounce inside channelAbove prior bar highUntil exhaustion signal
Brooks Core Principle — Failure Patterns
"When a reliable setup fails, the failure itself becomes a high-probability trade in the opposite direction. The trapped participants — bulls in an H2 failure, bears in an L2 failure — are forced to exit, and their exits are your entry signal. The bigger the crowd that got trapped, the stronger the failure move."
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