Price Action Case Study · Al Brooks Methodology

The Patient
Continuation Trade

E-Mini Futures · Intraday · Bull Trend Context · Long Entry · ABC + TBTL + High 2
Profit
+12.00
Points captured
Entry Bar
E46
@ 6,800.50
Initial Stop
−7.25
Points risk
R:R Ratio
1:1.65
Reward to risk
Hold Time
14
Bars (E46 → E60)
Pattern Visualisation

Bar-by-Bar Setup

The ABC correction, TBTL consolidation, and High 2 continuation — from signal to measured move exit.

ABC + TBTL + High 2 Long Setup
Bull candle
Bear candle
Fast EMA
Slow EMA
Entry
Target
6820 6815 6810 6804 6796 ABC PATTERN TBTL — 10 BARS HIGH 2 + EXIT E30 A B E44 — C STOP 6,800.50 Entry 6,812.50 Exit +12 pts E46 ENTRY E47–53 E55 SIG E56 E60 EXIT 12 pts 1:1 move Fast EMA Slow EMA Bullish bar Bearish bar
Al Brooks — Reading Price Charts Bar by Bar
"The TBTL is not a failure — it is the market's way of testing conviction before the continuation."
— Al Brooks · Reading Price Charts Bar by Bar
Breakdown

Three-Phase Analysis

Each phase of the trade — from ABC setup through TBTL patience to High 2 confirmation and measured move exit.

01
Phase 1 — ABC Correction
Pattern Identification
From E30 to E44, the market traces a classic ABC correction within a bullish higher-timeframe context. The A-leg pushes down from the swing high, the B-leg delivers a partial retracement, and the C-leg retests and slightly undercuts the A-leg low. Bar E44 is the defining moment — it forms a breakout bar below the A-leg low, then closes well off its low, creating a 2-bar reversal with E43. The bears pushed hard and failed to hold. The buy trigger: one tick above the high of E44.
02
Phase 2 — Entry & TBTL
Patience Through Consolidation
The order filled at E46 — two bars after the signal. The stop is placed one tick below E44 initially, then tightened to one tick below E45 once that bar closes as a bullish bar. Bars E47 through E53 form a TBTL — Ten Bar Two Legs — sideways consolidation. This is normal and expected after a reversal. The market often pauses in a tight range before confirming the new direction. Patience is critical — nothing about the TBTL structure invalidates the original setup.
03
Phase 3 — High 2 & Exit
Confirmation & Measured Move
After the TBTL concludes, the market makes two small legs down within the consolidation. Bar E55 forms a strong bullish signal bar — the High 2 setup. Buying one tick above E56 provides a second entry for those who missed E46. The measured move is simple: take the range of the E44 bar, project it upward from the E44 high. This gives the 1:1 target, reached precisely at E60. Exit yields exactly +12.00 points.
Annotations

Bar-by-Bar Annotations

Every critical bar — from signal to entry to stop management to exit.

Complete Bar Annotations
BarSignal / EventActionStopNotes
E30 ABC pattern begins — — Swing high; start of A-leg down
E36–37 A-leg completes — — First leg down finishes; B bounce begins
E40 B-leg peak — — Partial retracement high; C-leg begins
E44 Breakout bar + 2-bar reversal BUY trigger: 1 tick above E44 high 1 tick below E44 low C-leg complete; bear breakout failed; strong reversal signal
E46 Buy order filled LONG entered @ 6,800.50 1 tick below E44 Fill 2 bars after signal; normal slippage
E45 close Bullish bar closes Move stop to 1 tick below E45 E45 low − 1 tick Stop tightened; risk reduced
E47–E53 TBTL consolidation HOLD E45 low − 1 tick Ten bars, two legs sideways; normal pause; stop untested
E55 High 2 signal bar SECOND ENTRY: 1 tick above E56 E55 low − 1 tick Good signal bar after 2 legs down in TBTL; bull confirmation
E56 High 2 entry bar LONG added (or initial entry) E55 low − 1 tick Buy 1 tick above E56; High 2 confirmed
E60 1:1 measured move reached EXIT at 6,812.50 — +12.00 pts; measured from E44 range projected up
Concepts

Key Concepts

The four Al Brooks price action concepts that drive this trade.

Correction Pattern
ABC Correction Pattern
A three-wave corrective structure within a trend. The A-wave is the initial impulse against the trend, B is a partial retracement back in trend direction, and C is a second push against the trend — typically ending near or slightly below the A-wave low. When the C-leg fails to extend (breakout failure), the original trend is likely to resume.
Consolidation
TBTL — Ten Bar Two Legs
Al Brooks' observation that after a reversal, the market frequently consolidates for approximately ten bars in a two-legged sideways range before continuing. Traders who exit during TBTL often re-enter at worse prices. Staying in a position through TBTL — provided the stop is not hit — is generally the correct strategy when the original setup remains valid.
Continuation Signal
High 2 Setup
A two-legged pullback within a bull trend or bull rally, where the second pullback low holds above the first pullback low. The "High 2" label refers to it being the second attempt by bears to push price down — and failing. Buying above the signal bar at the end of the second pullback leg is a reliable trend-continuation entry in Al Brooks methodology.
Price Target
1:1 Measured Move
A price target derived by measuring the height of a key bar or swing and projecting that distance forward in the direction of the trade. In this case, the range of E44 (from its low to its high) was projected upward from the E44 high. This gives a minimum target expectation. Al Brooks considers the 1:1 measured move to be the most reliable target for continuation trades.
Verdict

Setup Rating

A
Overall Grade
Textbook ABC + TBTL + High 2 Continuation
A textbook with-trend continuation trade executed with discipline. The ABC correction provided clear structural context, the 2-bar reversal at E44 gave a high-probability trigger, and the TBTL consolidation tested — but never invalidated — the thesis. The High 2 at E55/E56 offered a superior second entry with tighter risk. The 1:1 measured move target was reached precisely at E60 for +12.00 points. Active stop management from E44 to E45 reduced risk by ~30% without changing the trade thesis. This is a repeatable, rules-based setup.
"The TBTL is not a failure — it is the market's way of testing conviction before the continuation."
— Al Brooks · Reading Price Charts Bar by Bar
Takeaways

Key Lessons

Five principles from this trade that apply to every future ABC continuation setup.

01
Structure first, entry second
The ABC pattern provided the structural context. The 2-bar reversal at E44 provided the trigger. Neither alone is sufficient — the combination of context plus signal is what makes the trade high-probability.
02
TBTL is not a reason to exit
The ten-bar consolidation tested patience but never invalidated the structure. Exiting during TBTL would have meant re-entering at worse prices. Trust the setup until the stop is hit.
03
Second entries offer lower risk
The High 2 at E55/E56 gave traders who missed E46 a second chance with a tighter, well-defined stop. Second entries after TBTL consolidations are often superior risk/reward.
04
Measured moves provide objective exits
Defining the 1:1 target before entry removes emotion from the exit decision. Price reached the exact 1:1 level at E60. Having a predetermined exit prevents both premature exits and overstaying.
05
Stop management is active
Moving the stop from below E44 to below E45 reduced risk by roughly 30% without changing the trade thesis. Active stop management is part of the trade — not an afterthought.