this is al Brooks thank you for watching
the Brooks training course this is the
second of two videos on buying and
selling pressure I'm going to begin by
talking about buying and selling
pressure within trading ranges and then
I will talk about it within channels
whenever I look at a trading range I'm
always look
for signs of sustained flying and
pressure and if there's more buying
pressure then I think a bold breakout
will be likely and I think of the market
as always in long even though it's still
in a trading range on the other hand if
there's more selling pressure in the
trading range then I think a bear
breakout is more likely and I think of
the market as always in short
what do I look for mental signs of
buying and selling pressure I want to
see bull bars if I'm looking for a bull
breakup and I want to see bull bars
getting bigger I want to see consecutive
bull bars I want to see bull bars
closing on their highs I want to see
more bull bars than bear bars I want to
see gaps a close of the bar about the
high of the prior bar the close of the
bar above the high of many prior bars
same here this close is above the high
of maybe twenty or thirty bars
I want to see higher highs and higher
lows higher lows higher highs and early
Bull Channel
when I start to see signs that buying
pressure is greater than selling
pressure
I believe the odds begin to favor a bold
breakout
which is what we got
here another trading range and I'm
assessing buying and selling pressure we
have five consecutive bull bars good for
the Bulls however look at what took
place over here no more consecutive bull
bars and the bars are getting very small
the bull bars are very small and then
now we have five consecutive bear bars
and here we have six consecutive bear
bars so the selling pressure is building
and look at the close of this bar it's
below the low of this bar and practice
below the low of the past 40 bars
breakout and is following a six or seven
consecutive beer bars
and this is a possible lower high major
trend reversal bull trend we are break
out lower high
Laura hi major trend reversal there's a
left shoulder head right shoulder so
this lower height major trend reversal
is also a head and shoulders top that
does not make it any more reliable but
traders commonly used the term head and
shoulders top and that's why I'm
mentioning it
and this was the result of that
accumulating selling pressure
channels also have signs of buying and
selling pressure
for example obviously a strong will
break out seven bull bars many of them
closing in their highs and the bodies
were getting smaller and then they get
bigger again smaller and then bigger
again will break out the spike and then
we start getting pullback so the channel
spike in channel bull trend
when I look at the channel I'm assessing
selling pressure all the way up and if
there are signs of increasing selling
pressure then the channel might soon
evolve into a trading range
pull backs and tight training ranges so
there's some selling right we were going
up and now we're going sideways to down
side we sit down sideways a little bit
down there is some selling going on
unlike here with this virtually no
selling
and then look at this we got to be Arab
artist decent-size and then we got a
rally here and there's one push up two
pushes up three pushes up so it's
possibly a which bear flag after this
small bigger breakout and it's also
potentially a lower high major trend
Rizal a bull trend here's the trendline
we've got a bear breakout and now we
have a wedge over high
and we did get a second leg down leg one
pulled back leg - and remember channels
usually evolved into trading majors full
channels 75% chance you're going to get
a beer break up a break below the bottom
of the trendline only 25% chance you're
going to get a bull breakdown we got a
bear breakout and then usually even with
a strong sell-off like that a bowl
channel is usually followed by a
training range
here bull breakout and pull back and
then we're starting to channel up and
within this bull channel there are three
consecutive bear bars closing on their
lows and another pretty good-sized bear
bar here and you can think of this as
possibly a wedge one push up two pushes
up maybe three pushes up here
consecutive bear bars closing on their
lows the gaps between the close of the
bar and the low of the prior bar and we
have a good bull bar here but what
followed it a doji a good bull bar here
what followed it a bear doji boot bull
bar here what followed it a bear bar so
instead of a series of consecutive bull
bars like we had here now we're getting
bull bars with bad follow-through and
that means that the market probably will
soon evolve into a trading range which
it did
so Bulls black in channel and channel
evolved into a trading range
and a bear trend here we have a bear
spike and then a channel we have
pullback so the start of a channel I
like to assess the selling pressure
compared to the buying pressure and I
pay attention to science of buying
pressure because a channel a bear
channel has a 75% chance of a bull
breakout it could simply be sideways it
could be up but in any case a bear
channel I think of as a bull flag I'm
expecting a bull breakout 75% chance
only 25% chance a bear breakout
and I'm constantly assessing the buying
pressure in a beer channel because it
increases the chances that the channel
will soon develop into a trading money
here we have a series of bull bars and
we've got some more bull bars here
we're getting tails below bars so when
the bar is trying to resume down the
bigger trend is trying to resume down
bulls are buying in bears or scalping
trying to get a bear bar and trade it up
into the clothes so bears are scalping
they're less confident the trend is
going to go far so instead of swing
trading more and more bears of scalping
then I look at bear bars bear breakdown
what a bull bar for a follow-through
bear breakout bull bar
better break up bullbar
this bar closed above the high of this
bar in fact a close above the high of
many bars
it's a sign of strength occlusive of the
high of 15 Mars
so we have a bull breakout above the
high of a bear channel and a book the
high of a low to short
so we have a low one here a low two here
or you could say it's a double top Bear
Flag which is a large low - we have a
decent cell signal water but instead of
going down it rehearsed up and broke
again above the high
traders will buy at that high or just
above many will simply buy the clothes
because it's a decent-size full body and
it should not happen if the Bears are
still in control
break out you can put a stop just below
here you could put it down here but if
the bulls have taken control the market
should not trade below this low so in
other words it's an a major high or low
even though it's not all that convincing
yet
so you can buy the clothes or you could
wait for strong Apollo through and then
start to buy closes
and every time is a strong break out
traders raise their stock to below the
most recent higher law
by the clothes even if you bought the
worst clothes and Marcus started to
reverse it's still ok if you're lying to
stop here same thing we got a good
Bulevar a decent follow through bar
little body that's good
traders will buy the clothes expecting
higher prices
you can also buy beer closes because a
bear close is an attempt to reverse the
market and we know the market became
always in law and it's probably going
higher so traders will buy both bull
closes and beer closes
he'll also buy below bars so we've got a
reversal attempt traders will assume the
reversal attempt will fail so they'll
buy at the low of that bar they'll buy
at the low of every pry bar in this
video I talked about buying and selling
pressure within trading ranges and I
also talked about the importance of
buying and selling pressure in channels
if there's a bull channel and it's
starting to accumulate selling pressure
the bull channel will probably have a
bear breakout and it will probably
evolve into a trading range on the other
hand if you have a bear channel and
you're starting to get conspicuous
buying pressure you're probably soon
going to get a breakout above the top of
the channel and the channel will
probably evolve into a trading range
I'm out Brooks thank you for watching
the Brooks training course this is the
second of two videos on buying and
selling pressure