According to Al Brooks, what does ‘buying pressure’ indicate in terms of price action?
It indicates that the price action favors the bulls and the market will likely go higher.
What visual evidence on a chart signifies strong buying pressure from institutions?
A series of strong bull bars with little overlap, closing near their highs.
In the context of selling pressure, what are characteristics of strong bear bars?
They are fairly large, close on their lows, and often appear in a series.
What does Al Brooks refer to as the ‘Footprints’ of institutions on a chart?
The clear signs of buying or selling pressure, such as consecutive strong trend bars.
When looking for buying pressure, you want to see _____ bull bars than bear bars.
more
What is a key characteristic of bar closes when significant buying pressure is present?
The bars close near their high, or at least above their midpoint.
A series of bull bars where each bar’s low is at or above the low of the prior bar is called a _____.
bull microchannel
What do tails below the bodies of bars indicate in a bullish context?
That bulls bought the bears’ attempt to break out, reversing the price up.
What is one type of ‘gap’ that signals a bull breakout?
The close of the bar is above the high of the prior bar.
In a strengthening bull trend, what should happen to the number of consecutive bull bars?
It should be increasing compared to earlier in the chart.
As buying pressure increases, what trend should be observed in the size of bull bar bodies?
The bull bar bodies should be getting bigger, not smaller.
In a market with strong buying pressure, what should be happening to the number and size of bear bars?
The number of consecutive bear bars should decrease, and their bodies should get smaller.
What does the presence of a bull microchannel imply about buyers’ behavior?
Bulls are not waiting for pullbacks to buy; they are buying aggressively.
What does Al Brooks mean by ‘clarity’ in price action?
A state where one side (bulls or bears) is clearly in control, which is due to strong buying or selling pressure.
When assessing selling pressure, you want to see bear bar bodies that are _____ than the bull bar bodies.
bigger
What is a ‘bear microchannel’?
A series of bars where the high of every bar is at or below the high of the prior bar, indicating relentless selling.
What do tails on the tops of bars indicate in a bearish context?
That bears successfully sold into every attempt by the bulls to rally the market.
What is one example of a bearish gap according to Al Brooks’ method?
The close of a bar is below the low of the prior bar.
In a strengthening bear trend, what should be happening to the size of bear bars?
The bear bars should be getting bigger, indicating increasing momentum.
As selling pressure increases, what should happen to the number of consecutive bull bars and their size?
The number of consecutive bull bars should decrease, and their bodies should get smaller.
In a trading range, what does assessing buying and selling pressure help a trader anticipate?
The likely direction of the eventual breakout from the range.
According to Al Brooks, what is a gap, in its simplest terms?
A space between any support and resistance on the chart.
What does Al Brooks call a situation where a market breaks out but the pullback overlaps the breakout point slightly?
A negative gap.
How does the reliability of a ‘negative gap’ compare to an actual gap for predicting future price movement?
It works similarly but is not as reliable and has a lower probability of leading to a measured move.
