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Hello fellow traders of the Master Brooks Lineage 😎 The coolest cats on the block 😉
Question, as i jumped back on to review a critical video on how markets work. As of time of writing, this is in the "Getting Started" section #02A of approx 15 minutes.
This is such a critical concept to understand really the mechanisms behind how the markets work and move.
Can someone or one of the senior members of the Brooks lineage please confirm whether there was a different video on this topic? I've been searching tirelessly all over..if i remember correctly there was a video dedicated solely on this topic which lasted between 25-30 minutes.
Why i believe it is a different video is because my memory is recalling Al Brooks speaking about the market being like an "Auction" i remember these words clearly for some reason. However the video that's up now (#02A) doesn't state the word "Auction" in this video like i believe he explained in the past. He had a lot more scenarios of enlarged charts (not the smaller format of the current video) showing the probing nature of the market movements acting like an auction.
Please correct me if i'm wrong, was there ever a longer video on this topic? If so, where can it be found?
Thank you very much for your time! Much love to this fam.
Hey Eddy,
I don't remember Al using the word action but he talks about the markets constantly probing around to find a fair price. He talks about that in length in a later video in the course.
Sadly I don't remember in which video but you'll see it.
My humble suggestion would be to not get stuck in the word "auction" because it doesn't matter; it is all about TRs.
Here are my notes about the subject, which I took from that video and contains the gist of it:
"All markets are trying to maximize volume and maximize the number of trades. This can only happen around what market participants believe is "fair price". Markets constantly probe to find that reasonable price, so they sometimes have to go too far to find out how far "far enough" is. Markets need to go too far up & down, trying to find the edges of the range. Then it tends to oscillate around that "fair price". Meanwhile, new information is coming into the market and eventually the market decides that current price is wrong and starts to probe again to find the new "fair price". This is why 90% of the bars on every chart are either in a channel (which will evolve into a TR) or a TR, but only 5-10% are strong BOs. Markets are around "fair price" when they are in a TR. While "in balance", bars get smaller and overlap more and swings become smaller because everyone at that time agrees that market is near a "fair price". This constant probing happens on all TFs. Fundamentals are changing constantly and there are countless variables. Nobody knows all of them and they are interpreted differently. The result is the range of a fair price is constantly changing. Any TF can be most important like when you are trading 5M, a S/R on M can be important."
TR: Trading Range, TF: Time Frame, S/R: Support/Resistance, M:Monthly chart
Cheers!
