{"id":58730,"date":"2016-10-02T01:35:59","date_gmt":"2016-10-02T08:35:59","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=58730"},"modified":"2021-05-27T04:52:48","modified_gmt":"2021-05-27T11:52:48","slug":"trading-buying-selling-pressure","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/trading-buying-selling-pressure\/","title":{"rendered":"Ask Al: Buying and selling pressure"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Buying and selling pressure areas<br>BPA trading room Q&amp;A: June 9, 2016<\/h2>\n\n\n\n<p class=\"content-box-green\">Question: I\u2019m interested in knowing how you know certain areas are going to be bought and sold above and below. I\u2019m sure that you\u2019ve mentioned automated traders before.<br><em>Audio duration: 4min 32sec<\/em><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-Brooks-79-Assessing-Buyers-Sellers-Above-Below-160609.mp3\"><\/audio><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Trading logic<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"312\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/logical-thinking-einstein.jpg\" alt=\"Logical Thinking Einstein\" class=\"wp-image-58742\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/logical-thinking-einstein.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/logical-thinking-einstein-288x300.jpg 288w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/figure><\/div>\n\n\n\n<p>To me, it\u2019s just logic.&nbsp; I\u2019ve made any mistake that you can think of, any mistake that all of you, together, can think of &#8212; I\u2019ve made that mistake and I\u2019ve lost money doing it.&nbsp; But I\u2019m pretty good at observing my stupidity and I\u2019ve learned a lot from it.&nbsp; What I do with every tick during the day is I try to think, \u201cWhat will the bulls do?&nbsp; What will the bears do?&nbsp; What will the swing traders do &#8212; what will the scalpers do?\u201d And I\u2019m thinking about that every tick during the day, and I\u2019m weighing it out in terms of probability, risk, and reward. And I\u2019m taking a lot of trades because I see all kinds of ways to structure trades.&nbsp; And the computers are doing the same thing.&nbsp; They\u2019re looking at risk; they\u2019re looking at reward; they\u2019re looking at probability; and they\u2019re looking at limit orders; and they\u2019re looking at stop orders.&nbsp; Are there more buyers above?&nbsp; Are there more buyers below?&nbsp; On this close of the bar, are there more buyers?&nbsp; Are there more sellers?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Computer algos<\/h3>\n\n\n\n<p>And the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Algorithmic_trading\" target=\"_blank\" rel=\"noopener\">computers are programmed<\/a> to do the same kind of stuff that I\u2019m doing in my head.&nbsp; They do it more accurately; they do it faster; and they can take a lot more trades than I can take.&nbsp; I take a lot of trades, but they can take a lot more.&nbsp; I still don\u2019t know if I\u2019m answering your question, okay, but back to your question.&nbsp; I am interested in how you know certain areas are going to be bought and sold above and below.<\/p>\n\n\n\n<p>You know, I\u2019m always paying attention to support and resistance, and &#8212; especially if there\u2019s a confluence of support and resistance, and especially if the overall context looks good &#8212; 60-minute chart, daily chart, weekly chart, monthly chart.&nbsp; We\u2019re right at an all-time high.&nbsp; I keep talking about the cash index all-time high from a year ago, so, am I looking at the daily chart? Weekly chart? Monthly chart?&nbsp; I don\u2019t know.&nbsp; It\u2019s the same price on all of them, but I do look at &#8212; I do make options trades, like I\u2019m still holding put spreads because the location is really good for put spreads, or for puts. Probability is not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Probability, risk and reward<\/h3>\n\n\n\n<p>I keep talking about how many bull bars we\u2019ve had on the daily chart, but the location is really good. So for me, risk\/reward is very good. But if I get really good risk\/reward the institution selling it to me gets really good probability.&nbsp; So that institution\u2019s probably going to make money; I\u2019m probably going to lose money, but if I do make money I could make pretty decent money.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"177\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure-300x177.jpg\" alt=\"Ask Al Brooks - Trading Buying and Selling Pressure\" class=\"wp-image-58739\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure-300x177.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure-768x453.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure-600x354.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/10\/Ask-Al-79-Buying-and-Selling-Pressure.jpg 991w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>I mentioned before that I think my average entry price is $1.50 and it\u2019s a $5 spread, so I\u2019m paying $1.50 to make $5, so that means my net possible gain is $3.50.&nbsp; So my reward is more than twice my risk.&nbsp; That immediately tells you what my probability is, right?&nbsp; So if my reward is twice my risk, my <a href=\"https:\/\/www.brookstradingcourse.com\/how-to-trade-manual\/traders-equation\/\" target=\"_blank\" rel=\"noopener\">probability is low<\/a>.&nbsp; And that\u2019s true of all trades where you have a very big reward relative to risk, you have low probability.&nbsp; Any time you have high probability, you probably have a stop that\u2019s very far away, right?&nbsp; So buying the 39 low, buying the 42, 41 close, high probability, but stop far away, and probably not much reward left in the trade.<\/p>\n\n\n\n<p>So I\u2019m not sure that I\u2019m answering your question, but I\u2019m trying.<\/p>\n\n\n\n<p class=\"content-box-green\">Next [part of] question:&nbsp; Okay, I\u2019m not interested in programming something.&nbsp; I\u2019m interested in your knowledge about it and how it can be used to be a better trader.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Creative trading &#8212; Use your imagination<\/h3>\n\n\n\n<p>Like I said, what I\u2019m always doing is at every instant I\u2019m imagining what I would do if I was long. I\u2019m imagining what I would do if I was short. And I make trading decisions based upon what I think the majority of traders who are long would do, and the majority of traders who are short would do.&nbsp; Having done this now for 30 years, I have a reasonably good &#8212; and as I said, I\u2019ve been on every winning side, I\u2019ve been on every losing side; I have a pretty good sense of what traders will do, and I try to pay attention.&nbsp; I\u2019m sure I miss 100 things a day, but I see a whole bunch of things, and I see enough things that allow me to make money doing this.&nbsp; And also, I try to stay objective.&nbsp; I don\u2019t say, \u201cOh my gosh, that\u2019s terrible.&nbsp; I\u2019m upset.&nbsp; I\u2019d better buy; I\u2019d better sell.\u201d&nbsp; I\u2019m pretty good at just staying objective all day long.<\/p>\n\n\n\n<p><em>Al Brooks<\/em><\/p>\n\n\n\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Buying and selling pressure areasBPA trading room Q&amp;A: June 9, 2016 Question: I\u2019m interested in knowing how you know certain areas are going to be bought and sold above and below. I\u2019m sure that you\u2019ve mentioned automated traders before.Audio duration: 4min 32sec Trading logic To me, it\u2019s just logic.&nbsp; I\u2019ve made any mistake that you [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-58730","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override","10":"shadow"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/58730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=58730"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/58730\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=58730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=58730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=58730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}