AL brooks stock four stages

 Al Brooks' price action trading methodology doesn't have "four stages" of stock movement, but rather describes a market cycle that moves through phases of accumulation, markup (or trend), distribution, and markdown (or trend reversal). His system focuses on reading price action bars, identifying patterns like trends and trading ranges, and recognizing setups for both trend continuation and reversal. 

Market Cycle Stages (General Market, Not Al Brooks Specific)

While not a specific Brooks model, the four general stages of a market cycle are: 

1. Accumulation: Smart money is buying, often unnoticed, as a previous downtrend slows.
2. Markup: A clear uptrend begins, driven by increasing buying interest.
3. Distribution: The upward momentum slows, and smart money begins to sell as the market becomes overbought.
4. Markdown: A clear downtrend develops as selling pressure increases, and the market moves lower.

How Brooks' Concepts Apply

Al Brooks' approach differs by focusing on the specific price action patterns that indicate these stages:

• Trends: 

  Brooks identifies trends by analyzing the size of bars, pullbacks, and breakouts. 
• Trading Ranges: 

  He looks for overlapping bars with small bodies and prominent tails, signaling indecision or a pause in the trend. 
• Reversals: 

  He identifies reversal patterns and the components of major trend reversals, including breakouts, pullbacks, and trend resumption. 
• Leg Counting: 

  For breakouts, Brooks uses leg counting to assess the probability of a second leg occurring, which helps determine if a trade setup has a high probability of success. 

In essence, Brooks teaches traders to understand the "story" told by the bars on a chart to anticipate where the market is heading, using these price action concepts rather than a predefined four-stage model.