Breaking down the price action in Thursday's big drop: Brooks

Brooks Price Action for Thursday, June 20

pending chart 2148

Gap down, double top, wedge and lower low major trend reversal, moving average gap bar, fail, failure double bottom, wedge bottom

  • Thursday, June 20, 2013
  • Bar 1 - Yesterday ended with a strong bear. Big gap but tail so trading range bar. Near bottom of 60 minimum or minutes trading range. Buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher
  • Bar 3 - Two bar revresal, fail, failure gap. Ok swing, low probablilty so swing stop, convert to scalp if quickly goes reward 2 times risk for possible low of the day
  • Bar 5 - Double top 1 so ok swing sell or short for possible high of the day. Bad follow through. Ok to exit. Trading range likely until closer to moving average
  • Bar 7 - Close on low, probably more down. Gap on daily 1588.25 magnet = pink line
  • Bar 8 - Small reversal bar but tail. Swing buy or long above, sell or short below. Trading range pa so far
  • Bar 11 - Bull inside bar but tail. Weak bottom. Probably more down. Swing, low probablilty so swing stop, convert to scalp if quickly goes reward 2 times risk sell or short
  • Bar 14 - Lower low major trend reversal, wedge 2 10, consecutive sell climax near support, but 10 bar microchannel, tail so lp. Swing, low probablilty so swing stop, convert to scalp if quickly goes reward 2 times risk or wait. Not strong bear so probably trading range soon
  • Bar 17 - Double top 11, ok swing for test of gap on daily, but 4 bull bars, weak bear, so trading range likely and buyers at the low of week of the bar and probably scaling in lower
  • Bar 19 - Close on low, more down. Magnet below
  • Bar 21 - 4t tail, ok swing but probably more down. Trading range pa so could reverse up at any time.
  • Bar 23 - Lower low major trend reversal, wedge 2 14, micro double bottom, but tail. Ok swing buy or long for test moving average, trendline, 18 high. Still lp
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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