Price action breakdown for Monday's big drop: Brooks

Brooks Price Action for Monday, June 24

pending chart

Trend from the first bar bear, expanding triangle second entry buy and double bottom major trend reversal, strong bull channel

  • Monday, June 24, 2013
  • Bar 1 - Big gap, close near low but tail. More down but might bottom soon
  • Bar 2 - Big bear bar, close near low, probably will have 2nd leg down
  • Bar 3 - Strong bull inside bar, possible low of the day, but probably need 2nd leg down after strong breakout. Low probability buy or long
  • Bar 4 - Breakout pullback sell or short but 2 strong bull bars so low probability and swing or wait
  • Bar 8 - Two bar revresal, second entry buy low of yesterday but not enough buying pressure . Better to wait. Weak bear leg so probably low of the day and trading range soon
  • Bar 10 - Breakout pullback sell or short but tight trading range no scalping with stops. Better to wait. Consecutive sell climax so market might soon form low of the day. Might be trading range day
  • Bar 13 - Wedge bottom 27 but bear bar, tight trading range, so lower probability low of the day swing buy or long.
  • Bar 14 - Double bottom 7, ok swing, low probablilty so swing stop, convert to scalp if quickly goes reward 2 times risk buy or long above, but trading range likely since lots of two-sided trading
  • Bar 17 - Double top 4 but 4 bars up so lp and swing only
  • Bar 21 - Close on low, gap, more down,
  • Bar 22 - Close on low, more down, but weak bear so probably leg in trading range likely so should bottom around low of the day
  • [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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