Analyzing Tuesday's downward price action: Brooks

Brooks Price Action Analysis of Tuesday, July 17

pending chart 2221

Double top major trend reversal, double top with high of year, lower high major trend reversal, consecutive sell climax at 60 minute 20 bar exponential moving average, lower low major trend reversal, higher low major trend reversal

  • Tuesday, July 16, 2013
  • Bar 1 - Double top major trend reversal high of yesterday, 1t below high of year = pink line. Ok swing sell or short for possible high of the day. Bottom of tight trading range so better to not scalp
  • Bar 2 - Follow through, always in short, trendline magnet below
  • Bar 3 - Close on low but at trendline more down
  • Bar 4 - Doji so might bounce on report. Ok to get flat or exit part of swing sell or short
  • Bar 6 - Or at trendline, three inside bars in a row, breakout mode, report on 7. Better to go flat. Possible low of the day but wait for bull breakout since 1 � 3 = strong selling pressure
  • Bar 7 - Bull breakout. Big down, big up so sideways likely. Still always in short, but bad bar for bears
  • Bar 9 - Lower high major trend reversal, but 6 bars without bear body so lp. Probably buyers at the low of week of the bar and probably scaling in lower and sideways more likely
  • Bar 12 - Bear outside bar surrounded by inside bars but tails, too much buying pressure. Lp. Wait
  • Bar 13 - Db6 but bear doji. Wait.
  • Bar 15 - Double top 9 at moving average so two legged pullback in a bear move sell or short, but bull body. Probably buyers at the low of week of the bar and probably scaling in lower. Lp swing sell or short. Better to wait
  • Bar 17 - Outside down bar. Can sell or short below 14 double bottom or wait for breakout
  • [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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