Breaking down Monday's stock market slide: Brooks

Brooks Price Action Analysis of Monday, Aug. 19

pending chart 2285

Expanding triangle 52 58, lower high major trend reversal, wedge bottom,

  • Monday, August 19, 2013
  • Bar 1 - Expanding triangle 52 58 so lower low major trend reversal at support on daily chart = green line = june lower high pos low of the day, but probably 1 more leg down on daily. One bar final flag, w71 79, reversal bar, but bear body, tight channel so better to wait for more sideways or strong bull breakout, but ok swing
  • Bar 4 - 3 consecutive bull bodies, always in long, buyers at the low of week of the bar and probably scaling in lower, but weak since small bodies
  • Bar 6 - Breakout but top of channel. Stop below 1 5 or 6. Bulls need breakout pullback
  • Bar 7 - Two legged pullback in a bear move sell or short at top of channel. 6 consecutive bull bodies so probably buyers at the low of week of the bar and probably scaling in lower. Low probability sell or short
  • Bar 9 - Breakout pullback buy or long but tail. Wait
  • Bar 10 - Lower high at trendline, second entry sell. Swing only since 6 consecutive bull bars so low probability sell or short
  • Bar 11 - Bear breakout but still always in long as long as stays above 5 low so low probability sell or short
  • Bar 12 - Two legged pullback in a bull move, always in long, but doji. Swing buy or long. Better to wait since low probability buy or long and sell or short
  • Bar 16 - Lower high major trend reversal, but bull body, 5 bars up so low probability
  • Bar 20 - Two legged pullback in a bull move 13 but tail. Still always in long, still on 16 sell or short so best to wait, but ok swing up and or down
  • Bar 25 - Two legged pullback in a bull move 13, wedge 20 23, but tight channel. Better to wait for second entry buy or strong breakout. Still on 16 major trend reversal sell or short. Bear channel so possible sellers at the high of the bar and probably scaling in higher
  • [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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