Price action analysis of trend reversals in yesterday's market

Brooks Price Action Analysis of Tuesday, Aug. 20

pending chart 2287

Higher low major trend reversal, small pullback bull, higher high major trend reversal, lower high major trend reversal

  • Tuesday, August 20, 2013
  • Bar 1 - Yesterday ended with parabolic wedge and fail, failure bear breakout of bear channel so possible test top of channel and bull trend. Bear bar but tail so buyers at the low of week of the bar and probably scaling in lower
  • Bar 2 - Reversal bar but bear body. Higher low major trend reversal, buyers at the low of week of the bar and probably scaling in lower, but 2 bear bars so better to wait
  • Bar 4 - Hlmtr, bull outside bar surrounded by inside bars, ok swing buy or long for possible low of the day and test 59 top of channel. Tight trading range no scalping with stops
  • Bar 7 - Breakout but tails so weak. Trading range pa so far. Always in long, possible measuring gap. Market failed at 15 minute 20 bar moving average plotted on a 5 minute chart yesterday, but more up likely
  • Bar 8 - Bull body so follow through and more up, buyers at the low of week of the bar and probably scaling in lower. Two legged pullback in a bear move 1 but low probability
  • Bar 10 - Breakout pullback buy or long for test 15 minute 20 bar moving average plotted on a 5 minute chart. Might pause there since was resistance for 2 days.
  • Bar 12 - Fail, failure breakout but buyers at the low of week of the bar and probably scaling in lower for test top of channel
  • Bar 13 - Outside up bar, 16t above 4, more up. Possible small pullback bull
  • Bar 14 - Another breakout, but might be exhaustion gap since 11 is probably measuring gap. Consecutive buy climax so might soon get approx. Ten bar, two-legged correction sideways to down
  • Bar 16 - Two inside bars, breakout pullback buy or long, but need swing stop below 13 or 14 since at resistance top of channel and measured move
  • Bar 18 - Outside bar surrounded by inside bars but doji and tight trading range no scalping with stops. Better to buy or long lower. Still always in long so ok swing buy or long. Might be sellers above 17, then trading range
  • [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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