Late bearish breakout takes stocks lower: Brooks

Brooks Price Action Analysis of Monday, Aug. 26

pending chart 2293

Opening Range, buy climax, final flag top, lower high major trend reversal, late bear breakout

  • Monday, August 26, 2013
  • Bar 1 - Fail, failure breakout high of yesterday and high of last week but tail, tight trading range no scalping with stops. Probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 2 - Or but 1t body. Probably more up since buyers at the low of week of the bar and probably scaling in lower 1
  • Bar 5 - High of yesterday second entry sell, micro double top, swing only since weak signal bar, always in long
  • Bar 7 - Breakout pullback buy or long, good bull bar but late in bull channel so swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk or wait
  • Bar 10 - Wedge 1 4, good bear bar, ok swing sell or short
  • Bar 11 - Bull inside bar, breakout pullback buy or long, but top of channel, increasing sgp78 1 6 10, so might be sellers at the high of the bar and probably scaling in higher. Channel, so better to buyers at the low of week of the bar and probably scaling in lower or sellers at the high of the bar and probably scaling in higher, or wait for strong breakout up and or down
  • Bar 14 - Breakout pullback buy or long but top of channel so probably sellers scaling in above for scalp
  • Bar 15 - L4 but doji and tight channel so buyers at the low of week of the bar and probably scaling in lower. Low probability sell or short. Still always in long
  • Bar 19 - L4 4 11 15, but 1t body so might go above 1-2t after entry so need stop 3-4t above, but better wait
  • Bar 23 - Second entry sell but doji so low probability. Probably buyers at the low of week of the bar and probably scaling in lower. Trading range pa so probably trading range day and should test down at some point
  • Bar 25 - Breakout but weak and late in channel so probably exhaustion gap and then approx. Ten bar, two-legged correction sideways to down
  • [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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