Price action breakdown of index swing lower: Brooks

Brooks Price Action Analysis of Tuesday, Aug. 27

pending chart 2295

Gap down, trend from the first bar bull, or top, wedge bottom, wedge bear flag, expanding triangle bottom, double top, second entry buy bottom of channel, wedge bear flag

  • Tuesday, August 27, 2013
  • Bar 1 - Big gap down, bull body, ok swing buy or long. Tail so ok to wait
  • Bar 2 - Big bull bar, close on high, always in long, stop below 1
  • Bar 3 - Follow through, more up
  • Bar 5 - Or, but trend from the first bar bull, buyers at the low of week of the bar and probably scaling in lower. Doji, so possible sideways into report. Low probability sell or short for high of the day
  • Bar 6 - Another doji so sideways. Might be sellers at the high of the bar and probably scaling in higher
  • Bar 7 - Big bear bar, close on low so breakout, more down, but still always in long
  • Bar 8 - Two legged pullback in a bull move but weak fail, failure bear breakout. Don�t buy or long
  • Bar 9 - Breakout pullback sell or short but probably buyers at the low of week of the bar and probably scaling in lower. Wait or swing sell or short
  • Bar 12 - Bear breakout, sell climax, parabolic wedge after 7 breakout. Sideways likely
  • Bar 13 - Lower low major trend reversal but 8 bars without bull body so low probability. Breakout pullback sell or short but after sell climax and at support so probably buyers at the low of week of the bar and probably scaling in lower.
  • Bar 15 - Breakout but trading range pa and most breakout fail, failure. Sideways likely. Wait for second entry buy or second entry sell
  • [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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