Big gap down dominates Monday price action: Brooks

Brooks Price Action Analysis of Monday, Sept. 30

pending chart 2346

Big gap down, trend from the first bar bull

  • Monday, September 30, 2013
  • Bar 1 - I leave early today. Big gap down so island top on daily, but good bull reversal bar so ok buy or long for swing and possible low of the day. On daily, had bull breakout above bear microchannel 2 days ago so this gap down might be simply pullback from bull breakout
  • Bar 3 - 3 bars up, always in long, buyers at the low of week of the bar and probably scaling in lower with stop below 1. Tail so probably pullback
  • Bar 4 - Two bar revresal but still always in long. Probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 5 - Higher low major trend reversal, 1t fail, failure breakout below 2 entry bar, but bear body. Still always in long, stop below 1
  • Bar 8 - Double top 3 but bull body and far from moving average so low probability sell or short. More likely buyers at the low of week of the bar and probably scaling in lower. Still always in long
  • Bar 10 - Bull bars up, but need follow through
  • Bar 11 - Bear body so weak follow through. Fail, failure breakout but low probability sell or short since only 1t body. Still always in long, stop below 5 or 9
  • Bar 13 - Breakout pullback buy or long. Should get at least above 12 since 60 minimum or minutes bull reversal bar
  • Bar 16 - Fail, failure breakout, moving average, test of gap on daily, two bar revresal, wedge 8 12, but tight channel so probably buyers at the low of week of the bar and probably scaling in lower, but tight trading range or more pullback likely since bears have reasonable setups. Wait for second entry sell to sell or short, but still always in long. Might get test 5 low later today, but 70% chance 1 will be low of the day
  • Bar 17 - Breakout pullback buy or long but probably tight trading range. Low probability. Better to wait
  • Bar 19 - Second entry sell but tight trading range no scalping with stops so swing only or wait. Might test 14 low, 11 low, or even 5 low
  • [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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