Stock market sinks from first bar: Brooks

Brooks Price Action Analysis of Tuesday, Oct. 8

pending chart 2357

Fail, failure breakout low of yesterday, double top bear flag, wedge bottom, double top bear flag, final flag, double bottom higher low major trend reversal, moving average gap bar top

  • Tuesday, October 8, 2013
  • Bar 1 - Breakout of bear microchannel so should fail, failure and test below 81 bottom of microchannel, then reverse up. Buyers at the low of week of the bar and probably scaling in lower. Bottom of channel on daily chart is around 1658 = magnet = green line. Should get there within a few days. Blue line = aug 26 breakout point on daily
  • Bar 2 - Two legged pullback in a bull move 81 but big bear bar so low probability and swing.
  • Bar 3 - Fail, failure breakout low of yesterday, second entry buy breakout bear microchannel, but big bar, small tight trading range so low probability and sideways likely. Ok swing buy or long but better to wait
  • Bar 4 - Double top 1 but not at moving average. Tight trading range no scalping with stops. Wait
  • Bar 5 - 2eb3 but top of tight trading range. Tight trading range no scalping with stops. Wait
  • Bar 6 - Wedge 1 4, but bull body. Wait
  • Bar 9 - Double bottom 7 but doji, tight trading range no scalping with stops. Wait
  • Bar 12 - Double top bear flag 6, bear two inside bars, but doji, tight trading range no scalping with stops. Wait for strong breakout up and or down
  • Bar 15 - Higher low major trend reversal, db5, but small signal bar so low probability. Swing only, but better to wait. Might go outside down bar for measured move down
  • Bar 16 - Strong bear breakout, should fall for at least measured move and probably two legs down. Possible trending trading range day
  • Bar 17 - Tail, but more 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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