Hi Merchant,
Bit tied with personal chores , so right now not in position to post regularly, for sure when time permits will share my little knowledge on Al Brooks set ups. As I have no idea what all you read & trade, today giving you some idea about Measured move, this help us in remain in trade in strong trend as well as appropriate point for taking profits & exits. On my personal experience it works like charm on BNF, NIFTY , & in past also I tested on stock, there too it worked perfectly. Measured move can be calculated based on swing high/low, spikes, open of the day to High/low of day, range high/low, wedges ,double top/bottoms & other patterns.
From the calculation point of view we should take conservative figure first & if move continues then we can take larger targetfor e.g. calculate open & close first, then high & low & these calculations we need to do real time as per price action & accordingly we can adjust our targets.
Below is the chart of Hindalco for reference.
Yday we had gap down followed by two trend bars, a trend from open day, it tried to reverse but failed at 123.50..a b/o test , followed by prolonged sideways, then it broke down. Now see yday high was 124.5 & the low of 9.20 bar was 122.1. once 12.50 bar strongly broke its low , we can expect Measured move down based on HOD & the low of 9.20 bar, i.e. From A-B, 124.5-122.1= 2.4, points, so our expected swing target is around 119.7, that we got around 2 Pm, at C . You can observe after Measured move target it strongly broke the major trendline & was able to close above MA line, prior to that we dont have single close above MA, showing the strength of trend & the majority of player either exited in that zone or initiated the long.
From D-E, was good spike, so if we get follow-up this should be our first target, that we will look for today i.e. from 119.6- 121.15, 1.4-1.55point, i.e. 121.15+ 1.4= 122.55 at point F & Hindalclo topped there, showing the strength of prevailing trend .
Today also we had the bearish biases, and once it broke down our first target was from Point F-G, that we got on 13.05 bar at H, but it not reverse from there, so we can look for bigger target, since this move continues from Yday & yday we had strong spike down from I-J, so this is our next target, i.e. from 123-120.40 or 120.25, i.e.2.4, means 117.80- 60 zone, & today LOD was 117.85 & we got our target at K.
Similar kind of Measured move you can do for say in BNF today, today High was 11680 & first bar was strong trend bar & once market broke below it close we can expect the measured move, first bar close was 11555,
11680-11555= 125 point, 11555-125= 11430, today LOD was 11422 & you can see very strong reversal bar in BNF after hitting the target, also it was b/o test & filled the gap too.
Hope this might help.
Regards
