Tight trading range, consecutive sell climax, lower low, major trend reversal
- Thursday, March 29, 2012
- Bar 1 - Yesterday had strong selloff and then rally into the close, which was a breakout test or bought of the low of the 3/26 gap. Small doji so buyers below and sellers above. Expanding triangle 30 56 buy but weak signal bar so wait to buy 2nd signal
- Bar 2 - Small bear bar, breakout pullback short. Better to wait to see if get 2nd entry buy
- Bar 3 - Bear bar, 2nd entry buy. Since only 1t tail on top, bears had conviction and would be trapped above so ok buy for swing and scalp. Since small bars and reversals and tails, trading range pa so better to scalp most
- Bar 4 - Strong bull entry bar, but bulls need follow through
- Bar 5 - Bear inside bar so fail, failure breakout, double top 2 but big tail so probably buyers below. Less likely, high of the day
- Bar 7 - Two bar revresal, strong bull bar, small expanding triangle 1 3 inside big expanding triangle 30 56
- Bar 8 - Bear 2 inside bars, double top 4, possible high of the day and ok swing buy, but good buying pressure so ok to wait to see if get buy soon. Still buy above 7
- Bar 9 - Good bar for bears
- Bar 10 - Another bear bar but tail anc close above 6 low so more buying pressure. Market will probably try to form low of the day soon and then test 7 high, which was a good buy signal bar
- Bar 11 - Bull inside bar but tail so not strong buy and better to wait after 7 bar microchannel. Ok short but better to scalp since so much buying pressure today
- Bar 14 - Doji reversal bar, wedge 6 10, final flag 10. Might be low of the day so ok sswing buy, but higher probability to wait to buy above strong bull bar
- [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.com]
