Channels focus stock index price action higher: Brooks

Brooks Price Action Analysis of Wednesday, Aug. 28

pending chart 2296

Lower low major trend reversal, spike and channel bull, wedge top. Lower high major trend reversal,

  • Wednesday, August 28, 2013
  • Bar 1 - Daily trendline 1624.30 so magnet. Doji, tight trading range no scalping with stops. Wait
  • Bar 2 - Lower low major trend reversal, big outside up bar, more up. Missed daily trendline by 1t so probably will get there later
  • Bar 3 - Breakout above moving average, close on high, but top of trading range 68 so swing or wait
  • Bar 5 - Moving average gap bar, target below low of the day, ok swing sell or short but more likely buyers at the low of week of the bar and probably scaling in lower around moving average
  • Bar 6 - 3 bear bars, report, so wait.
  • Bar 8 - Two legged pullback in a bull move, always in long, but 2 dojis so low probability, swing only. Bears still on moving average gap bar swing sell or short.
  • Bar 10 - Possible spike and channel bull from strong 2 3 spike
  • Bar 12 - Two legged pullback in a bear move but doji and strong2 3 so buyers at the low of week of the bar and probably scaling in lower and probably channel up to leg 1 equals leg 2 measured move
  • Bar 13 - Breakout pullback buy or long
  • Bar 15 - Fail, failure breakout but tight channel so buyers at the low of week of the bar and probably scaling in lower
  • Bar 17 - Outside bar surrounded by inside bars, tight channel, ba
  • [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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