Analyzing key price action formations in Wednesday's market: Brooks

Brooks Price Action Analysis of Wednesday, Sept. 4

pending chart 2302

Higher low major trend reversal, small pullback bull, consecutive buy climax, higher high major trend reversal, lower high major trend reversal, two legged pullback in a bull move

  • Wednesday, September 4, 2013
  • Bar 1 - Yesterday ended always in long and 60min dbpb buy or long. Bear doji so buyers at the low of week of the bar and probably scaling in lower. Bull seasonals for 2-3 more days
  • Bar 2 - Higher low major trend reversal, double bottom 76, reversal bar but bear body. Ok swing or to wait for breakout
  • Bar 3 - Breakout, more up
  • Bar 4 - Follow through, more up
  • Bar 6 - Bear inside bar, fail, failure breakout, but strong bull so buyers at the low of week of the bar and probably scaling in lower and ba.
  • Bar 10 - One bar final flag 6, double top 22, but small pullback bull so buyers at the low of week of the bar and probably scaling in lower. Might enter tight trading range soon so bears might start to scale in above, but better to only buy or long or buy or long pullbacks and scale in. Tight trading range likely after buy climax to resistance = yesterday tight trading range 21
  • Bar 16 - Breakout pullback buy or long, ok buy or long, especially if swing stop
  • Bar 19 - Breakout, probably exhaustion gap, then trading range for hours
  • Bar 24 - Breakout pullback buy or long but tight trading range likely after consecutive buy climax so sellers at the high of the bar and probably scaling in higher, buyers at the low of week of the bar and probably scaling in lower. Then, after 11 am, trend resumption or trend reversal
  • Bar 27 - Another breakout, probably exhaustion gap, but might be measuring gap
  • Bar 31 - Consecutive buy climax, bear two inside bars, bulls continue to buy or long and will scale in lower, bears will sell or short and scale in higher. Trading range likely soon. 29 is best bull bar in 20 bars so market should test its low today.
  • [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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