Simple price action carries day higher: Brooks

Brooks Price Action Analysis of Tuesday, Sept. 17

pending chart 2322

Wedge bottom, trend from the first bar bull, trend resumption, wedge top

  • Tuesday, September 17, 2013
  • Bar 1 - Yesterday ended with wedge bottom, and this is a bull breakout. Always in long for test trendline and 51 high, then 34 close. Should get two legs down
  • Bar 2 - Bull follow through, more up, magnets above. Green line = august high where market failed yesterday at 34
  • Bar 6 - Bear reversal bar but tqb bull so buyers at the low of week of the bar and probably scaling in lower
  • Bar 11 - Two legged pullback in a bear move but 2 dojis, small pullback bull, target above, so buyers at the low of week of the bar and probably scaling in lower
  • Bar 13 - Inside bar, small tight trading range, target above, but buy or long only if swing stop and scale in lower. Two-sided trading since 4 so bears will start to scale into sell or short above
  • Bar 14 - Double top 34, second entry sell 11, wedge 5 10, but tight channel and target above. Tight trading range no scalping with stops, probably small pullback, then one more try to hit 34 high. Less likely, high of the day, like yesterday 34. Tight trading range so better to wait or enter with limit order orders, buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher, scaling in
  • Bar 20 - Lower high major trend reversal but not enough bars so probably trading range. Might test 7 low. Less likely, high of the day
  • Bar 22 - Two legged pullback in a bull move at moving average, target above, always in long, but tight trading range no scalping with stops. Ok swing, but tight trading range so possible final flag. Bears want lower high major trend reversal and high of the day
  • Bar 26 - Tight trading range, breakout mode, bulls want bull flag and trend resumption, bears want a major trend reversal and trend reversal
  • Bar 33 - Small higher low. Most close above moving average, always in long. Odds slightly favor bulls, but 50% tight trading range breakout fail, failure
  • Bar 41 - Trend resumption, breakout, always in long, stop below 38. 50% chance of fail, failure, and target yesterday 34 high only 4t higher so swing better than scalp
  • [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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