Market forms triangle, breakouts fail

Brooks Price Action Analysis of Friday, Oct. 4

pending chart 2354

Trend from the first bar bull, or, two legged pullback in a bear move

  • Friday, October 4, 2013
  • Bar 1 - I leave early today, but will be back full time on monday. yesterday ended with higher low major trend reversal and possible double bottom higher low major trend reversal. Bear doji in middle of 40 bar trading range so probably buyers below, sellers above
  • Bar 2 - Another doji, 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
  • Bar 3 - Or. Since buyers at the low of week of the bar and probably scaling in lower 2, probably ba 1 but middle of trading range so swing buy or long or wait
  • Bar 6 - Double top bear flag 54, two legged pullback in a bear move 2, 60 minute 20 bar exponential moving average, possible buy vacuum test of resistance. Swing only. More likely buyers at the low of week of the bar and probably scaling in lower and sideways
  • Bar 7 - Breakout pullback buy or long but 2 bear bars at top of trading range so probably sellers at the high of the bar and probably scaling in higher for tight trading range
  • Bar 10 - Final flag 7, but tight channel so probably buyers at the low of week of the bar and probably scaling in lower.
  • Bar 12 - Breakout pullback buy or long but getting small bars and bear bars so prpb trading range soon. Ba only if swing stop
  • Bar 14 - Two legged pullback in a bear move 55 yesterday, spike and channel wedge 6 10, but tight channel. Sideways more likely than high of the day so swing or wait
  • Bar 19 - Moving average but 6 bars down after wedge so probably sellers at the high of the bar and probably scaling in higher and tight trading range. Bears want test 7 bottom of channel
  • Bar 20 - Big outside down bar, low probability bar so probably two legs down
  • Bar 21 - Fail, failure bear breakout, but tail, strong breakout, probably sellers at the high of the bar and probably scaling in higher and two legs down
  • [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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