Price action powers market higher: Brooks

Brooks Price Action Analysis of Thursday, Oct. 17

pending chart 2373

Trend from the first bar bull, small pullback bull, consecutive buy climax, moving average gap bar

  • Thursday, October 17, 2013
  • Bar 1 - Fail, failure breakout below yesterday trading range, but small bar so probably 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. Since bottom ot trading range, better to only sell or short near moving average. Pink line = 1717.75 = all time high close on daily so scale in bulls might take profits there
  • Bar 2 - Close on high, more up. Might get or down at moving average. Always in long
  • Bar 3 - Follow through but at moving average in middle of trading range so should get pullback
  • Bar 4 - Or, possible high of the day, but always in long and sideways more likely
  • Bar 6 - Breakout pullback buy or long but doji, at moving average, so low probability and swing only. Might be sellers at the high of the bar and probably scaling in higher
  • Bar 8 - Two legged pullback in a bear move but bull body so not high enough probability for scalp. Always in long but weak follow through so probably more trading range. Ok buy or long if willing to scale in lower
  • Bar 15 - Wedge 4 8, double top 78, test high of yesterday, two inside bars final flag, but tight channel so low probability. Probably buyers at the low of week of the bar and probably scaling in lower, then trading range. Better to wait to sell or short,
  • Bar 18 - Bull two inside bars, fail, failure wedge, breakout pullback buy or long. Ok swing buy or long if scale in lower. Target = all time high close on daily = pink line
  • Bar 19 - Breakout, test of all time high close, possible exhaustion gap and consecutive buy climax, but nesp. Better to only look to buy or long. Buyers at the low of week of the bar and probably scaling in lower
  • Bar 22 - One bar final flag but 5 bars up, nesp to sell or short. Buyers at the low of week of the bar and probably scaling in lower
  • Bar 23 - Breakout pullback buy or long, ok buy or long if can scale in lower. Next target = all time high at 1723.75 = blue line
  • [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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