Trend, failure, reversal highlight E-mini price action: Brooks

Brooks Price Action Analysis of Tuesday, Oct. 23

pending chart 2378

Trend from the first bar bull, fail, failure breakout of top of bull channel, higher low major trend reversal, wedge lower high, bull channel

  • Tuesday, October 22, 2013
  • Bar 1 - Very overbought consecutive buy climax on 60 mi, 60 minimum or minutes trend channel line above. Gap up, 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 4 - Tight trading range no scalping with stops. Wait to see breakout
  • Bar 5 - Big bull bar, close near high, more up, at least 2 points
  • Bar 6 - Fail, failure breakout but tail. Should go at least 2 points above close of 4
  • Bar 7 - Close on high, more up
  • Bar 10 - At top of channel, tail. Should get pullback soon and then trading range for hours, then either trend resumption or trend reversal
  • Bar 11 - Fail, failure breakout top of channel, bear reversal bar, but bulls will buy or long 1st pullback and scale in. Low probability to sell or short with stop
  • Bar 13 - 3 bars down so probably more sideways to down
  • Bar 14 - Breakout pullback sell or short but doji, small bars. Probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 15 - Big bear breakout, close on low, probably more down. Should test bottom of channel
  • Bar 16 - Another big bear bar, always in short, stop above 15. 70% chance 11 = high of the day. Moving average, but more down likely
  • [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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