Sideways price action follows gap down in E-mini: Brooks

Brooks Price Action Analysis of Wednesday, Oct. 23

pending chart 2380

Trend from the first bar bear, higher low major trend reversal, fail, failure bull breakout of possible triangle

  • Wednesday, October 23, 2013
  • Bar 1 - Very overbought consecutive buy climax on 60 mi, fail, failure breakout yesterday above 60 minimum or minutes channel. Doji so buyers below, sellers above
  • Bar 2 - Bear body. Wait
  • Bar 3 - Outside down bar, close on low, more down, always in short
  • Bar 7 - Reversal bar, fail, failure breakout 60 minute 20 bar exponential moving average, 6 sell climax, but 1t body so sideways more likely. Low probability buy or long so swing or wait
  • Bar 9 - Double top 1, but 2 strong bull bars. Back into trading range from 2 days ago so sideways likely. Only buyers at the low of week of the bar and probably scaling in lower if can scale in
  • Bar 13 - Double bottom 7, close on high but middle of trading range. Wait. Probably breakout up and or down then trending trading range day
  • Bar 15 - Possible triangle 1 10 but bull body so low probability sell or short. Swing or wait
  • Bar 17 - Breakout but big tail so low probability
  • Bar 18 - Fail, failure breakout, low probability so swing only. Better to wait. Bear channel so bears will sellers at the high of the bar and probably scaling in higher with stop above 15
  • Bar 22 - Higher low, close on high, ok swing stop, but scale in, then scalp or swing buy or long
  • Bar 24 - Bad follow through, weak breakout since bigtail23
  • [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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