Breaking down Thursday's E-mini price gains: Brooks

Brooks Price Action Analysis of Thursday, Oct. 25

pending chart 2382

Opening reversal, higher high major trend reversal, two legged pullback in a bull move, wedge top

  • Thursday, October 24, 2013
  • Bar 1 - Yesterday was bear breakout of bull microchannel on daily so should turn up soon. Yesterday = weak bear channel. Fail, failure breakout high of yesterday but tail so low probability sell or short and probably buyers at the low of week of the bar and probably scaling in lower near moving average for possible opening reversal
  • Bar 4 - Opening reversal but 2t tail so lower probability
  • Bar 8 - Double bottom 4 at support but big reversal bar at top of trading range so low probability
  • Bar 11 - Double top, ok swing sell or short but 6 of past 7 bars = bull bars so low probability and more sideways likely
  • Bar 16 - Double top pullback so possible triangle 1 11. Weak bull channel that has lasted about 80 bars so odds favor bear breakout. Ok swing sell or short. Tight trading range no scalping with stops. Still on swing buy or long with stop below 13
  • Bar 20 - Breakout, but not big. Possible measuring gap. Always in long, ok swing buy or long butlp
  • Bar 21 - Fail, failure breakout, weak bear channel, but tight channel, doji sellers below or signal bar so low probability. Better to wait. Might be buyers at the low of week of the bar and probably scaling in lower but low probability for bulls and bears
  • Bar 23 - Bull outside bar surrounded by inside bars but swing only since channel has lasted 80 bars so odds increase it will become trading range and sellers at the high of the bar and probably scaling in higher
  • Bar 29 - Fail, failure breakout double top, second entry sell, but tight trading range no scalping with stops. Tight channel, probably buyers at the low of week of the bar and probably scaling in lower and more sideways. Better to wait to sell or short. Possible final flag and one more push up
  • Bar 36 - Lower high major trend reversal double top 29. Low probability so swing or wait
  • Bar 38 - Bear follow through, probably more down. Stop above 36 or 37. Should hit bottom of channel
  • [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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