Double bottom highlights Monday price action: Brooks

Brooks Price Action Analysis of Monday, Oct. 28

pending chart 2386

Final flag top, double bottom, wedge top

  • Monday, October 28, 2013
  • Bar 1 - 3 day bull channel, which is unusual so should breakout up and or down today, and odds favor down since a bull channel is usually a bear flag. Bulls will continue to buy or long sharp selloffs for swings and scalp, and bears will scale into shorts at new highs for scalps. Thurs is end of month and last month high about 30 points below = magnet since bears do not want monthly gap up. Close on low but tight channel, moving average so low probability. Wait. Should test down today or tomorrow, but not strong top yet
  • Bar 3 - Two legged pullback in a bull move, close on high, but tight trading range, top of channel so low probability. Better to wait
  • Bar 6 - Double top high of yesterday, second entry sell, but tight trading range no scalping with stops. Wait. Breakout mode
  • Bar 7 - Close on high, but top of tight trading range and channel. Always in long, swing buy or long or wait
  • Bar 11 - Final flag tight trading range 8, but 4 consecutive bull bars, always in long, buyers at the low of week of the bar and probably scaling in lower, but stop below 7. Low probability sell or short. Better to wait
  • Bar 12 - Close on low so stronger sell or short, but still always in long so swing only or wait
  • Bar 17 - Bear breakout but still higher highs and higher lows so still channel. Late in channel so trading range likely soon
  • Bar 18 - Follow through but tail at 15 minute 20 bar moving average plotted on a 5 minute chart so might bounce to test 12 low. Sellers at the high of the bar and probably scaling in higher for two legs down, stop above 17 or 10
  • Bar 19 - Double bottom 2, fail, failure breakout, close on high, double bottom 2, but always in short, sellers at the high of the bar and probably scaling in higher and sideways to down likely. Bears need wide stop, else wait. Bulls need second entry buy or breakout
  • Bar 22 - Tight trading range at 15 moving average. Probably buyers at the low of week of the bar and probably scaling in lower. Might get bounce to test 12 sellers below or signal bar low. Still always in short
  • Bar 24 - Strong reversal up, big bull bar, should test 12 low, but odds then favor two legs down. Bears want lower high major trend reversal = head and shoulders top
  • [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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