Price failures highlight market action on Wednesday: Brooks

Brooks Price Action Analysis of Wednesday, Oct. 30

pending chart 2388

Fail, failure breakout channel, wedge bull flag, lower high major trend reversal, two legged pullback in a bull move at bottom of channel, fail, failure wedge bottom, fail, failure bear breakout

  • Wednesday, October 30, 2013
  • Bar 1 - Fail, failure breakout of channel, two inside bars final flag 80 but doji so weak sellers below or signal bar and probably buyers at the low of week of the bar and probably scaling in lower and sellers at the high of the bar and probably scaling in higher. Gap above top of 5 day bull channel so probably will fail, failure soon and test bottom of channel. Fomc report 11 am today.
  • Bar 2 - Higher high major trend reversal, final flag yesterday ttr76, close on low, ok swing sell or short below but low probability
  • Bar 4 - Opening reversal but 3 dojis so far so low probability and swing only, more sideways likely. Bears still on swing sell or short, stop above 1. Best = wait
  • Bar 5 - Fail, failure breakout second entry sell but tight trading range no scalping with stops. Always in short but low probability so far. Good location for puts since to overbought and top of channel
  • Bar 9 - Two legged pullback in a bull move, fail, failure breakout, bad follow through for bears so probably bear leg in trading range. Tail, trendline, 15 minute 20 bar moving average plotted on a 5 minute chart just below so probably more down
  • Bar 11 - Wedge 3 10, two legged pullback in a bull move but small sellers below or signal bar and just above 15 minute 20 bar moving average plotted on a 5 minute chart and trendline so probably sellers at the high of the bar and probably scaling in higher for a little more down. Low probability buy or long
  • Bar 15 - Wedge bull flag 3 10 at 15 minute 20 bar moving average plotted on a 5 minute chart and trendline even tho 10 = double bottom, outside up bar, but tight trading range no scalping with stops. Low probability buy or long so swing or wait
  • Bar 17 - Lower high major trend reversal, fail, failure breakout, double top 5, but strong 15 so probably buyers at the low of week of the bar and probably scaling in lower but ok swing sell or short
  • Bar 18 - Breakout pullback buy or long but top of tight trading range and tight trading range no scalping with stops. Not strong swing in middle of trading range day. Better to wait
  • Bar 20 - Lower high major trend reversal second entry sell. Ok swing but low probability
  • Bar 22 - Breakout, probably will test below low of the day
  • [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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