Reversals, possible triangle form in Thursday price action: Brooks

Brooks Price Action Analysis of Thursday, Oct. 31

pending chart 2391

Fail, failure breakout trading range, lower low major trend reversal, higher high major trend reversal, possible triangle, parabolic wedge

  • Thursday, October 31, 2013
  • Bar 1 - Yesterday ended with trading range. Bulls want to get above 55, bears want breakout below low of yesterday. Bear bar in middle of trading range so low probability.
  • Bar 2 - Two legged pullback in a bull move 78, close on high, ok scalp
  • Bar 3 - Close on high, always in long, probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 4 - Fail, failure breakout trading range, strong bear reversal bar, but probably buyers at the low of week of the bar and probably scaling in lower so swing sell or short or wait
  • Bar 5 - Big bear bar, double bottom 1, probably sellers below or signal bar for test low of the day
  • Bar 6 - Breakout but tail. Sell the close for test low of yesterday
  • Bar 8 - Fail, failure boloy, micro double bottom but doji and strong momentum so sellers at the high of the bar and probably scaling in higher
  • Bar 10 - Breakout pullback sell or short but dojis at bottom of trading range so low probability and probably sideways
  • Bar 13 - Double top 10 at moving average but tight trading range no scalping with stops. Probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 15 - Lower low major trend reversal, low of yesterday second entry buy, two bar revresal. Tight trading range no scalping with stops but possible low of the day so swing or wait. 58 is strong so might need one more leg down to form a wedge bottom
  • Bar 18 - Double top 13 but 3 consecutive bull bars and lower low major trend reversal so probably always in long, weak leg up so probably in trading range and might get one more new low. Breakout pullback buy or long but at moving average and 1 low so low probability. Only buy or long if swing stop and scale in lower, stop below 14. Might be sellers at the high of the bar and probably scaling in higher
  • [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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