Price action pushes stock market lower Thursday: Brooks

Brooks Price Action Analysis of Thursday, Nov. 7

pending chart 2396

Fail, failure breakout high of yesterday, consecutive sell climax, double top bear flag, final flag bottom, outside down bar on weekly at all-time high so possible high of next many weeks

  • Thursday, November 7, 2013
  • Bar 1 - Breakout above all time high = pink line but tail below so probably buyers at the low of week of the bar and probably scaling in lower. Low probability sell or short
  • Bar 2 - Breakout pullback buy or long but tail and at resistance = high of yesterday and all time high so low probability, better to wait
  • Bar 3 - Fail, failure breakout high of yesterday second entry sell but bull body
  • Bar 4 - Outside down bar so sideways more likely, but fail, failure breakout top of channel close on low so ok swing sell or short below. Always in short
  • Bar 5 - Big bear bar, more down. Tail at moving average, lots of trading range pa for a month, so might go sideways soon
  • Bar 7 - Opening reversal at moving average but doji, 3 strong bear bars so probably sellers at the high of the bar and probably scaling in higher. Low probability buy or long
  • Bar 8 - Strong bear bar, more down, sell the close
  • Bar 9 - Tail but sellers at the high of the bar and probably scaling in higher, more down. Might enter trading range within 1 � 3 bars
  • Bar 10 - Consecutive sell climax at low of yesterday so might enter trading range soon. Only sell or short if scale in higher. Better to wait
  • Bar 11 - Strong bull reversal bar but 1st reversal up so probably sellers at the high of the bar and probably scaling in higher. Possible low of the day
  • Bar 13 - Consecutive sell climax, possible low of the day or low of next couple of hours
  • [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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