Breaking down Friday's big up day in equities

Brooks Price Action Analysis of Friday, Nov. 8

pending chart 2399

Higher low major trend reversal, lower high major trend reversal, two legged pullback in a bull move buy or long

  • Friday, November 8, 2013
  • Bar 1 - Yesterday ended with a wedge bottom so might get two legs up. Outside up bar but top of tight trading range 73. Probably always in long but better to wait. Possible low of the day. Targets for bulls = prior lower highs, yesterday 33 low breakout point, yesterday 34 high, and open of week = pink line just above that, because bulls want bull body on weekly chart, which closes today
  • Bar 2 - Breakout pullback sell or short but big tail, bottom of tight trading range, strong 1bull bar so low probability and swing only. Better to wait
  • Bar 4 - Moving average gap bar, double top 66, but 2 strong bull bars, tail so low probability and swing or wait
  • Bar 7 - Higher low major trend reversal, double bottom 1, strong bull sellers below or signal bar but 3 bear bars so lower probability. Ok swing buy or long for low of the day
  • Bar 8 - Good entry bar. Might get breakout above 1 and measured move up to 60 minute 20 bar exponential moving average and 33 high
  • Bar 10 - Big breakout, more up, stop below 10
  • Bar 11 - Bull follow through so buyers at the low of week of the bar and probably scaling in lower and more up. Two legged pullback in a bear move sell or short but probably buyers at the low of week of the bar and probably scaling in lower after strong breakout and good context
  • Bar 12 - Breakout pullback buy or long
  • Bar 13 - Consecutive buy climax to 60 minute 20 bar exponential moving average. Probably trending trading range day so might get pullback soon
  • Bar 14 - Fail, failure breakout, 60 minute 20 bar exponential moving average, two legged pullback in a bear move 11, probably trending trading range day, but better to wait since probably buyers at the low of week of the bar and probably scaling in lower. Better to buy or long pullback. Possible tight trading range so bears might start to scale into sell or short above 14 or 15 and bulls will buy or long below bars at bottom of tight trading range. Bottom of trading range might be around 12 low and yesterday 23 low, or 66 or 4 high
  • Bar 15 - Breakout pullback buy or long but tight trading range more likely so bulls need swing stop since bears might 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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