Breakout failure, trend reversal highlight price action: Brooks

Brooks Price Action Analysis of Tuesday, Nov. 12

pending chart 2403

Fail, failure breakout low of yesterday, higher low major trend reversal, two legged pullback in a bear move

  • Tuesday, November 12, 2013
  • Bar 1 - Yesterday ended with a tight trading range. Gap down to 60 minute 20 bar exponential moving average but doji so probably sellers at the high of the bar and probably scaling in higher, maybe near 14l. Two legged pullback in a bull move 14 but doji so sideways likely. Ok swing buy or long. Always in long above. Top of 3 week trading range so probably will pullback to middle of trading range soon, even if get bull breakout
  • Bar 3 - Close above 2 so possible measuring gap. Yesterday tight trading range = magnet, so resistance
  • Bar 4 - Opening reversal at moving average, but low probability and probably buyers at the low of week of the bar and probably scaling in lower after 4 bars up
  • Bar 5 - Trend from the first bar bull so buyers at the low of week of the bar and probably scaling in lower but only 1 trend bar today so lots of trading range pa and might test down so stop below 1. Trading range pa so probably limit order order market with sellers at the high of the bar and probably scaling in higher and buyers at the low of week of the bar and probably scaling in lower
  • Bar 7 - Opening reversal, outside down bar, but tail, tight trading range, weak sellers below or signal bar. Trading range pa. Should test 2 reversal bar low and might be buyers at the low of week of the bar and probably scaling in lower for more sideways
  • Bar 8 - Fail, failure breakout but doji. Wait. Probably buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher
  • Bar 9 - Higher low major trend reversal, breakout pullback buy or long from 1 two legged pullback in a bull move, but outside up bar, 2 dojis so low probability
  • Bar 12 - Two legged pullback in a bear move 5, but doji and strong bull breakout 10. In yesterday tight trading range so probably sellers at the high of the bar and probably scaling in higher and sideways, but always in long, stop below 10
  • Bar 14 - Two legged pullback in a bull move but doji, tight trading range. Probably sellers at the high of the bar and probably scaling in higher and sideways. Only buy or long if swing stop. Better to wait since top of trading range
  • Bar 16 - Two legged pullback in a bear move 6, fail, failure two legged pullback in a bull move, but doji sellers below or signal bar so low probability. Better to wait, but might become bear channel and high of the day
  • Bar 19 - Breakout pullback sell or short but just above 10 low support. Wait
  • [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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