Analyzing Wednesday's price action breakout: Brooks

Brooks Price Action Analysis of Wednesday, Nov. 13

pending chart 2409

Expanding triangle bottom, possible triangle, consecutive buy climax, strong breakout to all-time high

  • Wednesday, November 13, 2013
  • Bar 1 - Expanding triangle bottom, but tail. Ok swing buy or long but not yet strong. Might get above 69, then expanding triangle top
  • Bar 2 - Follow through, always in long, buyers at the low of week of the bar and probably scaling in lower, but small bar so still low probability. Stop below 1
  • Bar 4 - Trend from the first bar bull, buyers at the low of week of the bar and probably scaling in lower. Breakout, close above 3 and 2, 9t fail, failure.
  • Bar 7 - Opening reversal at moving average, wedge 2 4, 17t fail, failure. Ok swing sell or short and possible scalp. Back in yesterday trading range so sideways likely
  • Bar 9 - 1st pullback trend from the first bar bull. Ok swing buy or long, stop below 1, but sideways more likely, probably sellers at the high of the bar and probably scaling in higher after wedge to resistance. Back in yesterday trading range
  • Bar 14 - Fail, failure breakout at 3 mas, but 3 bull bars so probably buyers at the low of week of the bar and probably scaling in lower. Low probability sell or short. Still always in long, stop below 8 2 or 1. Target = above 69 top of possible triangle
  • Bar 16 - Two legged pullback in a bear move 14 but tight channel so low probability sell or short and sideways more likely. Better to sell or short with limit order orders. Scale in bears want test 7 high. Channel too weak to buy or long 16 low. Better to buy or long lower, after pullback below 7 high where scale in bears will take profits
  • Bar 19 - Breakout pullback buy or long but 1t body. Probably sellers at the high of the bar and probably scaling in higher, then sideways
  • Bar 22 - Breakout pullback buy or long but doji, 7 bars down so sellers at the high of the bar and probably scaling in higher and sideways. At 3 flat mas so sideways likely. Since trading range likely, 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 26 - Lower high major trend reversal but tight trading range more likely so probably buyers at the low of week of the bar and probably scaling in lower 22 and more sideways. Low probability sell or short
  • Bar 28 - Two legged pullback in a bull move but 2t tail, tight trading range. Swing or wait for breakout. Target above 69 high
  • [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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