S&P 500 price action saw possible bull flag: Brooks

Brooks Price Action Analysis of Friday, Nov. 15

pending chart 2412

Opening reversal, wedge top, possible triangle bull flag

  • Friday, November 15, 2013
  • Bar 1 - Yesterday ended with weak bull channel so probably trading range. Fail, failure breakout but tail so buyers at the low of week of the bar and probably scaling in lower
  • Bar 3 - Opening reversal but 2 dojis so low probability, especially since top of weak channel, swing only. Sideways more likely. Probably always in long
  • Bar 5 - Fail, failure breakout high of yesterday second entry sell but doji, tight trading range no scalping with stops. More sideways likely
  • Bar 6 - Bull reversal bar but top of tight trading range and weak channel so low probability and possible trap. Odds favor early high of the day after weak channel
  • Bar 8 - Bull inside bar, close on high, bull channel, ok swing buy or long, but tight trading range so not high enough probability for scalp. Stop below 8 or 7
  • Bar 9 - Another bull inside bar, always in long. Swing, but higher probability to wait for breakout, especially since top of weak bull channel
  • Bar 13 - Close on low, double top 9 12, but tight trading range no scalping with stops, always in long. Ok swing sell or short below
  • Bar 14 - Breakout pullback buy or long at moving average. Still always in long, higher highs, higher lows, bull signal bars. Ok swing buy or long but higher probability to wait
  • Bar 18 - Breakout pullback buy or long but doji, top of channel. Range only 3.75 points so will get bigger, but don�t know yet if breakout or channel
  • Bar 24 - Wedge 1 9 24, wedge 16 21, three inside bars in a row final flag, bear bar, top of channel, but tight channel. Ok sell or short but better to use stop at least 3t above 24 since small sellers below or signal bar and tight channel and might reverse 1-3t above 24 and then back down
  • Bar 25 - Small breakout, but ok sell or short and probably 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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