Market price action reverses on open, reveals wedge bottom

Brooks Price Action Analysis of Wednesday, Nov. 20

pending chart 2416

Opening reversal, fail, failure breakout, lower high major trend reversal, parabolic wedge bottom

  • Wednesday, November 20, 2013
  • Bar 1 - Yesterday was a trading range day and every breakout failed. Strong bull reversal bar, but breakout of 70 trading range so low probability. Better to wait
  • Bar 2 - Expanding triangle 63 70, outside down bar, but middle of trading range and at moving average. Wait
  • Bar 3 - Opening reversal but doji. Wait
  • Bar 4 - Opening reversal, two legged pullback in a bull move 1, outside up bar, but middle of trading range and trading range pa. Wait, but probably always in short
  • Bar 5 - Outside down bar, more trading range pa. Limit order order market so far. Breakout mode. Bulls want opening reversal and test high of yesterday, bears want breakout and test low of yesterday
  • Bar 6 - Big outside up bar but tight trading range no scalping with stops. Wait. Trading range so possible trending trading range day
  • Bar 8 - Opening reversal, wedge 2 3 bull flag, but tight trading range, bad shape so low probability. two inside bars but doji. Better to wait for breakout up and or down or for better sellers below or signal bar
  • Bar 10 - Double top but doji. Breakout mode
  • Bar 11 - Big bull bar so buyers buying as it forming, but need follow through. Big tail, but probably more up. Ok buy the close but stop below 6, maybe 11 or 9
  • Bar 12 - Fail, failure breakout high of yesterday, big bar, bear body, double top high of yesterday lower high major trend reversal, but doji, low probability sell or short. Probably buyers at the low of week of the bar and probably scaling in lower, but better to wait.
  • Bar 13 - Big bear bar, close on low, more down
  • [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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus