Price action analysis of sideways market: Brooks

Brooks Price Action Analysis

pending chart 2423

Opening reversal, lower high major trend reversal double top, fail, failure breakout low of the day, double bottom low of yesterday

  • Wednesday, November 27, 2013
  • Bar 1 - Yesterday ended with strong selloff but it held the 60 minute 20 bar exponential moving average. Breakout pullback sell or short but 1t body, just above support so buyers at the low of week of the bar and probably scaling in lower
  • Bar 2 - Opening reversal. Since buyers at the low of week of the bar and probably scaling in lower 1, probably buyers above 2
  • Bar 3 - Breakout, more up
  • Bar 4 - More up, but 2 day trading range so probably sideways soon around high of yesterday
  • Bar 5 - Fail, failure breakout high of yesterday, two legged pullback in a bear move 1, but always in long, tight channel so probably buyers at the low of week of the bar and probably scaling in lower. Wait for second entry sell
  • Bar 8 - Breakout pullback buy or long but top of tight trading range, probably sellers at the high of the bar and probably scaling in higher and more sideways
  • Bar 13 - Possible triangle 7 9 but top of tight trading range. Better to wait
  • Bar 17 - Final flag 13, fail, failure breakout high of yesterday second entry sell but doji, tight trading range, bad for scalping with stop entries unless using swing stop, so low probability sell or short. Better to wait
  • Bar 19 - Breakout pullback buy or long from 15 breakout of possible triangle. Bull bar, ok swing, but tight trading range so lower probability
  • Bar 25 - Lower high major trend reversal double top 15, second entry sell 23, but tight trading range, bad for scalping with stop entries unless using swing stop. Swing or wait. Still on swing buy or long, stop below 10. Breakout mode
  • Bar 29 - Trying for bear breakout, but tail, still in tight trading range. Range only 5 points so should get new high of the day or low of the day
  • [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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