Tight market means fewer set ups

pending chart 2422

Wedge bear flag, higher low major trend reversal, wedge bear flag, double bottom higher low major trend reversal, wedge top, trending trading range day

  • Tuesday, November 26, 2013
  • Bar 1 - Yesterday ended with big two legged pullback in a bull move reversal off 60 minute 20 bar exponential moving average. Bull bar but back in yesterday tight trading range so sideways more likely. Pink line = all-time high
  • Bar 2 - Wedge bear flag 72 79, bear reversal bar, but tight channel so lower probability. Ok swing for test low of yesterday, but sideways more likely. Better to wait
  • Bar 5 - Still always in short since below 2, but micro double bottom and report soon. Scalpers should be flat
  • Bar 6 - Higher low major trend reversal but tight trading range so low probability and better to wait
  • Bar 7 - Outside down bar, ok to sell or short for test low of yesterday and 60 minute 20 bar exponential moving average
  • Bar 8 - Higher low major trend reversal, double bottom low of yesterday at 60 minute 20 bar exponential moving average but tight channel and lots of trading range pa so probably buyers at the low of week of the bar and probably scaling in lower and sellers at the high of the bar and probably scaling in higher and trading range. Swing buy or long for low of the day or wait
  • Bar 13 - 4 consecutive bull bars so probably always in long, but trading range so should get pullback and possible possible triangle. Ok to buy or long for any reason but pullback likely and probably better to wait for pullback to buy or long, or buyers at the low of week of the bar and probably scaling in lower, especially if can scale in lower. 50% chance of test 1t below 9 entry bar low
  • Bar 14 - Breakout pullback buy or long but doji, possible tight trading range. Buy or long only if swing stop since probably will test down and form possible triangle. Probably sellers at the high of the bar and probably scaling in higher for more sideways to down
  • Bar 16 - Higher low major trend reversal, bull outside bar surrounded by inside bars, but tight trading range so need swing stop below 8. Better to scalp and favor longs since always in long
  • Bar 20 - Double top 12, possible possible triangle and test below 9 low, but tight trading range, bad for scalping with stop entries unless using swing stop and always in long. Range only 5.75 points so should get bigger. Since always in long, odds favor new high of the day
  • Bar 21 - Breakout pullback from 19 breakout but tight trading range, bad for scalping with stop entries unless using swing stop. Top of tight trading range so better to wait or swing, but trading range day so better to not swing at high 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.

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

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