Tuesday price action pushes key stock index lower: Brooks

Brooks Price Action Analysis of Tuesday, Dec. 11

pending chart 2440

Opening Range 20 bar EMA, wedge top, wedge bottom, higher low major trend reversal, double top

  • Tuesday, December 10, 2013
  • Bar 1 - Two legged pullback in a bull move 13. Gap down, yesterday = island top and a double top with the all-time high. Yesterday = slightly lower highs so might be start of a bear trend, especially since double top on daily at top of channel. Bull bar but 2t tail so lower probability. Ok swing buy or long but better to wait. Yesterday = small so might go outside up bar above high of yesterday and all time high = pink line above
  • Bar 2 - Breakout pullback sell or short, ok swing but tails so not high enough probability for scalp
  • Bar 3 - Fail, failure boy low of yesterday second entry buy but tight trading range, bad for scalping with stop entries unless using swing stop. Swing for possible low of the day or wait. Low probability and better to wait
  • Bar 5 - Strong bear bar but tight trading range, bad for scalping with stop entries unless using swing stop. Better to wait for breakout
  • Bar 6 - Or 60 minute 20 bar exponential moving average, strong bull bar, fail, failure breakout low of yesterday, test 60 minute 20 bar exponential moving average, trapped bears. Probably ok buy or long for swing and scalp, possible low of the day
  • Bar 7 - Bull bar, always in long, but tail so weak. Stop below 6. Expanding triangle 2 5 but probably buyers at the low of week of the bar and probably scaling in lower for two legs up after always in long flip
  • Bar 12 - Two inside bars, always in long, ok swing or scalp but need swing stop below 6, and better if can scale in. Might be tight trading range at ma�17 breakout pullback buy or long but top of tight trading range, building selling pressure so low probability
  • Bar 15 - Wedge 2 or 5, then 8, but still always in long and trading range more likely than bear so low probability sell or short
  • Bar 18 - Wedge 5 8, micro double top, big outside up bar but bottom of tight trading range so low probability
  • Bar 21 - Two legged pullback in a bull move 17 but probably sellers at the high of the bar and probably scaling in higher and two legs down from 18 reversal
  • Bar 23 - Breakout pullback sell or short bug just above low of the day and 60 minute 20 bar exponential moving average so low probability and might be buyers at the low of week of the bar and probably scaling in lower. Better to wait for breakout to new low of the day before selling
  • [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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