Sideways price action characterizes Tuesday trading: Brooks

Brooks Price Action Analysis of Tuesday, Dec. 17

pending chart 2451

Trend from the first bar bear, wedge bottom, buy climax double top, wedge bull flag, lower high major trend reversal

  • Tuesday, December 17, 2013
  • Bar 1 - Yesterday was trading range day with 56 lower high major trend reversal. Bulls want trend resumption up after yesterday bull reversal, bears want trend resumption down. Big bear bar, probably always in short, but bottom of trading range, 60 minute 20 bar exponential moving average so swing or wait. Tomorrow = fomc
  • Bar 2 - Bear follow through, always in short, stop above 1 or 2, but breakout below yesterday trading range so low probability sell or short
  • Bar 3 - Two legged pullback in a bull move 44, trend channel line, but doji and 2 strong bear bars so low probability buy or long and probably sellers at the high of the bar and probably scaling in higher
  • Bar 4 - Doji, probably buyers at the low of week of the bar and probably scaling in lower and sideways
  • Bar 5 - Fail, failure breakout low of yesterday second entry buy, two legged pullback in a bull move 44, possible low of the day. Ok swing buy or long but dojis so low probability. Higher probability to wait for strong bull breakout
  • Bar 6 - Breakout but tail
  • Bar 7 - Two legged pullback in a bear move 4, bear bar, but buyers at the low of week of the bar and probably scaling in lower after reversal up from low of yesterday. Weak bottom and breakout so sideways likely
  • Bar 8 - Wedge bear flag 4 6 8, but sideways more likely since trading range pa
  • Bar 9 - Outside up bar but close not above. Tight trading range, bad for scalping with stop entries unless using swing stop. Wedge 4 6 8 9, but tight trading range, bad for scalping with stop entries unless using swing stop
  • Bar 11 - Higher low major trend reversal, but 2t tail so low probability. Better to wait
  • Bar 12 - Breakout pullback sell or short but bottom of tight trading range so swing or wait
  • [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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