Breaking down the Wednesday surge in stocks: Brooks

Brooks Price Action Analysis of Wednesday, Dec. 18

pending chart 2459

Double top 57, opening reversal, possible triangle top, wedge bear flag, parabolic wedge bottom, wedge bear flag, parabolic wedge bottom, fail, failure breakout bottom of trading range, huge bull reversal

  • Wednesday, December 18, 2013
  • Bar 1 - Fomc 11 am. 3 day possible triangle. Top of trading range. Tails so buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher
  • Bar 3 - Double top 57, strong bear bar, ok swing sell or short and maybe scalp
  • Bar 4 - Bad entry bar but still sell or short, stop above 3. Trading range start
  • Bar 6 - Opening reversal at moving average, two legged pullback in a bull move 1. Most bears will exit. Ok swing buy or long, but probably higher probability to wait for breakout above high of the day
  • Bar 9 - Double top 3. 50% chance we�ve seen either high of the day or low of the day, even tho tight trading range and breakout mode
  • Bar 14 - Possible triangle 3 9, breakout mode, still on 3 sell or short and 6 buy or long. Low probability sell or short so swing or wait
  • Bar 18 - Wedge 1 5, fail, failure breakout, two legged pullback in a bull move 12, but 3 strong bear bars so low probability and probably sellers at the high of the bar and probably scaling in higher for move to 4 points below 3
  • Bar 19 - Breakout pullback sell or short, always in short, but doji, weak breakout, so probably buyers at the low of week of the bar and probably scaling in lower. Ok swing sell or short, stop above 15. Bulls need better bottom or breakout
  • Bar 23 - Wedge bear flag 18 20, but tight trading range so lower probability. Ok swing for test close of yesterday, but less reliable scalp
  • Bar 26 - Double bottom 17 but doji, always in short. Probably sellers at the high of the bar and probably scaling in higher for test close of yesterday
  • Bar 27 - Breakout, target below, more down. Possible measuring gap but more likely trending trading range day and buyers around 18t below 3
  • [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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