Thursday price action drifts higher: Brooks

Brooks Price Action Analysis for Thursday, Feb. 20

pending chart 2642

Wedge bottom,

  • Thursday, February 20, 2014
  • Bar 1 - Bull body but tail at 35 low breakout point. Probably sell above or sellers at the high of the bar and probably scaling in higher, then test close of yesterday and low of yesterday. Still always in short
  • Bar 2 - Opening reversal but 2 big bars, tail, so sideways likely so swing or wait
  • Bar 3 - Bull doji so low probability buy or long, but tight trading range so far. Always in short, but probably breakout mode into report
  • Bar 4 - Breakout pullback sell or short, always in short, ok swing, maybe scalp for test low of yesterday and bottom of wedge channel
  • Bar 6 - Double bottom major trend reversal but doji, report, better to wait. Trading range pa so far. Trend from the first bar bear but at support low of yesterday, trend channel line below
  • Bar 8 - Wedge 35 77, micro double bottom, ok swing buy or long above for possible low of the day. Big bar so trade small
  • Bar 10 - Follow through, always in long. Two legged pullback in a bear move sell or short 7, lower high at top of bear channel so swing sell or short but more likely buy below or buyers at the low of the bar and probably scaling in lower and two legs up
  • Bar 11 - Breakout pullback buy or long but top of channel, need wide stop and scale in, swing of scalp . Fail, failure breakout, but always in long so low probability sell or short
  • Bar 14 - Wedge 7 9 at 60 minute 20 bar exponential moving average, but tight channel so buy below or buyers at the low of the bar and probably scaling in lower, stop below 10. Doji, 60 moving average, fail, failure breakout high of the day, possible sell above or sellers at the high of the bar and probably scaling in higher and tight trading range. Trendline magnet above
  • Bar 17 - Breakout buy or long, breakout test or bought 10 high so 13 possible measuring gap. Trendline just above, trading range pa so far, so trading range day more likely
  • Bar 18 - Fail, failure breakout high of the day, wedge 1 13, 60 moving average, trendline, second entry sell but tight trading range, bad for scalping with stop entries unless using swing stop and no strong top so low probability swing sell or short. More up likely, 13 measuring gap
  • [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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