Thursday price action gaps higher, sinks: Brooks

Brooks Price Action Analysis for Thursday, March 7

pending chart 2675

Parabolic wedge top, double bottom at moving average, lower high major trend reversal, parabolic wedge bottom. Tomorrow unemployment report so could gap down and form island top. Measured move target and top of weekly channel both around 1895 for possible high of next few months

  • Thursday, March 6, 2014
  • Bar 1 - Gap up but doji so buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 2 - Doji inside bar, still always in long, but probably sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 4 - Bear reversal bar but 3 bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower. Trading range pa so far but always in long
  • Bar 5 - Breakout, but possible exhaustion gap. 5 bars up but small, overlap so probably part of a trading range and probably will trade down soon
  • Bar 6 - Parabolic wedge 1 3, possible high of the day but trend from the first bar bull so more likely sideways, but ok swing sell or short for possible high of the day. Bears want test 5l and moving average and low of the day. Swing stop for bulls below 1, but probably better to exit long and wait to buy or long pullback since possible high of the day
  • Bar 9 - Breakout, more down
  • Bar 10 - Bear follow through, but 1t below low of the day, moving average so probably buyers here for bounce. Bulls want double bottom low of the day
  • Bar 11 - Double bottom 1 at moving average, test of gap, but 5 bars down, 16t below 6, probably sell above or sellers at the high of the bar and probably scaling in higher. Low probability buy or long and sideways more likely than up. Better to wait for a strong bull breakout or second entry buy
  • Bar 12 - Strong breakout from double bottom at moving average, but trading range most likely
  • Bar 13 - Lower high major trend reversal but probably buy below or buyers at the low of the bar and probably scaling in lower after bull breakout and possible low of the day. Sideways likely. Trading range pa so far
  • Bar 15 - Breakout pullback buy or long but middle of trading range day so probably sell above or sellers at the high of the bar and probably scaling in higher. Double bottom bulls need breakout above 6 high of the day for possible measured move up, else more trading range.
  • [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.

Comments
comments powered by Disqus