Price action sinks on Tuesday: Brooks

Brooks Price Action Analysis for Tuesday, March 11

pending chart 2679

Many targets around 1895 for possible high of next several months for test below 1700. In the sell or short zone so consider buying put spreads, but a little more up likely. Bears want gap down tomorrow for island top on daily and start of correction. Might gap down and form a brief island bottom for one final push up to targets around 1895.

  • Tuesday, March 11, 2014
  • Bar 1 - Fail breakout high of yesterday, sell the close, but buy below or buyers at the low of the bar and probably scaling in lower near moving average. Trend from the first bar bear. Might test bottom of channel. Always in long as long as above 70 low. Pink line = all time high
  • Bar 2 - Big tail but 2cc bear bodies so low probability opening reversal buy or long. Sideways likely
  • Bar 3 - Another bear bar, but tail. Might hit bottom of channel. Always in long as long as above 70 low
  • Bar 4 - Gap, possible measuring gap, more down, but at 60 minute 20 bar exponential moving average and just above trendline so be quick to exit
  • Bar 5 - Opening reversal at 60 minute 20 bar exponential moving average and bottom of channel. Double bottom 70, but big up, big down, many tails, so sideways. Probably sell above or sellers at the high of the bar and probably scaling in higher and sideways
  • Bar 6 - Opening reversal but too many bars down so sell above or sellers at the high of the bar and probably scaling in higher, low probability buy or long. Breakout pullback sell or short, ok swing., but middle of yesterday trading range so sideways likely
  • Bar 8 - Opening reversal second entry buy, bull outside bar surrounded by inside bars at 60 minute 20 bar exponential moving average. Ok swing buy or long for low of the day, or swing sell or short, but probably 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 and trading range. Bear stop above 1
  • Bar 10 - Breakout, possible measuring gap
  • Bar 12 - Possible measuring gap, but still below 1 high so odds favor pullback soon
  • Bar 14 - Lower high major trend reversal but 8 bar microchannel so probably buy below or buyers at the low of the bar and probably scaling in lower, but stop below 8, maybe 12. Might test moving average and 11 low
  • Bar 15 - Breakout pullback buy or long but need wide stop since probably sell above or sellers at the high of the bar and probably scaling in higher, just below 1 top of bear leg. Always in long, buy below or buyers at the low of the bar and probably scaling in lower
  • [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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