Wednesday price action opens lower, climbs: Brooks

Brooks Price Action Analysis for Wednesday, March 12

pending chart 2683

Attempted island top on daily, but gap closed early so might soon test daily targets above around 1895 for possible high of next several months, and then a test below 1700. In the sell or short zone so consider buying put spreads, but a little more up likely. Good reversal from gap down today so more up likely.

  • Wednesday, March 12, 2014
  • Bar 1 - Gap down, island on daily chart, but doji so sell above or sellers at the high of the bar and probably scaling in higher buy below or buyers at the low of the bar and probably scaling in lower. Bear breakout of bear channel, usually reverses up to top of channel, but daily chart is good for bears for possible bear trend day.
  • Bar 2 - Opening reversal sell or short, sell above or sellers at the high of the bar and probably scaling in higher 1 so sell below or sellers below or signal bar 2, possible high of the day. Doji so lower probability, but ok swing sell or short
  • Bar 4 - Fail, failure breakout low of yesterday second entry buy, reversal bar, 17t fail, failure, measured move, but bear body. Swing buy or long for possible low of the day or wait. Many tails so weak bear. Ok buy or long
  • Bar 6 - Bull inside bar, probably always in long
  • Bar 7 - Big bull bar, close on high, but at moving average so possible double top opening reversal at moving average. Take at least half off at 2 � 3 points
  • Bar 9 - Opening reversal, double top at moving average, but strong rally so more likely buy below or buyers at the low of the bar and probably scaling in lower. Bad follow through for bulls so probably mostly trading range day
  • Bar 10 - Breakout pullback buy or long but at moving average and low of yesterday, bear body so low probability. Always in long, need swing stop, else wait for breakout
  • Bar 12 - Wedge bear flag at moving average but always in long so probably buy below or buyers at the low of the bar and probably scaling in lower and buy above or buyers above for test top of channel. If bull breakout, then measured move up. Trading range so far
  • Bar 14 - Microwedge 8 11, wedge 2 8, but always in long, tight trading range, probably buy below or buyers at the low of the bar and probably scaling in lower, but swing bulls probably should exit below. Ok swing sell or short below. Bulls need breakout above wedge for measured move up to 55 high and 60 minute 20 bar exponential moving average, bears want breakout below low of the day and measured move down. Still always in long
  • Bar 15 - Bull two inside bars but wedge top just below moving average so better to not buy or long until after breakout. Ok swing sell or short below 14 but always in long, probably buy below or buyers at the low of the bar and probably scaling in lower. 16 double bottom 10, always in long, tight trading range, bad for scalping with stop entries unless using swing stop. Ok swing above for measured move up
  • Bar 18 - Breakout, possible measuring gap, close on high, but at 15 minute 20 bar moving average plotted on a 5 minute chart and not big. Need follow through, else possible wedge top
  • [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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