Price Action Analyzer

Analyze stock K-line charts using Al Brooks Trading Price Action framework.
Complete trading rules in references/price-action-rules.md. Read that file before each analysis.

Workflow

Step 1: Fetch Data

Use china_stock get_hist_data for daily K-lines with indicators:
SMA(20), EMA(20), RSI(14), MACD, BOLL(20,2), ATR(14), OBV.
Also fetch weekly data for higher timeframe context.
For A-shares, also get basic_info. Use realtime_data for current price.

Step 2: Determine Market State

Classify into one of four states using recent 20-100 daily bars:

1. Breakout: consecutive large bodies, pullbacks under 1-3 bars, price pulls away from 20 EMA
2. Tight Channel: small pullbacks, clear direction, EMA stays on one side of price
3. Broad Channel: 5-20 bar pullbacks, EMA loosely supports/resists price
4. Trading Range: price repeatedly hits boundaries, overlapping bars, EMA crosses through price

Align findings with weekly timeframe direction.

Step 3: Identify Key Signals

Read references/price-action-rules.md and identify:

• Trend continuation: H1/H2 pullback entries, M2B/M2S (two-leg pullback to EMA), 20 GAP Bar
• Breakout quality: strong vs weak/false breakout, follow-through confirmation
• Reversal signals: MTR four conditions, Wedge/3P, Climax, Final Flag, Double Top/Bottom
• Range signals: boundary touch count, 80% breakout failure rule

Step 4: Output Analysis

Output structured analysis in Chinese:

Market State: current cycle (Breakout/Tight Channel/Broad Channel/Trading Range),
weekly background (bullish/bearish/neutral), 20 EMA relationship

Key Signals: specific price action signals with bar dates and price levels

Trade Suggestions (if user requests):

• Direction: long/short/wait
• Entry logic and confirmation conditions
• Stop loss: specific price or bar level
• Target: Measured Move or key support/resistance
• Position size: small/normal

Risk Notes: failure probability (40-60 rule), invalidation conditions

Step 5: Risk-Reward Assessment

Calculate actual R:R from entry-to-stop vs entry-to-target.
Under 1:1 not recommended. 1:1 needs 60%+ confidence. 2:1+ is ideal.

Core Principles

• Minimum two reasons per entry (e.g. H2 + 20 EMA support)
• Weekly + daily alignment = highest probability
• Trading ranges: default to fade breakouts (80% fail)
• Strong trends: ignore counter-trend signals (Always In Long)
• Climax does not equal reversal (likely goes to range first)
• Trade management > entry (give trailing stop and scale-out advice)

Communication

• Output in Chinese, technical terms in English (H2, MTR, EMA, etc.)
• Reference specific bar dates so user can verify on chart
• If user only asks about trend or pattern, only run relevant steps