Price action highlights key levels for stock market

Brooks price action for Friday, May 25

Stock index, chart, technical analysis Stock index, chart, technical analysis

pending chart 1381

Trading range day

  • Friday, May 25, 2012
  • Bar 1 - Yesterday = strong close but near top of 5 day trading range. Doji so sellers above, probably near close of yesterday
  • Bar 2 - Micro double top 81 but 2 bull bars so buyers below
  • Bar 5 - Two inside bars, two legged pullback in a bull move but big overlap so tight trading range and sellers above
  • Bar 6 - Two legged pullback in a bear move 2, double top bear flag 2, but doji short. Ok swing short but not high enough probability for scalp. Possible high of the day
  • Bar 10 - Two bar revresal at moving average but 3 bear bars so probably sellers above
  • Bar 11 - Breakout pullback short but bottom of trading range and 2 bull bars. Wait
  • Bar 12 - Not quite outside up bar so bulls not yet strong
  • Bar 13 - Breakout but tail. Need follow through, else top of trading range
  • Bar 14 - Two legged pullback in a bear move, double top 6, but 5 bars up so not high probability short. Swing short for high of the day
  • Bar 16 - Double bottom 9 at moving average but strong bear bar so sellers above
  • Bar 17 - Breakout pullback short but doji and bottom of trading range so probably buyers below
  • [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.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 This material may not be published, broadcast, rewritten, or redistributed.

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