Price action analysis for Friday's strong trend day: Brooks

Brooks Price Action Analysis of Friday, July 5

pending chart 2197

Double top, higher low major trend reversal, close above top of gap on daily

  • Friday, July 5, 2013
  • Bar 1 - Big bear bar just below top of gap on daily = pink line. Ok swing sell or short for high of the day. Always in short
  • Bar 3 - Micro double bottom but not strong compared to 1. Ok to exit scalp sell or short but still on swing sell or short
  • Bar 4 - Bit bull bar but need 1 more bar up. Bears will sell or short close since always in short
  • Bar 5 - Second entry sell fail, failure breakout above bull channel. Bear reversal bar, double top 1, still always in short so swing. Might be buyers at the low of week of the bar and probably scaling in lower. Bulls should wait
  • Bar 6 - Close on low, probably test bottom of channel after 2 fail, failure bull breakout. Targets measured move, high of yesterday, 60 minute 20 bar exponential moving average
  • Bar 9 - Breakout, more down. Should test bottom of channel at minimum or minutes
  • Bar 11 - Close on close but at support 60 minute 20 bar exponential moving average, 43 low, near measured move. Sideways likely soon, but always in short, sellers at the high of the bar and probably scaling in higher. Swing stop above 9 breakout
  • Bar 12 - Two bar revresal sell vacuum test of 60 minute 20 bar exponential moving average, 43 low. Two legged pullback in a bull move 3. Trading range likely, then trend resumption or trend reversal late in day. .less likely, low of the day
  • Bar 13 - 2 strong bull bars above support so buyers at the low of week of the bar and probably scaling in lower, then probably trading range
  • Bar 17 - Bull two inside bars, but dojis, tight trading range no scalping with stops. Bulls need breakout. Trading range most likely
  • Bar 19 - Lower high major trend reversal, two legged pullback in a bear move 13, but 7 of 9 bull bars so better to wait for es. Always in long, probably buyers at the low of week 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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