Breaking down Wednesday's sideways price action: Brooks

Brooks Price Action Analysis of Wednesday, July 10

pending chart 2211

Lower high major trend reversal, wedge bottom, double top, double bottom

  • Wednesday, July 10, 2013
  • Bar 1 - Yesterday tested lower high on daily so possible double top. Tight trading range for 50 bars so tight trading range no scalping with stops. Two legged pullback in a bull move but bear body. Better to wait
  • Bar 2 - Lower high major trend reversal but tight trading range. Wait for breakout
  • Bar 3 - Possible triangle 77 81, bull reversal bar, ok swing buy or long
  • Bar 6 - Three inside bars in a row, weak follow through.
  • Bar 7 - Lower high major trend reversal. Outside down bar but tight trading range in big tight trading range. Tight trading range no scalping with stops. Bulls need breakout above june high on cash, else double top on daily
  • Bar 9 - Big bear bar, close on low, good entry bar for lower high major trend reversal. Always in short
  • Bar 10 - Good follow through, more down
  • Bar 12 - 2 dojis, weak follow through, probably bear leg in trading range and not bear trend
  • Bar 14 - Bull inside bar, wedge 65 77, but 5 bars down so lp buy or long. Ok to exit sell or short but probably sellers at the high of the bar and probably scaling in higher and more down. Wait to buy or long.
  • Bar 22 - Two inside bars, ff17, but doji, not strong enough to reverse 19 20. Lp so wait
  • Bar 23 - Double top 20, but bull bar, bottom of weak bear, at measured move. 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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