Breaking down price action after big gap higher: Brooks

Brooks Price Action Analysis of Thursday, July 11

pending chart 2214

Gap up, trend from the first bar bear, two legged pullback in a bull move, double bottom bull flag, trending trading range day

  • Thursday, July 11, 2013
  • Bar 1 - Big gap up but bear bar, close near low so ok swing sell or short. Not big bar so not strong sell or short.
  • Bar 2 - Bear body so always in short but doji so weak follow through. Probably trading range day since 8 of past 10 days were dojis
  • Bar 4 - Breakout, more down
  • Bar 5 - Two bar revresal but 4 bear bars so sellers at the high of the bar and probably scaling in higher
  • Bar 6 - Breakout pullback sell or short but tail. Tight trading range no scalping with stops
  • Bar 8 - Two legged pullback in a bull move, but tight trading range no scalping with stops. Still always in long, probably sellers at the high of the bar and probably scaling in higher
  • Bar 10 - Double top, ok swing sell or short. Tight trading range no scalping with stops
  • Bar 13 - Breakout but tail
  • Bar 14 - Doji so weak follow through
  • Bar 15 - Two legged pullback in a bull move 4, outside up bar, close on high, possible low of the day, ok swing buy or long
  • Bar 17 - Bull breakout of two legged pullback in a bull move. Always in long
  • [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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