Stock index price action breakdown: Brooks

Brooks Price Action Analysis of Friday, July 12

pending chart 2217

Higher high major trend reversal, double bottom major trend reversal, higher low micro trend line, trading range day

  • Friday, July 12, 2013
  • Bar 1 - Yesterday ended with wedge and 81 sell or short signal bar. Ok swing sell or short below 81 but better to wait
  • Bar 4 - Two bar revresal, ok swing buy or long, but big bars, tight trading range, so lp
  • Bar 5 - Bull body, always in long, but tight trading range
  • Bar 9 - Outside up bar but tail. Still always in long, stop below 9 double bottom. Still lp
  • Bar 11 - Double top 5 but buyers at the low of week of the bar and probably scaling in lower after 2 strong bull bars
  • Bar 16 - Higher high major trend reversal, wedge 5 10, fail, failure breakout high of yesterday, but outside down bar and tight trading range so lp and probably still always in long. Wait
  • Bar 20 - Three inside bars in a row, always in long, db12. Ok swing buy or long, but lp. No bull bar in 5 bars. Better to wait
  • Bar 25 - No bull bar so some follow through on bear breakout. Many bear bars so lots of selling pressure. More down likely
  • Bar 30 - Inside bar, double bottom 3, but only 1 bull bar in 15 bars so sellers at the high of the bar and probably scaling in higher. Weak selling so trading range likely. Wait for moving average test for possible two legged pullback in a bear move sell or short
  • Bar 36 - Two legged pullback in a bear move but doji, tight trading range, bottom of trading range, 15 minute 20 bar moving average plotted on a 5 minute chart. Probably buyers at the low of week of the bar and probably scaling in lower. Lp sell or short and better to wait
  • Bar 38 - Two bar revresal, fail, failure two legged pullback in a bear move, bottom of trading range. Tight trading range no scalping with stops so swing or wait. Always in short, should hit measured move below
  • [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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