Friday's stock market price action could set up Monday bias

Brooks Price Action Analysis of Friday, July 19

pending chart 2232

Two legged pullback in a bull move, higher low major trend reversal, possible triangle, trending trading range day, broad bull channel

  • Friday, July 19, 2013
  • Bar 1 - Big two legged pullback in a bull move 47, breakout pullback sell or short but doji, just above 60 minute 20 bar exponential moving average. Buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher. Pink line = open of week 1675 possible magnet at end of day
  • Bar 3 - Big outside up bar, double bottom 60 minute 20 bar exponential moving average, ok swing buy or long. Tight trading range no scalping with stops. Always in long above3
  • Bar 4 - Two legged pullback in a bear move moving average, but still on3 buy or long with stop below 3
  • Bar 5 - Second entry buy
  • Bar 6 - Bear entry bar. Ok to exit and wait for breakout, but still always in long and ok to hold buy or long
  • Bar 9 - Wedge bear flag 1 4 but bull body. Ok swing sell or short, ok to exit buy or long, but still always in long. Best = wait for breakout up and or down
  • Bar 12 - Higher low major trend reversal, double bottom pullback, ok swing buy or long, ok to wait for breakout above 9
  • Bar 14 - Two legged pullback in a bear move 9, bear reversal bar, fail, failure breakout. Ok swing sell or short but low probability. Big 13 breakout so probably buyers at the low of week of the bar and probably scaling in lower and 2nd leg up. Still always in long, but trading range pa
  • Bar 19 - Second entry sell l29 but 1t body, tight trading range, always in long, probably buyers at the low of week of the bar and probably scaling in lower. Ok to exit buy or long
  • Bar 20 - Strong bull reversal bar, h216, should get 2nd leg up so okb swing, low probablilty so swing stop, convert to scalp if quickly goes reward 2 times risk
  • Bar 23 - Two inside bars but big bars, weak rally, lower high 78. Probably sellers at the high of the bar and probably scaling in higher
  • [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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