Analyzing Wednesday's sideways price action: Brooks

Brooks Price Action Analysis of Wednesday, July 31

pending chart 2253

Trend from the first bar bull, wedge top, fomc, two legged pullback in a bull move, higher high major trend reversal, trading range day

  • Wednesday, July 31, 2013
  • Bar 1 - Fomc at 11 am. Big bull bar after 3 bull bars so always in long, but need follow through
  • Bar 2 - Bear inside bar but tail. Buyers at the low of week of the bar and probably scaling in lower. Trading range pa so probably scalpers below
  • Bar 3 - Breakout pullback buy or long but 2 bear bars. Trading range pa so probably sellers at the high of the bar and probably scaling in higher
  • Bar 6 - Bull two inside bars but tight trading range no scalping with stops. Probably 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, but ok swing sell or short below 5. Higher probability to wait for strong breakout up and or down
  • Bar 8 - Two legged pullback in a bull move but 1t body so low probability, swing or wait
  • Bar 12 - Big bull bar, close on high, more up
  • Bar 13 - Fail, failure breakout but 1t tail, 2t body so not strong sell or short. Bulls will get out below, low probability sell or short
  • Bar 14 - But tail so probably sideways soon
  • Bar 15 - Wedge 4 12, or 53 1, bear inside bar, ok swing sell or short. Weak follow through all day so probably sellers at the high of the bar and probably scaling in higher and rally in trading range. Bulls = wait to buy or long pullbacks
  • Bar 19 - Wedge 4 12, ok swing sell or short
  • Bar 20 - Close on low, probably always in short
  • [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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