Breaking down the stock market's big Thursday gains: Brooks

Brooks Price Action Analysis of Thursday, Aug. 1

pending chart 2255

Trend from the first bar bull, wedge top, double top major trend reversal, trend resumption,

  • Thursday, August 1, 2013
  • Bar 1 - Gap up, 1700 magnet above, always in long but doji. Possible trend from the first bar bull so ok swing buy or long
  • Bar 2 - Doji, but consecutive bull bars. Better to not sellers at the high of the bar and probably scaling in higher. Stop below 1
  • Bar 5 - Mdt but 5 bull bars so probably buyers at the low of week of the bar and probably scaling in lower. Swing buy or long or wait
  • Bar 6 - Outside down bar, ik to exit longs below. Ba, always in long.
  • Bar 8 - Bull follow through, still always in long, but weak rally so might become trading range
  • Bar 9 - Two legged pullback in a bear move 5 but 1t body so probably buyers at the low of week of the bar and probably scaling in lower. Stop below 7 breakout
  • Bar 11 - Outside bar surrounded by inside bars, always in long, swing buy or long or wait
  • Bar 12 - Wedge 1 9. Ok swing sell or short, especially if stop 3t above to allow for one more small push up. Exit longs
  • Bar 15 - Double bottom, bull inside bar, but always in short. Swingb above, bears might exit above. Target 7 low and moving average
  • Bar 19 - Micro double bottom, double bottom 6, twenty gap bars, bottom of trading range. Still on sell or short 12 but better to go flat since trading range and buy low of week sell high and scalp
  • Bar 22 - Double bottom 6, outside bar surrounded by inside bars, second entry buy, but tight trading range no scalping with stops. Target 16 high = top of bear breakout. Still always in short but tight trading range in small trading range day so better to be flat
  • [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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