Price action breakdown of Friday's stock market: Brooks

Brooks Price Action Analysis of Friday, Aug. 16

pending chart 2279

Wedge bottom, higher low major trend reversal, two legged pullback in a bear move, wedge bottom

  • Friday, August 16, 2013
  • Bar 1 - Yesterday was gap down bear on daily, but ended with possible wedge bottom. Bear bar but probably buyers at the low of week of the bar and probably scaling in lower. Pink line is bottom of gap on daily chart = magnet. Yesterday was trading range day so probably trading range today. Targets = lower highs 76 62, and 37 top of wedge, green line = june 18 high = breakout point on daily
  • Bar 2 - Wedge bottom 9 57, big bull reversal bar, ok swing but too much overlap so might get one more new low so ok to wait
  • Bar 3 - Breakout pullback sell or short but tails so buyers at the low of week of the bar and probably scaling in lower and probably on close. Still on 2 buy or long
  • Bar 5 - Follow through but at moving average. Two legged pullback in a bear move 2 but bull bar so low probability. Still always in long for swing up with stop below 2 or 4, but probably trading range day
  • Bar 7 - Micro double bottom but big tails and trading range pa today and yesterday. Swing buy or long only or swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk
  • Bar 9 - Wedge 1 5, two bar revresal, lower high, but tight trading range no scalping with stops. Swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk sell or short or wait
  • Bar 12 - Higher low major trend reversal, double bottom 7, ok swing buy or long, but trading range day so far
  • Bar 15 - Breakout pullback buy or long but top of trading range, bear bar, low probability. Wait
  • Bar 18 - Two legged pullback in a bear move 8, but tight channel. Better to wait for second entry sell
  • Bar 19 - Two legged pullback in a bear move second entry sell, micro double top 18, but outside up bar
  • Bar 20 - Big bear bar, close on low, more down, maybe to 12 low
  • [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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