Friday price action ends lower: Brooks

Brooks Price Action Analysis of Friday, Aug. 30

pending chart 2298

Trend from the first bar bear, lower low major trend reversal,tri, final flag, higher low major trend reversal, lower high major trend reversal, double bottom at daily trendline

  • Friday, August 30, 2013
  • Bar 1 - Big bear bar, close near low, two legged pullback in a bear move, ok but bottom of channel so might find buyers soon. Trendline on daily chart at 1627.25 = blue line (i drew as horizontal, but actually bull trendline on daily), and should get there today or soon since so close. Green line = low of last week, so magnet since today is fri
  • Bar 3 - Bear bars, always in short, sellers at the high of the bar and probably scaling in higher, but tight trading range no scalping with stops
  • Bar 6 - Breakout pullback sell or short but bottom of channel and tight trading range so swing or wait
  • Bar 8 - Bull inside bar, fail, failure breakout, but not strong buy or long so still always in short
  • Bar 11 - Breakout pullback sell or short but doji, far from moving average. Buyers at the low of week of the bar and probably scaling in lower
  • Bar 14 - Wedge 8 10, but possible final flag. Better to scalp or wait. Still above low of yesterday and 3rd push down so possible low of the day soon
  • Bar 22 - Two inside bars at moving average, ok swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk below. Wait for better bottom or strong breakout to buy or long
  • Bar 27 - Lower low major trend reversal, h4, spike and channel bear wedge 9 16, test low of yesterday, ok buy or long for possible low of the day
  • Bar 28 - Tail, so weak entry bar. Breakout pullback sell or short below, but low probability. Channel for 80 bars so probability 60% that will convert into trading range soon. Better to look to buy low of week sell high and scalp. Should get approx. Ten bar, two-legged correction sideways to up soon since channel unsustainable and therefore sell climax
  • Bar 29 - Breakout pullback sell or short but 1t body, still on swing buy or long. Buyers at the low of week of the bar and probably scaling in lower
  • Bar 31 - Second entry buy, ok swing buy or long
  • [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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