Reading the price action of Friday's down move: Brooks

Brooks Price Action Analysis of Friday, Sept. 20

pending chart 2328

Double top bear flag, expanding triangle bottom, breakout pullback sell or short, double top bear flag, bear channel, final flag bottom

  • Friday, September 20, 2013
  • Bar 1 - Yesterday was a fail, failure breakout above top of bull channel on daily so should test below low of yesterday for daily sell or short signal. Double top yesterday 32, but big bar so lower probability, since selling in middle of tr1. Ok swing sell or short. Possible wedge to pon daily and weekly
  • Bar 2 - Or, bull reversal bar, ok swing buy or long, but still on 1 sell or short and odds favor test low of yesterday. Probably sellers at the high of the bar and probably scaling in higher
  • Bar 7 - Breakout pullback sell or short but weak selloff so scalp or wait. Breakout test or bought 5 low so 6 is possible measuring gap
  • Bar 8 - Micro double bottom for trend from the first bar bear, 1st pullback, so sellers at the high of the bar and probably scaling in higher. Don�t buy or long
  • Bar 10 - Expanding triangle 44 55 so lower low major trend reversal, fail, failure breakout low of yesterday, second entry buy, bull outside bar surrounded by inside bars, ok swing buy or long for possible low of the day, but measured move target below
  • Bar 12 - Breakout pullback sell or short but still on 10 buy or long so buyers at the low of week of the bar and probably scaling in lower
  • Bar 15 - Two legged pullback in a bear move at moving average but 3 bull bars, always in long. Low probability sell or short
  • Bar 17 - Breakout pullback sell or short second entry sell, bear outside bar surrounded by inside bars, close on low, ok swing sell or short but sideways likely since tight trading range. Bulls might exit below. Tight trading range no scalping with stops
  • Bar 19 - Lower high second entry sell, but tight trading range no scalping with stops so swing only. 60 minute 20 bar exponential moving average and trendline target below
  • Bar 22 - Higher low but not enough buying pressure . Swing sell or short or wait
  • Bar 24 - Fail, failure breakout but tight channel, not enough buying pressure . Probably sellers at the high of the bar and probably scaling in higher. Don�t 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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