Analyzing price action following Friday's gap higher: Brooks

Brooks Price Action Analysis of Friday, Dec. 6

pending chart 2438

Possible triangle top, two legged pullback in a bull move at moving average, wedge top

  • Friday, December 6, 2013
  • Bar 1 - Big gap up but doji so 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. Wait
  • Bar 2 - Big bear bar but 2t tail so lower probability. Ok swing but better to wait
  • Bar 3 - Bad follow through, trading range pa
  • Bar 4 - Breakout but small. Wait
  • Bar 5 - Big reversal up but 4 bear bars so probably sideways. Wait for breakout up and or down
  • Bar 6 - Lower high major trend reversal, double top but tails. Breakout mode, wait. Still on swing sell or short below 1 but tight trading range and low probability
  • Bar 9 - Breakout pullback buy or long from 5 breakout. Microwedge. Tight trading range, bad for scalping with stop entries unless using swing stop but ok swing buy or long. Higher probability to wait for breakout up and or down
  • Bar 11 - Possible triangle top 1 6, lower high major trend reversal second entry sell, ok swing sell or short but low probability. Better to wait for breakout
  • Bar 13 - Found sellers at the high of the bar and probably scaling in higher 12, possible bear breakout and measured move down to moving average. Swing sell or short below but still low probability trading range pa
  • Bar 16 - Two legged pullback in a bull move 4, two legged pullback in a bull move 9, bull bar at moving average, but doji and 5 bars down so better to wait for second entry buy or strong breakout
  • Bar 20 - Follow through from 19 outside up bar, 5 bars up, always in long, buyers at the low of week of the bar and probably scaling in lower, but middle of trading range day. Weak rally so better to buy or long pullback
  • [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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