Breaking down Friday's price action: Brooks

Brooks Price Action Analysis of Friday, Dec. 20

pending chart 2474

Trend from the first bar bull,

  • Friday, December 20, 2013
  • Bar 1 - I leave early today. Yesterday = trading range day after huge bull. Big bull bar so possible trend resumption and low of the day. Ok swing buy or long
  • Bar 2 - Follow through, more up, but tail
  • Bar 4 - Fail, failure breakout but trend from the first bar bull, buyers at the low of week of the bar and probably scaling in lower
  • Bar 5 - Breakout pullback buy or long bug doji after tbear bar, microwedge 1 2 4, so sideways more likely. Might be sellers at the high of the bar and probably scaling in higher and might enter tight trading range for hours, then trend resumption or trend reversal
  • Bar 6 - Fail, failure breakout high of yesterday second entry sell, but 2 dojis, strong breakout so trading range more likely, but possible high of the day
  • Bar 10 - Breakout pullback sell or short but tight trading range so probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 12 - Double bottom 7 but dojis so low probability. Always in long for ok swing for leg 1 equals leg 2 measured move spike and channel up, but sideways more likely
  • Bar 14 - Breakout and follow through so spike and channel up more likely than trading range, but weak channel so need stop below 8. Bears want higher high major trend reversal
  • Bar 17 - Higher high major trend reversal, bear inside bar, but 9 bars without bear body so sideways more likely. Bear scalpers from 4t above 4
  • Bar 19 - One legged pullback in a bull move, five tick failure fail, failure, but 2 bear bars, weak bull channel so need swing stop. Still in bull channel, but bears trying to convert into trading range or wedge top. Channel so bulls will buy or long pullbacks to middle of prior leg and bears will scale in above high
  • Bar 24 - Wedge 4 16, bear reversal bar, but too many bull bars closing in upper half, and targets above so probably buyers at the low of week of the bar and probably scaling in lower for test of measured move and trend channel line above. Bears will wait to sell or short there for scalp
  • [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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