Friday price action adds to gains in stock market: Brooks

Brooks Price Action Analysis for Friday, Feb. 14

pending chart 2630

Two legged pullback in a bull move, possible triangle bull breakout, small pullback bull, buy climax to leg 1 equals leg 2 measured move

  • Friday, February 14, 2014
  • Bar 1 - Two legged pullback in a bull move 60, wedge 72 79, always in long. Tail, trading range for 35 bars so swing but probably better to wait
  • Bar 2 - 2nd bull bar but fail, failure breakout high of yesterday. Probably buy below or buyers at the low of the bar and probably scaling in lower and more sideways, low probability sell or short
  • Bar 4 - Two legged pullback in a bull move 1, breakout pullback sell or short, but big bars in middle of trading range so low probability for stop entries
  • Bar 7 - Double top 2, fail, failure breakout high of yesterday second entry sell, close on low, possible high of the day, but 3 bull bars, tight trading range, better to wait since odds favor up. Breakout mode
  • Bar 8 - Breakout pullback pullback from 4 two legged pullback in a bull move, but middle of trading range, breakout mode. Ok buy or long but higher probability to buy above or buyers above 6
  • Bar 9 - Good breakout, probably more up. Probably trending trading range day since strong trading range pa in lower trading range
  • Bar 10 - Bear body so weaker bull. Fail, failure breakout but not strong enough to reverse 8 9 so probably buy below or buyers at the low of the bar and probably scaling in lower and measured move up
  • Bar 12 - Breakout, more up
  • Bar 13 - Strong bull bar, but at measured move target and probably trending trading range day. Better to take profits
  • Bar 14 - Final flag but strong breakout so probably buy below or buyers at the low of the bar and probably scaling in lower and upper trading range soon. Ok to wait to buy or long since strong bear bar. If buy or long, wide stop and scale in low probability sell or short, but possible high of the day. Better to wait for better to wait for a strong bear breakout or second entry sell.
  • Bar 19 - Tight trading range, always in long, should test 13 close where scale in bulls began, but 1st target 18 high. Tight trading range, bad for scalping with stop entries unless using swing stop, buy below or buyers at the low of the bar and probably scaling in lower. Not high enough probability unless swing stop and scale in to sell or short yet
  • [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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