Profit taking thwards E-mini S&P breakout

Brooks Price Action - 01-24-2013 Thursday

pending chart 1816

Trend from the first bar bull, higher high major trend reversal, profit taking at 1500 on cash index, final flag bottom at 60-minute 20-bar exponential moving average

  • Thursday, January 24, 2013
  • Bar 1 - Big bar, close near high and high of yesterday. If buy or long above, trade very small. Possible low of the day
  • Bar 2 - Bull body so follow through and more up. Always in long. Need wide stop so trade small. Buyers below
  • Bar 3 - Close above 3 so possible measuring gap
  • Bar 4 - Bull inside bar, one legged pullback in a bull move buy or long, but lp so swing only or wait. Buyers below
  • Bar 7 - Big bar at top of 60 minimum or minutes channel so possible buy climax and then tight trading range for hours. Late in day, bulls will want trend resumption and bears will want reversal
  • Bar 8 - Doji, probably start of tight trading range. Possible high of the day. Trend from the first bar so buyers below, but since buy climax, better to wait. Targets = below 7 low and moving average
  • Bar 13 - Three inside bars in a row one legged pullback in a bull move, but buy climax and tight trading range so probably buyers below and sellers above. Bad for stop entries unless wide stop. Always in long, can buy or long with wide stop, looking for leg 1 equals leg 2 measured move swingand spike and channel bull, but trading range more likely and better to scalp
  • Bar 15 - Breakout pullback sell or short but doji and always in long. Buyers below
  • Bar 17 - Two legged pullback in a bear move lower high major trend reversal but tight channel and doji so probably buyers below
  • Bar 22 - Outside bar surrounded by inside bars but bear bar and top of probably trading range so sellers above.
  • Bar 25 - Higher high major trend reversal, possible high of the day, bear inside bar, but tight channel so lp. Trading range more likely so swing sell or short. Not high enough probability 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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