Price action highlights after Monday's gap higher: Brooks

Brooks Price Action Analysis of Monday, Dec. 16

pending chart 2447

Trend from the first bar bull, one bar final flag, wedge bull flag, possible triangle bear breakout, parabolic wedge bottom

  • Monday, December 16, 2013
  • Bar 1 - Breakout above 2 day possible triangle bottom. Close on high, more up. Always in long
  • Bar 2 - Bull body, more up, but tail, and trendline just above so might enter trading range soon
  • Bar 3 - Breakout pullback buy or long, ok buy or long if stop below 2 or 1. Target just above. Probably early to sellers at the high of the bar and probably scaling in higher
  • Bar 6 - Another breakout pullback buy or long but doji, microwedge, at targets, so bears will start to sellers at the high of the bar and probably scaling in higher. Wait to buy or long pullback, but might go sideways to down for 1-2 hours and get close to moving average
  • Bar 7 - One bar final flag, buy climax, microwedge, micro double top, probably sideways to down, but better to only sellers at the high of the bar and probably scaling in higher bars in strong bull. Buyers at the low of week of the bar and probably scaling in lower but only if wide stop and scale in since probably entering trading range and probably will test 3 low and maybe moving average. Better to wait for stop entry buy or long
  • Bar 9 - 2 bear bars, probably sellers at the high of the bar and probably scaling in higher and more sideways to down to moving average
  • Bar 11 - Breakout pullback buy or long but doji two inside bars so only buy or long if can scale in lower. Probably sellers at the high of the bar and probably scaling in higher, but better to only sell or short higher, near top of trading range. Still always in long. Better to wait for closer to moving average
  • Bar 15 - Two legged pullback in a bull move, near moving average, but doji so possible more down. Ok buy or long if wide stop. Higher probability to wait for bull breakout or second entry buy
  • Bar 16 - Fail, failure two legged pullback in a bull move, breakout pullback sell or short, but weak bear, just above moving average so probably buyers at the low of week of the bar and probably scaling in lower for scalp. Low probability sell or short. Trading range more likely than bear. Buy low of week sell high and scalp
  • Bar 18 - Two legged pullback in a bear move sell or short but at moving average, weak channel, so possible final flag. Ok swing sell or short but better to wait to see if final flag buy or long soon
  • Bar 20 - Wedge 9 14 at moving average, final flag 18, higher low, always in long, ok swing buy or long. Bears want double top 17 or 12. I breakout test or bought in simulated acct
  • [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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