Analyzing Monday's price action: Brooks

Brooks Price Action Analysis of Monday, Dec. 23

pending chart 2479

Fail, failure breakout high of yesterday

  • Monday, December 23, 2013
  • Bar 1 - I leave early today. Top of weekly and daily channel so odds favor down. Bull doji, room to high of yesterday so pron test down. Bull body, better to wait. Might be small tight trading range days until 1/2/14
  • Bar 2 - Fail, failure breakout high of yesterday and top of channel. Another doji, far from high of yesterday and moving average so probably sellers at the high of the bar and probably scaling in higher
  • Bar 4 - Big bear bar, more down, always in short, but probably tight trading range since small dojis
  • Bar 5 - Bear fr, sellers at the high of the bar and probably scaling in higher
  • Bar 7 - Orev high of yesterday, two legged pullback in a bull move, but 3 bear bars so sellers at the high of the bar and probably scaling in higher
  • Bar 12 - Lower high major trend reversal, ok swing sell or short but more likely small trading range day and probably better to buy low of week sell high and scalp
  • Bar 16 - Two legged pullback in a bear move, fail, failure breakout, but too many bars up from 7 so probably always in long and buyers at the low of week of the bar and probably scaling in lower for channel up. Might get bull breakout and measured move up from low of the day to open of day, and then close near open of day for doji day. Range only 4.75 points so probably will get bigger. Very difficult to structure trades here since mostly tight trading range, but still in bull channel. Bears want lower high major trend reversal. Bad math and better to wait or look for scalps with limit order orders, buying below bars since channel, and maybe sellers at the high of the bar and probably scaling in higher
  • Bar 21 - Two inside bars, bull channel, always in long, but trading range day. Ok buy or long for swing or scalp if swing stop below 14
  • Bar 26 - Wedge 9 16, fail, failure breakout high of the day, but tight channel and probably buyers at the low of week of the bar and probably scaling in lower. Should reach measured move up or about 18t above 7 high, then 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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