Analyzing the last day of trading for 2013: Brooks

Brooks Price Action Analysis for Tuesday, Dec. 31

pending chart 2494

Opening reversal, wedge top, possible triangle lower high major trend reversal, fail, failure breakout low of the day

  • Tuesday, December 31, 2013
  • Bar 1 - Gap up but small bar. Wait
  • Bar 3 - Fail, failure breakout high of yesterday, close on low, possible high of the day so ok swing sell or short, but small bars. Opening reversal around moving average more likely
  • Bar 4 - Opening reversal, breakout pullback buy or long, but 3 bear bars. Possible low of the day but higher probability to wait for breakout up and or down. Still always in long
  • Bar 8 - Breakout pullback buy or long but doji, small bars so might be sellers at the high of the bar and probably scaling in higher for more pullback, but still always in long
  • Bar 9 - Wedge 64 1, fail, failure breakout high of yesterday second entry sell but 5 bars up so probably buyers at the low of week of the bar and probably scaling in lower. Low probability sell or short. Swing stop for bulls below 4 or 5
  • Bar 12 - Two legged pullback in a bull move, two inside bars, but tight trading range, bad for scalping with stop entries unless using swing stop. Always in long stop below 4, but weak leg so probably part of trading range and not bull trend
  • Bar 15 - Lower high but 4 bars up, always in long, probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 16 - Breakout pullback buy or long but 2 bear bars so low probability. Need swing stop or wait
  • Bar 19 - Breakout and follow through, 16t above 4 so more up. Don�t sell or short yet. Swing stop for bulls now below 18 or 19
  • Bar 22 - Wedge 1 or 64, 7, possible high of the day, bear inside bar, but 4 bull bars so low probability and sideways more likely. Bears probably need double top lower high major trend reversal
  • Bar 24 - Breakout pullback buy or long but probably will get closer to moving average than last pullback at 17. Sideways likely. Bears want high of the day, bulls want two legs up from 18 19 breakout
  • [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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