Friday price action sees trend reversal

Brooks Price Action Analysis for Friday, Jan. 3

pending chart 2504

Trend from the first bar bull, lower high major trend reversal, sell vacuum test low of yesterday, higher low major trend reversal

  • Friday, January 3, 2014
  • Bar 1 - Bull bar, 60 minute 20 bar exponential moving average and 7 high top of channel = targets above. Channel yesterday so probably trading range
  • Bar 2 - Big bull bar, but buy vacuum test 60 minute 20 bar exponential moving average. Wait to buy or long. Always in long, stop below 1
  • Bar 3 - Fail, failure breakout, 60 minute 20 bar exponential moving average, but always in long so buyers at the low of week of the bar and probably scaling in lower, stop below 1
  • Bar 4 - Breakout pullback buy or long, always in long, but 60 minute 20 bar exponential moving average, tail. Sideways more likely
  • Bar 5 - Fail, failure breakout 76 top of lower trading range, second entry sell, but good buying pressure so low probability sell or short
  • Bar 6 - Two legged pullback in a bull move but tight trading range, bad for scalping with stop entries unless using swing stop. 60 minute 20 bar exponential moving average. Better to wait
  • Bar 7 - Final flag 6 two legged pullback in a bull move at moving average, five tick failure fail, failure, but bull body, tight trading range, bad for scalping with stop entries unless using swing stop. Better to wait
  • Bar 12 - Double bottom 4, but doji, tight trading range, bad for scalping with stop entries unless using swing stop. Swing only, but higher probability to wait
  • Bar 15 - Lower high major trend reversal but bull body so lower probability
  • Bar 18 - Fail, failure breakout but dojis. Might be in bear channel for test of close of yesterday. Too many bear bars at top of 2 day trading range so more down likely
  • Bar 21 - Lower high major trend reversal second entry sell, probably bear channel down to close of yesterday. Ok swing sell or short
  • [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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