Monday's price action slides lower

Brooks Price Action Analysis for Monday, Jan. 6

pending chart 2511

Double top high of yesterday, consecutive sell climax, higher low major trend reversal, possible triangle bull breakout,

  • Monday, January 6, 2014
  • Bar 1 - Double top 7 high of yesterday and 69, top of 2 day trading range, bear reversal bar, ok swing and maybe scalp
  • Bar 2 - Strong bear bar, always in short, more down, but middle of trading range so need wide stop.
  • Bar 3 - Big bar, sell vacuum test close of yesterday, better to exit since bottom of 2 day trading range. Bulls need breakout or second entry buy. Bears should sell or short rally
  • Bar 4 - De 78 but doji, always in short, sellers at the high of the bar and probably scaling in higher
  • Bar 6 - Bull outside bar surrounded by inside bars but tight trading range so buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher
  • Bar 8 - Double bottom 51 second entry buy but tight trading range, bad for scalping with stop entries unless using swing stop and not strong sellers below or signal bar so low probability swing. Better to wait
  • Bar 11 - Weak follow through, two legged pullback in a bear move 8, bears will sell or short close for scalp. Tight trading range, bad for scalping with stop entries unless using swing stop. Not strong enough bull channel to buyers at the low of week of the bar and probably scaling in lower
  • Bar 13 - Breakout pullback buy or long but bear bar, top of weak channel, moving average, sellers at the high of the bar and probably scaling in higher. Second entry sell below
  • Bar 16 - Higher low major trend reversal but 5 consecutive bear bars, sellers at the high of the bar and probably scaling in higher and probably sellers below or signal bar
  • Bar 19 - Expanding triangle so lower low major trend reversal, double bottom low of last week but 2t tail so low probability. Still always in short and probably more down. Swing stop above 18
  • Bar 23 - Consecutive sell climax at gap on daily chart, doji, breakout pullback sell or short. Probably buyers at the low of week of the bar and probably scaling in lower. Bears should sell or short higher after 5 -10 bars. Bulls want rally above pink low = low of last week, and above 21 high = top of most recent bear leg
  • [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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