Monday's price action trends lower: Brooks

Brooks Price Action Analysis for Monday, Jan. 13

pending chart 2540

Double top major trend reversal and wedge top, lower high major trend reversal, breakout below neckline of double top on daily, consecutive sell climax

  • Monday, January 13, 2014
  • Bar 1 - Opening reversal but top of trading range so low probability, big bar so high risk. Ok swing buy or long but better to wait
  • Bar 2 - High of yesterday, but strong 1. Ok swing but better to wait. Probably still always in long from 1 and yesterday
  • Bar 3 - Bull reversal bar, tight trading range, bad for scalping with stop entries unless using swing stop. On swing buy or long, stop below 1, and swing sell or short, stop above 2. Better to wait
  • Bar 5 - Second entry sell but tight trading range, bad for scalping with stop entries unless using swing stop, always in long, buyers at the low of the bar and probably scaling in lower
  • Bar 6 - Two legged pullback in a bull move but bear bar, top of trading range, better to wait
  • Bar 8 - Breakout but tail, small bar, top of trading range. Still always in long
  • Bar 9 - Lower high major trend reversal but 1t body so low probability. Swing or wait. Trading range pa so far, but probably buyers at the low of the bar and probably scaling in lower since always in long, weak bull channel. Should soon get either strong breakout above 2 week trading range and measured move up or wedge top and high of the day
  • Bar 13 - Double top major trend reversal, wedge 2 9, ok swing for possible high of the day, but tail. I will sell or short in sim acct for 4 profit target swing
  • Bar 15 - Filled on sell or short, stop abov4e 13. Trading range pa so pullback likely before 4 profit target profit. Wedge so two legs down likely
  • Bar 20 - Bear follow through from 19 breakout, always in short. Pullback likely since still trading range pa. Ok to exit with 2 points, but two legs down likely
  • Bar 22 - Breakout pullback sell or short but bottom of trading range day so don�t sell or short for scalp. Ok swing but pullback likely since trading range day. Possible buyers at the low of the bar and probably scaling in lower
  • [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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