Thursday price action sinks, recovers: Brooks

Brooks Price Action Analysis for Thursday, Jan. 23

pending chart 2561

Trend from the first bar bear, wedge bottom, double top, bear possible triangle, final flag bottom

  • Thursday, January 23, 2014
  • Bar 1 - Big gap and big bear bar,t1b bear, possible high of the day, but tail so possible sell climax. Far from moving average so likely sideways to moving average. Low probability sell or short
  • Bar 3 - Fail, failure breakout, close on high, far from moving average. Possible low of the day so ok swing. Probably ok scalp since micro double bottom, fail, failure breakout, far from moving average
  • Bar 4 - Breakout pullback sell or short but doji, sell climax, at prior major low so probably buyers at the low of the bar and probably scaling in lower and then closer to moving average. Ok swing sell or short
  • Bar 6 - Outside down bar so probably will get breakout to new low of the day, but downside probably limited until closer to moving average. Targets below
  • Bar 10 - Big outside up bar at trend channel line. If buy or long, trade small. Not strong buy or long, 60 minimum or minutes trendline below. Went above 3 low so breakout below 10 probably will come back above 10 low because bulls will probably buyers at the low of the bar and probably scaling in lower
  • Bar 11 - Breakout pullback sell or short but 2 good bull bars, hit trend channel line, far from moving average. Higher probability to only sell or short higher. Ok to buyers at the low of the bar and probably scaling in lower if wide stop and scale in . Most should wait to buy or long with stop above strong bull bar, like 10
  • Bar 13 - Bull reversal bar, ok swing buy or long, especially if wide stop and scale in , but small body, bear channel, so not yet strong. Bears are selling above bars since channel. 60 minimum or minutes trendline = magnet just below. Good tails and bull bodies so should enter trading range soon
  • Bar 14 - Double top 10, bear channel, but probably buyers at the low of the bar and probably scaling in lower 13
  • Bar 16 - Breakout pullback buy or long but tails, channel, probably buyers at the low of the bar and probably scaling in lower 13. If buy or long or sell or short, wide stop and scale in . Bear channel, target below
  • Bar 20 - Wedge 3 10, 60 minimum or minutes trendline 1t below so tested, bull inside bar, but tight channel. Ok buy or long for scalp, especially if wide stop and scale in . Bears will sellers at the high of the bar and probably scaling in higher and near moving average. Lots of tails so trading range likely soon so better to sell or short higher, near moving average. Bulls want trading range, maybe to 13 high and moving average
  • Bar 23 - Breakout pullback buy or long but at moving average so probably sellers at the high of the bar and probably scaling in higher
  • [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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