Wednesday price action gives back modest gains: Brooks

Brooks Price Action Analysis for Wednesday, Jan. 29

pending chart 2579

Lower low major trend reversal, higher low major trend reversal, double top

  • Wednesday, January 29, 2014
  • Bar 1 - Lower low major trend reversal, strong bull bar, ok swing and scalp buyers above. Breakout pullbacks but probably buyers at the low of the bar and probably scaling in lower since bottom of 2 month trading range
  • Bar 2 - Lower low major trend reversal, micro double bottom, ok buy or long for possible low of the day
  • Bar 4 - Two legged pullback in a bear move 1, but always in long, buyers at the low of the bar and probably scaling in lower, stop below 2
  • Bar 6 - Bear outside bar surrounded by inside bars but always in long. Tight trading range, bad for scalping with stop entries unless using swing stop, sellers at the high of the bar and probably scaling in higher for scalp but better probability to either be long or flat
  • Bar 8 - Wedge 1 3,17t fail, failure, but bull bar, middle of tight trading range, so low probability sell or short. Sideways likely. Breakout but too much sgc so probably trading range and not bull.
  • Bar 9 - Big bear bar, more down, but trading range likely
  • Bar 12 - Higher low major trend reversal, micro double bottom, but 4 bear bars, 2 doijs, sideways likely. Breakout pullback sell or short but buyers at the low of the bar and probably scaling in lower so probably will go above 12, not below
  • Bar 17 - Double top 8 at moving average, two inside bars, but always in long, probably buyers at the low of the bar and probably scaling in lower. Tight trading range, bad for scalping with stop entries unless using swing stop, low probability swing sell or short or buy or long. Limit order order market
  • Bar 18 - Two legged pullback in a bull move 16, fail, failure two inside bars, always in long, ok swing but at moving average and not high enough probability unless swing stop and scale in for scalp
  • Bar 20 - Double top 8 at moving average, second entry sell top of trading range, ok sell or short. Still always in long and still on buy or long 18
  • Bar 22 - Outside down bar but higher low 18, still in bull channel and always in long. Wait to sell or short. Channel, so better to buy or long with limit order orders below bars
  • [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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