Thursday price action attempts some gains: Brooks

Brooks Price Action Analysis for Thursday, Jan. 30

pending chart 2583

Trend from the first bar bear, opening reversal, wedge top, lower high major trend reversal

  • Thursday, January 30, 2014
  • Bar 1 - Gap up near top of 3 day trading range, small bar, tails, sellers at the high of the bar and probably scaling in higher buyers at the low of the bar and probably scaling in lower. Trading range so gap should close
  • Bar 2 - Trend from the first bar bear, sellers at the high of the bar and probably scaling in higher 1 so probably sellers below or signal bar 2 and then close the gap above high of yesterday
  • Bar 4 - Two legged pullback in a bull move but bear body so sellers at the high of the bar and probably scaling in higher
  • Bar 5 - Breakout pullback sell or short but swing only since low probability at bottom of weak channel
  • Bar 6 - Micro double bottom but no bull bars today so sellers at the high of the bar and probably scaling in higher
  • Bar 7 - Strong outside up bar but top of 4 bar tight trading range so sideways more likely.
  • Bar 8 - Breakout pullback sell or short but bottom of weak channel so buyers at the low of the bar and probably scaling in lower
  • Bar 10 - Opening reversal 60 minute 20 bar exponential moving average, wedge 4 7, but only 1 bull bar today so sideways more likely. Swing, but better to wait
  • Bar 15 - Lower high major trend reversal, wedge 8 12 but 6 consecutive bull bars, probably always in long and buyers at the low of the bar and probably scaling in lower, swing stop below 10. Trading range day likely. Low probability sell or short
  • Bar 17 - Breakout pullback buy or long but doji, wedge top, so probably sellers at the high of the bar and probably scaling in higher for two legs down. Probably always in long, stop below 10, but trading range day likely
  • Bar 19 - Breakout pullback sell or short for two legs down but small trading range day and better to enter with limit order orders, buying in lower 3rd below bars and selling in upper third above bars. Always in long, buyers at the low of the bar and probably scaling in lower, but tight trading range, bad for scalping with stop entries unless using swing stop
  • [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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