Friday price action drifts sideways: Brooks

Brooks Price Action Analysis for Friday, Jan. 31

pending chart 2587

Fail, failure breakout low of yesterday, higher low major trend reversal, wedge top, possible triangle buy or long, wedge top

  • Friday, January 31, 2014
  • Bar 1 - Gap down, double bottom 2 days ago, bull reversal bar, ok swing buy or long, but just above bottom of 5 day trading range so lower probability since might need to fall below support
  • Bar 2 - Breakout pullback sell or short but still always in long until falls below 1. Trading range pa. Probably buyers at the low of the bar and probably scaling in lower
  • Bar 3 - Fail, failure breakout low of yesterday second entry buy, always in long, outside up bar, micro double bottom, but tail, close below high of 2 so lower probability. Ok swing
  • Bar 4 - Breakout, possible measuring gap, but need follow through,
  • Bar 5 - Two legged pullback in a bear move 2, weak follow through. Low probability sell or short since weak double bottom, 3 strong bull bars, but weak rally so buyers at the low of the bar and probably scaling in lower and probably trading range or bull channel
  • Bar 6 - Bear close, bull channel, ok swing buy or long. Bears need more. Traders sellers at the high of the bar and probably scaling in higher and buyers at the low of the bar and probably scaling in lower, channel
  • Bar 9 - Wedge 1 5, possible high of the day, but bull body so low probability. Bulls want breakout above fail, failure wedge, then measured move up
  • Bar 12 - Breakout but need follow through, else trading range
  • Bar 13 - Breakout pullback sell or short but bull body. Always in short but possible buyers at the low of the bar and probably scaling in lower. Probably always in short, stop above 10 or 12, but trading range more likely
  • Bar 14 - Higher low major trend reversal, fail, failure breakout, but doji, low probability. Might test 9 high and get double top near moving average
  • Bar 16 - Breakout, big bar, close on high, more up
  • [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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