E-mini S&P trading range bottom in place?

Al Brooks reviews daily price action

chart 1266

Tuesday, March 6, 2012

  • Bar 1 - Y(yesterday) was a TR(trading range). Big G(gap) so might be BAG(breakaway gap) and start of 100 PT(profit target) bear leg on daily (see my sunday post). Doji so SRS(sellers) above, BRS(buyers) below.
  • Bar 2 - Strong bear bar so ok S(short), but doji and small bar on 1 so might be TR(trading range). Big G(gap) days often enter trs for at least an hour.
  • Bar 5 - RB(reversal bar), H2(2 legged pullback in a bull move), but bear bar. Don’t B(buy).
  • Bar 8 - IOI(outside bar surrounded by inside bars) but 7 bars down so not strong B(buy). Weak bear channel so not strong S(short) either. PROB(probably) will evolve into TR(trading range).
  • Bar 11 - Big bar below bottom of big bear channel. Bear BO(breakout) of bear channel usually reverses, but sometimes needs 2nd signal.
  • Bar 12 - Bull IB(inside bar), 2BR(two bar revresal), F(fail, failure) bear BO(breakout) of bear channel. PROB(probably) ok B(buy) scalp, and maybe swing. Odds favor TR(trading range) after weak bear channel.
  • Bar 15 - DT(double top) 7 but doji and 4 bars up so not strong S(short). TR(trading range) likely after weak bear channel.
  • Bar 17 - Big bar so another SX(sell climax). DB(double bottom), but bear body.
  • Bar 18 - IB(inside bar) so BP(breakout pullback) S(short) but bottom of likely TR(trading range) so PROB(probably) BRS(buyers) below. 2rb but doji so not strong B(buy) above, despite 2nd FD(failed) attempt at bear BO(breakout) of big bear channel. TR(trading range) most likely.
  • Bar 19 - OU(outside up bar), big bar, but top of TR(trading range). Wait.
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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