E-mini S&P faces several days of sideways price action

Big gap down on Wednesday, but no urgency

chart 1267

Wednesday, March 7, 2012

  • Bar 1 - Y(yesterday) was a big G(gap) down but no urgency so might go SW(sideways) for several days. G(gap) but doji so BRS(buyers) below.
  • Bar 4 - Strong bear bar, 2 pushes down to BRS(buyers) above but TTR(tight trading range) so not strong.
  • Bar 6 - 5T(five tick failure) F(fail, failure), doji EB(entry bar) so weak. Ok to exit. FF(final flag) but doji SB(signal bar) so LP(low probability) swing S(short). Still on 4 swing B(buy), also LP(low probability). Better to wait. Experienced traders see TTR(tight trading range) and are fading with lims.
  • Bar 9 - BP(breakout pullback) B(buy), strong bull IB(inside bar), but not at clear support and 9 SW(sideways) bars so LP(low probability).
  • Bar 10 - W(wedge) 1 6, but bull doji so not strong.
  • Bar 12 - H2(2 legged pullback in a bull move), MA(moving average), bull body, but only 2t body and 1t tail so not strong. Not H(high) P(probability) to enter on stops in TTR(tight trading range). Range about half average range so should get BO(breakout) and double range, maybe TTRD(trending trading range day). Better to wait for BO(breakout).
  • Bar 14 - F(fail, failure) BO(breakout), but bulls see as setting up BP(breakout pullback) B(buy).
  • Bar 16 - Bull IB(inside bar) at MA(moving average), BP(breakout pullback) B(buy). HR(higher) P(probability) than most other trades so far, but still TTR(tight trading range) and NHEP(not high enough probability) for scalp. Ok swing B(buy). HR(higher) P(probability) to B(buy) BO(breakout) above 10 or S(short) BO(breakout) below 12.
  • Bar 19 - BO(breakout), good size. Tail so a little weaker, but bulls BG(buying) and will put stop below.
  • Bar 20 -FT(follow through), more up.
  • [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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