E-minis show tight range and major trend reversal

Al Brooks Price Action from Wednesday, March 28

pending chart 1310

Tight trading range, Consecutive sell climax, lower low, and major trend reversal

  • Wednesday, March 28, 2012
  • Bar 1 - Yesterday = ended with 3 consecutive sell climax 71 76 81 so might get more complex pullback to around moving average. Several targets below. Doji and moving average just above so probably sellers above and then trading range
  • Bar 2 - Strong bull bar to moving average, but wedge 77 79 so breakout pullback short. Ok short but since consecutive sell climax, ok to buy reversal up instead
  • Bar 4 - 4th consecutive sell climax so better to only to look to buy for approx. Ten bar, two-legged correction sideways to up. Bear trend so better to only buy on stop above bull bar
  • Bar 8 - Double top 2 at moving average, possible high of the day, but good buying pressure and cxb so probably buyers below
  • Bar 11 - Breakout pullback short but bull bar. Not good buy above because too high up in trading range
  • Bar 13 - Bear breakout. Might get measured move down, but another consecutive sell climax so look for reversal up soon for low of the day
  • Bar 15 - Bull inside bar after consecutive sell climax. Ok buy for low of the day. Breakout pullback short but after consecutive sell climax, might become one bar final flag so scalp only
  • Bar 17 - Reversal bar but bear body. When bottom is not quite strong, usually another bear flag. Tails, buyers buying at low of prior after consecutive sell climax. Should find bottom of trading range soon for test up to moving average, maybe approx. Ten bar, two-legged correction
  • Bar 18 - Two bar revresal but only 2t body with 1t tail on top. Not strong bottom so probably need better. Breakout pullback short but they are buying below bars so don't short
  • Bar 20 - Outside bar surrounded by inside bars, close on high. Ok swing and scalp buy after consecutive sell climax and several bars with tails below
  • Bar 22 - Scalpers don't want pullback and will exit below or below 21. Swing traders might hold with stop below 21 or 17. Not =hp short
  • [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.

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