E-minis come off trading range day

Al Brooks Price Action from Friday, March 30

Brooks chart

Trading range day with sell-vacuum test of the 60bar/20MA

  • Friday, March 30, 2012
  • Bar 1 - Yesterday had bull channel. Gap and strong bear bar so 30% chance high of the day. Should test open of week (pink line) at 140175 since so close. Ok swing and scalp short, but too perfect and channel up from 30 is a tight channel so sideways likely. Stop above
  • Bar 2 - Good bull reversal bar, breakout pullback buy, but not as strong as 1 and bears still see it on 1 short. Some bears will exit here, but better to not buy since only low probability buy. Probably sellers below but short so better to wait
  • Bar 4 - Two legged pullback in a bull move but bear body and small bar and not at s/r so sellers above
  • Bar 6 - Strong bear reversal bar, double top 3, fail, failure two legged pullback in a bull move. Ok swing short below for high of the day, but sideways so far so lower probability
  • Bar 7 - Wedge, but not at s/r. Bull reversal bar, but again not as strong as 6. Might be low of the day but better to wait to see if get strong breakout
  • Bar 8 - Fail, failure wedge. Breakout mode so buyers above 6 start of bear and sellers below 7 start of bull. Should get measured move up or down
  • Bar 10 - Bear breakout but tail so not strong yet
  • Bar 11 - Another bear bar. Moving average created tail, but 4 bars down so sellers above. Should test close of yesterday. Swing bears have stops above 9
  • Bar 12 - 4th bear body. Odds favor sellers above
  • Bar 14 - 2 big bear bars down to 60 minute 20 bar exponential moving average and 15 minute 20 bar moving average plotted on a 5 minute chart so sell vacuum and sell climax. Bears will buy back shorts and bulls will buy close for scalp up. Trading range likely
  • Bar 15 - Strong bull reversal bar, 15 minute 20 bar moving average plotted on a 5 minute chart, double bottom 72. Trading range likely. Probably sellers around moving average so not strong buy scalp above. Possible sell vacuum test of 60 minute 20 bar exponential moving average and low of the day but 6 bars down so trading range more likely
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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