E-minis pulled lower after gap down bear

Brooks Price Action - 04-04-2012 Wednesday

pending chart 1321

Gap down bear, then higher low and major trend reversal

  • Wednesday, April 4, 2012
  • Bar 1 - Yesterday had wedge rally into close of day forming double top. Gap and bear body but tails so probably sideways. Wait
  • Bar 2 - Two bar revresal but not very big compared to yesterday. 30% chance low of the day, better to wait
  • Bar 3 - Breakout pullback short but 2 bull bodies. Wait
  • Bar 5 - Two bar revresal but sideways. Wait
  • Bar 6 - Outside bar surrounded by inside bars two legged pullback in a bear move short but report and doji. Wait
  • Bar 8 - Close on low, end bear bar, always in long. Since small range so far, might become big bear trend. Ok swing on close and below
  • Bar 10 - Doji inside bar so possible final flag. Probably buyers below. If short, scalp
  • Bar 14 - Outside up bar, two bar revresal, but steep bear tight channel. Wait
  • Bar 15 - Outside bar surrounded by inside bars, double top 11 so two legged pullback in a bear move, ok short since strong bear, but doji so might be final flag. Ok to wait
  • Bar 19 - Two bar reversal, two legged pullback in a bear move final flag 15, but tight channel. Need strong bottom in strong bear, else start of bear flag. This is not strong. Wait
  • Bar 21 - Bear inside bar, double top 14. Not strong short after 2 bull bars and 14, but since only small tail, not strong buy, so odds are sideways, maybe to moving average for possible 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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