E-minis wait for leg up after selling climax

Brooks Price Action - 04-11-2012 Wednesday

pending chart 1327

Gap up and large two legged pullback in a bull move. Should get leg1=leg2 up move.

  • Wednesday, April 11, 2012
  • Bar 1 - Yesterday had consecutive sell climax without pullbacks, then a rounded bottom. Gap up in middle of yesterday measuring gap so short likely. Bear bar but better to wait because sideways most likely after consecutive sell climax. If get big pullback, should get 2nd leg up after so many consecutive sell climax yesterday
  • Bar 2 - Doji inside bar so sellers above, buyers below
  • Bar 4 - Bear outside bar surrounded by inside bars but in tight trading range so not strong short. Since in middle of yesterday big gap and many consecutive sell climaxes, probable trading range day so expect reversals and weak signal bars and lots of fail, failure bos
  • Bar 6 - Two bar revresal, fail, failure outside bar surrounded by inside bars, two legged pullback in a bull move 2. Probably ok buy but not strong
  • Bar 9 - Small breakout
  • Bar 10 - Stronger breakout, 60 minute 20 bar exponential moving average above
  • Bar 12 - 2 inside bars, bull microchannel so buyers below and therefor above. But 2 inside bars near top of weak bull leg so ok to wait
  • Bar 14 - 2 inside bars final flag, two legged pullback in a bull move 2 6 final flag, but 10 bar bull microchannel and 2t tail so not high probability top. Most likely sideways to down to moving average for one more push up. Ok swing short but ok to wait
  • Bar 18 - Bull reversal bar at moving average but 4 bars down in trading range day so sellers above
  • Bar 19 - 2 inside bars but just above moving average. Sideways most likely
  • Bar 22 - 2 inside bars final flag, wedge 11 17, but doji and tight channel so better to wait
  • [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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