E-minis look for move higher after pullback

Brooks Price Action - 04-16-2012 Monday

pending chart 1330

Trending trading range day and trend resumption bear. Looks like will hit bottom of 60 minute channel around 1350 soon

  • Monday, April 16, 2012
  • Bar 1 - Yesterday had 1t breakout 50 then bear breakout, and now another bull breakout so odds favor more up after pullback. Might get or test of moving average. Yesterday = mostly tight trading range so might get stuck there
  • Bar 2 - Bear inside bar, no tails, so strong bar and possible high of the day, but more likely buyers around moving average after bull and then bear and then bull breakout
  • Bar 3 - Another bear bar, no tails so strong. Odds still favor breakout pullback buy
  • Bar 5 - Big bear bar breakout so always in short and maybe measured move down. Should hold above low of yesterday, but might get reversal up from below in expanding triangle 36 81
  • Bar 7 - Bear bar with tail, higher low major trend reversal. 7 bars down in trend from the first bar bear so sellers above
  • Bar 8 - Breakout pullback short but doji and just above low of yesterday so either scalp or wait
  • Bar 9 - Biggest bear bar of day, 3rd consecutive sell climax 3 5. Should be exhaustion gap and near low of the day. Less likely, crash. Might get 2nd leg up on 60 minimum or minutes chart and rally to around 1400 before bigger 2nd leg down
  • Bar 11 - Inside bar, fail, failure breakout low of yesterday, consecutive sell climax, lower low major trend reversal, but doji so not strong bottom. Wait
  • Bar 13 - Breakout pullback short but 2 bull bars. Probably buyers below and should enter trading range for maybe hours
  • Bar 14 - Higher low but bear body. Trading range most likely, but should test 9 high at some point and the 5 gap
  • Bar 16 - Bull breakout of bear flag but at moving average and probably trading range soon. Trading range buy low sell high and scalp, and now high so better to look for short setups soon. Less likely, reversal day and bull channel for rest of day. 50% probability 10 is low of the day, 70% chance any new low won�t go much lower. Also less likely is that 1 � 10 is big bear spike and day will be huge bear spike and channel. Odds favor trading range and test of 5 gap at some point and probably low of the day as well
  • [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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