E-minis watch for a breakout after trading range day

Brooks Price Action - 04-18-2012 Wednesday

pending chart 1334

Trading range day after strong bull day so breakout mode. Should test below last week's low and bottom of 60 minute channel soon.

  • Wednesday, April 18, 2012
  • Bar 1 - Yesterday strong bull day with bear close. Gap down. Doji so sellers above but since strong up yesterday, sellers will probably wait to short 1 -2 points up for scalp big up, big down trading range day likely
  • Bar 3 - 3 bull bars, buyers below
  • Bar 4 - 4th bull bas and trending closes, room to moving average, buyers above, but tails so wait or scalp
  • Bar 6 - Two legged pullback in a bear move but 6 bars up so buyers below
  • Bar 7 - Bull inside bar, fail, failure two legged pullback in a bear move but near moving average and many dojis so better to wait for short
  • Bar 10 - Wedge at moving average and weak bull in probably trading range so ok short, but bull body and 9 of 10 bars had bull bodies so ok to wait
  • Bar 13 - Strong bull reversal bar, higher low major trend reversal, fail, failure breakout 7 9 double bottom, double bottom 4. Always in long
  • Bar 14 - Strong bull bar but needs to get breakout above 10 with follow through, else weak bull or trading range
  • Bar 15 - Good follow through but need more. Close only at 10 high and not above
  • Bar 16 - Bull body but close not above 10. 4 bull bars so buyers below, but bears see expanding triangle 6 10, big two legged pullback in a bear move 10, moving average gap bar. 4 bar bull spike so better to look to buy pullback. Sharp enough down to 1 so market might need to test it and form large double bottom for move above high of yesterday
  • Bar 19 - Outside bar surrounded by inside bars 2nd entry short, large two legged pullback in a bear move, but doji and strong bull spike so higher probability to look to buy pullback
  • [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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