E-minis trade in a range but end with a triangle

Brooks Price Action - 04-19-2012 Thursday

pending chart 1336

Expanding triangle bottom then top, then parabolic wedge bottom, then test of bottom of upper trading range to become big trading range day

  • Thursday, April 19, 2012
  • Bar 1 - Yesterday was trading range day and ended with expanding triangle bottom. Big bear bar but bottom of trading range so probably sell vacuum test low of yesterday and buyers
  • Bar 2 - Breakout pullback from bear microchannel breakout on 1, test low of yesterday, expanding triangle, bull bar. Ok swing buy. 4 3 strong bull bar but still lower high. Report soon. Wait
  • Bar 6 - 2 inside bars, always in long, but report. Probably buyers below but better to wait. Still lower high 67.
  • Bar 7 - Huge bear bar, 100k contracts so probably will lead to measured move up or down
  • Bar 8 - Bear follow through so more down likely, but tails. Better to wait to short pullback if get one, but ok swing short, however, need very big stop so trade small. Better to wait
  • Bar 10 - Outside up bar but probably still always in short. Wait to see if get pullback to short breakout pullback. Market tried 2 big pushes down 1 7 but this is bad pa for bears so might be expanding triangle bottom 2nd entry and low of the day. Ok swing buy but not scalp since not high enough probability
  • Bar 11 - Breakout, more up, but probably still always in short
  • Bar 13 - Another big breakout bar and probably always in long but trading range day more likely unless get more follow through
  • Bar 14 - More follow through, always in long. Tail so maybe 1 more bar up before pullback
  • Bar 15 - More follow through but tail. Outside up bar day. Should try for pullback. Despite so many reversals for 2 days, strong enough bull spike after 2 strong bear attempts that odd favor more up after pullback
  • Bar 17 - 2 inside bars breakout pullback buy but doji and tails. Probably ok buy but better to wait since 4 bars with tails. 2 inside bars so breakout mode. Expanding triangle top 30 67, but always in long and better to not short and instead look to buy pullback or above 2 inside bars
  • [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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