E-minis breakout amid bear channel

Brooks Price Action - 04-20-2012 Friday

pending chart 1338

Breakout above yesterday bear channel = bull flag. Lower high major trend reversal

  • Friday, April 20, 2012
  • Bar 1 - Yesterday had a big bear channel, but it stayed above the bull low from a couple of days ago so might be bull flag. Breakout at end of day yesterday. Gap but doji so buyers below, sellers above
  • Bar 2 - Fail, failure breakout. Probably sellers below. Tight channel so scalp or wait
  • Bar 4 - Weak bull bar compared to strong bear bar, but two legged pullback in a bull move at 60 minute 20 bar exponential moving average so possible low of the day so ok swing buy
  • Bar 7 - Two bar revresal, 2nd attempt to fail, failure breakout above bull channel, fail, failure two legged pullback in a bull move so possible final flag and high of the day. Ok swing short. Tight trading range so higher probability to wait for breakout
  • Bar 8 - Big bull reversal bar off 60 minute 20 bar exponential moving average but top of tight trading range, like 19 yesterday. Wait
  • Bar 10 - Wedge 2 7 but doji so weak signal bar
  • Bar 11 - Fail, failure wedge but doji. Still better to wait for breakout up or down
  • Bar 13 - Close above 12 so breakout. Might be measuring gap. Weak bull channel. More up but not strong
  • Bar 14 - 2nd strong bull bar but might be buy climax. Better to not buy close
  • Bar 15 - Two bar revresal, final flag 1-11, but steep up. Ok swing short but better to wait
  • Bar 16 - Breakout pullback buy but bear bar. 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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