E-minis breakout above weak bull channel

Brooks Price Action - 04-24-2012 Tuesday

pending chart 1340

Bull breakout of weak bull channel, then higher high and lower high major trend reversal in trading range day, and then wedge bull flag, expecting strong AAPL earnings

  • Tuesday, April 24, 2012
  • Bar 1 - Yesterday = weak bull channel so bear flag, but 60 minute 20 bar exponential moving average just above so might get bull breakout. Tails so bad for stop entry
  • Bar 5 - Bear inside bar, 2nd reversal down from bull breakout above bull channel so possible high of the day, but report soon and tight channel so better to wait
  • Bar 7 - Big bull bar, close near high. More up. Always in long. Might be buy vacuum test of 60 minute 20 bar exponential moving average and high of the day
  • Bar 8 - Follow through so more up, but tail so might go sideways soon.
  • Bar 9 - Bear inside bar, br, fail, failure breakout above 60 minute 20 bar exponential moving average and bull channel, but bull breakout looks stronger so still always in long. Maybe 30% chance high of the day so ok swing short, but better to wait
  • Bar 12 - One legged pullback in a bull move but 3 dojis so more sideways likely
  • Bar 14 - Double top but 1t bear body. Buyers below
  • Bar 16 - Fail, failure breakout but strong bull bar so buyers below
  • Bar 19 - 1t new high of the day, strong bear reversal bar, but still always in long and weak bull channel. Maybe 40% chance high of the day so ok swing short but not scalp
  • Bar 20 - Five tick failure fail, failure, bull channel, test of moving average, but still might be on 19 short so not strong buy. Might be followed by major trend reversal top
  • Bar 22 - Bear reversal bar, wedge 8 19, close on low, weak bull channel since 9 yesterday, higher high major trend reversal. Ok swing short. Trading range since 8 so buy low sell high and scalp, but better to swing since not high probability yet. If get quick profit without pullback, ok to scalp part or all
  • [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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