E-minis see bear rally after gap lower

Brooks Price Action - 05-08-2012 Tuesday

pending chart 1358

Gap down bear, then higher low major trend reversal

  • Tuesday, May 8, 2012
  • Bar 1 - Yesterday was bear rally. Fail, failure but doji. Wait. S/r just below so might form expanding triangle low of the day
  • Bar 3 - Outside up bar but tail. Trading range bars so far. Wait
  • Bar 5 - Bear inside bar, close near low, double top 1, but far from moving average. Swing short or wait
  • Bar 8 - Close near low. More down. Below low of april, pink line
  • Bar 10 - Outside up bar. Ok swing buy for final flag 5 low of the day but not high enough probability for scalp buy.
  • Bar 11 - Bear inside bar so breakout pullback short but not high enough probability for scalp. Swing only or wai13 another big sell climax into measured move target so sell vacuum. Probably buyers on close. Bears will take some profits. Early to go long.
  • Bar 13 - Bull reversal bar but small. Wait
  • Bar 14 - Breakout pullback short but after sell climax fo lower probability. Probably buyers below
  • Bar 17 - One bar final flag but doji. Wait to buy above bull bar and only for scalps since strong bear trend and bulls can hope only for trading range at this point
  • Bar 18 - Double top 15, but should enter trading range soon so lower probability short
  • Bar 21 - 3 more bear bar sell climax but no sign of bottom. Better to wait to short rallies, approx. Ten bar, two-legged correction sideways to up, and look to buy above small bull bar, especially if get small one bar final flag. Should soon get approx. Ten bar, two-legged correction sideways to up to moving average
  • [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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