Large flag reversal puts pressure on E-minis

pending chart 1363

Large final flag reversal

  • Friday, May 11, 2012
  • Bar 1 - Gap down but bear breakout of three-day trading range after six-day bear spike. Probably final flag reversal. Bull bar, 1t tail, ok buy for swing and scalp
  • Bar 2 - Weak follow through. More up
  • Bar 3 - Strong bull bar. More up, always in long
  • Bar 6 - Strong bear reversal bar, or short, but trend from the first bar bull so only look to buy. Breakout pullback buy but just below moving average
  • Bar 7 - Big bull breakout but tail at moving average so odds favor sideways. Target is pink line = open of week. Weekly chart trying to form two legged pullback in a bull move at moving average and bulls would like bull body = close above pink line. Yesterday = trading range day so might go sideways in there for hours and then bulls will try for trend resumption day and bears will try for bear reversal day
  • Bar 8 - One bar final flag, consecutive buy climax at moving average, bear reversal bar so sellers above, but better to look to buy pullback since strong bull. Less likely, breakout pullback buy
  • Bar 11 - 2 more big bull bars so will attract sellers, mostly bulls taking profits
  • Bar 12 - Another bear inside bar and breakout buy but too many consecutive buy climax so probably sellers above. Bulls will begin to scale out and bears in. Market should enter tight trading range for hours
  • Bar 15 - Reversal bar above open of week. Ok scalp short with stop above since odds favor tight trading range for hours = buy low sell high and scalp
  • Bar 18 - One legged pullback in a bull move, bull bar, but 70% chance of tight trading range for hours so probably sellers above
  • Bar 19 - Two legged pullback in a bull move 17, but high up in probable trading range so better to wait and look to buy low sell high and scalp, this is a little high. Best = buy above small bull bars near bottom and short below small bear bars near top. If continues in strong trend up, chase it up, but far more likely to enter tight trading range after so many consecutive buy climax and market at s/r of open of week and all 3 mas within 4 day trading range
  • [more Bar-by-Bar Analysis in the Forums at]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at, 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

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