E-minis search for buyers at lower levels

Brooks Price Action - 05-14-2012 Monday

pending chart 1365

Gap down, small lower low major trend reversal, then wedge bear flag and higher high major trend reversal

  • Monday, May 14, 2012
  • Bar 1 - Yesterday = bear reversal day with long channel without pullback. Gap down, bull bar but 3t tail. Don't buy above
  • Bar 2 - Strong bear inside bar so ok short but might enter trading range soon since breakout below 4 day trading range in overdone bear so possible final flag
  • Bar 4 - Doji so weak buy signal bar
  • Bar 6 - Breakout pullback short but doji so not strong
  • Bar 7 - Weak entry bar. 2 sided so far, but still might be bear channel
  • Bar 9 - Breakout but tail
  • Bar 11 - Outside up bar but 10 not strong buy signal bar. Wait. Bear channel for over 70 bars without much pullback so should get pullback to moving average soon, but don't buy unless clear signal, since bear channels constantly look like bottoms, but all turn into small bear flags. Breakout pullback short but building buying pressure and overdone bear channel so might be buyers below
  • Bar 12 - Two bar revresal, micro double bottom 9, 2nd entry two legged pullback in a bull move 4, possible low of the day so ok swing buy and maybe scalp also
  • Bar 14 - Ok entry bar. Two legged pullback in a bear move short but 4 of past 5 bars up so probably buyers below
  • Bar 16 - 2 more bull bodies so more up, but not yet strong
  • Bar 17 - Breakout but moving average, double top 6. 5 bars up so probably buyers below and might get major trend reversal buy soon.
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

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