E-minis retracing to October 2011 high

Brooks Price Action - 05-18-2012 Friday

pending chart 1372

Higher low major trend reversal Bar 11, two legged pullback in a bear move short Bar 18, bear breakout Bar 25, lower low major trend reversal buy Bar30, then bear channel continued. Might hit oct high next week

  • Friday, May 18, 2012
  • Bar 1 - Yesterday = bear channel and 60 minimum or minutes parabolic wedge so sell climax. Breakout above bear trendline so might get major trend reversal. Bear body at moving average but tails so buyers scaling in below. 60 minimum or minutes bear microchannel with about 15 bars so probably not much more down before approx. Ten bar, two-legged correction sideways.
  • Bar 3 - Breakout pullback buy but bear body so probably sideways
  • Bar 6 - Big bear bar, close on low so possible high of the day but low probability. Swing only but better to wait
  • Bar 7 - Two legged pullback in a bull move buy, higher low major trend reversal but doji. Sideways likely
  • Bar 10 - Two bar revresal but short is below lower of 2 bars. Double bottom 8.
  • Bar 12 - Breakout mode with buyers above 10 and sellers below 10. Ok to wait for breakout
  • Bar 15 - Breakout but small bar. 6 consecutive bull bars so bull trend. Can buy or wait for bigger bull bar
  • Bar 16 - Bull breakout. Always in long
  • Bar 17 - Good follow through but at 15 minute 20 bar moving average plotted on a 5 minute chart where market has stalled for several days. Need breakout above
  • Bar 18 - Big bear bar so bad for bulls. Big two legged pullback in a bear move 1, but 7 bars up so better to not short. Look to buy pullback
  • Bar 20 - 3 bear bars, big bodies, back into trading range so not always in long and trying to become always in short. Neutral. Market is waiting fb to start trading
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

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