E-minis may be stuck in trading range for a while

Brooks Price Action - 05-23-2012 Wednesday

pending chart 1376

Double top bear flag, wedge bottom and lower low major trend reversal, then higher low major trend reversal and reversal day

  • Wednesday, May 23, 2012
  • Bar 1 - Yesterday = bear reversal day. Trading range likely on daily for a week or two. Tails for buyers below, sellers above
  • Bar 2 - Bear inside bar but tails so probably buyers below. Just above bottom of channel from 2 days ago so probhas to fall below it since trading range pa so far
  • Bar 3 - Strong bear bar so might be ok buy above, but just above s/r so better to wait
  • Bar 5 - Strong bull reversal bar from test below bottom of channel from 2 days ago. 50% chance low of the day. Ok buy but trade small since report soon.
  • Bar 8 - Outside bar surrounded by inside bars, trading range day so far. Scalp only, but probably better to wait. Range about half of yesterday so might get trending trading range day.
  • Bar 10 - Breakout so might get trending trading range day
  • Bar 11 - Bear follow through so more down. Tail so not strong
  • Bar 12 - Bull reversal bar but doji so not strong. Swing buy since low probability. Better to wait. Breakout pullback short below but big tail in short the closes spike so probably 1 - 2 more bars down, then trading range
  • Bar 15 - Bull reversal bar, one bar final flag, but tail and tight channel so not strong buy. Not strong breakout pullback short below. Should enter trading range soon for trending trading range day
  • Bar 16 - Measured move from 68 76 bear spike yesterday and from today's upper trading range so should be buyers.
  • Bar 17 - Two bar reversal, microwedge 12 14. Should enter trading range and test moving average, but not strong buy yet since tight channel
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

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