E-minis range bound after gap up

Brooks Price Action - 05-29-2012 Tuesday

pending chart 1383

Gap, buy climax, bear breakout, wedge bull flag and higher low major trend reversal

  • Tuesday, May 29, 2012
  • Bar 1 - Yesterday = weak bear channel = bull flag. Gap. 3t tail so buyers below.
  • Bar 2 - Inside bar but 3t tail so sideways likely = trading range = scalp or wait
  • Bar 5 - Trend from the first bar bull so buyers below, but their stops are below low of the day
  • Bar 7 - Strong outside up bar but top of 5 bar tight trading range so lower probability so swing buy for breakout, or wait
  • Bar 9 - Breakout but tail so not strong. Still in tight channel since 2 so better to buy pullbacks and only short 2nd entry shorts. Traders buying closes with stop below 9
  • Bar 12 - 6 bars up, tight channel, more up
  • Bar 13 - Big bar so buy climax. Still always in long. Buyers below
  • Bar 14 - Bear reversal bar but tight channel so buyers below. After 13 buy climax, probably sideways to down, but still always in long
  • Bar 15 - One legged pullback in a bull move but after buy climax so sideways more likely. Sellers above. Might test 9 gap and moving average
  • Bar 17 - 2nd entry short but smaller bear bar and 1t better probability so sideways more likely. Not strong short
  • Bar 22 - Two legged pullback in a bull move but 2 dojis so not strong buy. Might have to test 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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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