E-minis test trading range with lower low

Brooks Price Action - 06-12-2012 Tuesday

pending chart 1396

Yesterday sell vacuum test of bottom of 5-day trading range, then lower low major trend reversal

  • Tuesday, June 12, 2012
  • Bar 1 - Y=had strong bear close but might be just 2 legged pullback to bottom of 1st leg down after buy climax, so might form double bottom bull flag. Strong bull bar but at steep down moving average so don't buy.
  • Bar 2 - Two bar reversal so two legged pullback in a bear move with 79. Ok short below, but also ok to wait to see if get bull bar and failed two legged pullback in a bear move
  • Bar 3 - Bull bar, failed two legged pullback in a bear move. Since 1 was logical buy, should get back to its close. Ok buy for scalp. Might be low of the day so ok to swing part but trading range more likely so ok to scalp all or most
  • Bar 5 - 3 bars up so buyers below but tails so better to wait
  • Bar 6 - Breakout pullback buy but bear body and tight trading range so bad for stop entry
  • Bar 7 - Strong bear reversal bar, wedge 1 5, possible high of the day
  • Bar 8 - Bear breakout, always in short, should test low of the day
  • Bar 9 - Follow through, sellers above and below
  • Bar 12 - Double top 10, more down. Tight trading range and bottom of 5 day trading range so should be buyers soon
  • Bar 14 - Lower low major trend reversal, bottom of 5 day trading range, but bear body
  • Bar 15 - Two bar reversal but forcing traders to buy high. Ok swing buy since lower low major trend reversal and bottom of 5 day trading range, but big bar so trade small
  • [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.

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