E-mini S&Ps Friday spike sets up triangle pattern

pending chart 1421

Big gap up, then possible triangle at moving average

  • Friday, June 29, 2012
  • Bar 1 - Huge gap up, bear body, but tail so buyers below. Market is so far above moving average that probably cannot go too high before going sideways and getting closer to moving average, where there should be buyers. Back into trading range of 2 weeks ago where there were violent swings, so probably mostly sideways for a day or two. Small chance of move above last week's high
  • Bar 2 - 2 bear bars so sellers above
  • Bar 4 - Big tails, tight trading range so buyers below
  • Bar 6 - Outside up bar, trapped bears. Probably buyers above. High of the day is magnet, then measured move up
  • Bar 7 - Good bull bar, more up. Might get measured move
  • Bar 9 - 2 dojis at high of the day so trading range behavior
  • Bar 10 - Big bull breakout but might be exhaustion gap
  • Bar 11 - Strong bear reversal bar, final flag. Ok swing sell or short for high of the day, but 6 bars up so not strong scalp. Might get one more push up
  • Bar 12 - Bull doji, sellers above
  • Bar 15 - Two bar revresal two legged pullback in a bull move but bear channel. Probably sellers above. Still on swing sell or short, but also on swing buy or long, but not good swing buy or long since too far above moving average and swing stop, and 11 possible final flag high of the day
  • Bar 18 - Wedge 11 14, bull reversal bar. Ok scalp buy or long. Swing less reliable since far above moving average and probably has to get closer to moving average. Bear microchannel but bull trend so ok buy or long. Still on swing sell or short but not high probability. Still on swing buy or long, but stop too far so swing traders have to be trading 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.

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 This material may not be published, broadcast, rewritten, or redistributed.

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