E-mini S&P trends after big gap down

Brooks Price Action - 07-23-2012 Monday

pending chart 1477

Big gap down, or, trending trading range day

  • Monday, July 23, 2012
  • Bar 1 - Big gap down, close on low so ok to sell or short close for swing
  • Bar 2 - Close on low so more down
  • Bar 3 - Big bear bar so breakout. Might be exhaustion gap. Ok sell or short close
  • Bar 4 - Bear bar but tail so probably 1 & 2 more bars down then pullback. Sell or short close but scalp
  • Bar 5 - Strong outside up bar but steep bear so sellers above. Low probability swing buy or long. 16t below 1 so probably 70% chance of hitting 17t or 18t within a few bars
  • Bar 6 - Two legged pullback in a bear move 22 but 2 good bull bars so buyers below and sideways
  • Bar 10 - Double bottom 5, close on high, 2nd entry or. Ok swing buy or long. 2nd failed attempt a 17t
  • Bar 12 - Two legged pullback in a bear move sell or short but still on 10 buy or long. Low probability sell or short. Buyers below and above. Bulls need breakout
  • Bar 14 - Big breakout bar. Becoming always in long. More up. Traders buying as bar is forming and on its close, expecting test of high of the day and moving average and probably measured move up
  • Bar 15 - Close on high, follow through, no tails on bottoms of 14 15, always in long. Swing stop below 14. Should have approx. Ten bar, two-legged correction sideways after big gap down and strong bottom. Ok to scalp out part at 2 points since actual risk only five tick failure. 2 bar bull spike so more up and maybe spike and channel bull. More likely, trending trading range day since steep down moving average
  • Bar 16 - Fail, failure breakout, double top 1, but always in long so buyers below
  • [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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