E-mini S&P range-bound after double-top

Brooks Price Action - 07-26-2012 Thursday

pending chart 1481

Gap up then double top, trending trading range day, higher low major trend reversal, reversal day

  • Thursday, July 26, 2012
  • Bar 1 - Big gap up and big bull bar so possible low of the day and swing buy or long, but just below top of gap on daily, and big gap up usually goes sideways for couple of hours to get closer to moving average. Big bar so might be buy climax. Better to wait
  • Bar 2 - Fail, failure breakout but doji so not strong sell or short and probably not high of the day
  • Bar 3 - Bear bar, close on low, but still could be breakout pullback
  • Bar 4 - Bear follow through but still above 1 low. Might be trading range. Double bottom and possible low of the day but bear body so bad buy or long. Better to wait
  • Bar 5 - Two bar revresal but middle of trading range. Wait
  • Bar 6 - 2nd entry sell or short but bottom of trading range and report. Wait
  • Bar 7 - Big reversal bar but tails and middle of trading range. This is a tight trading range and a limit order order market. Beginners should wait and not trade limit order orders
  • Bar 8 - Breakout but top of trading range and most breakout fail, failure. Wait
  • Bar 9 - Big bear bar, fail, failure breakout, double top 2, but middle of trading range. Wait
  • Bar 11 - Breakout pullback buy or long, goo bull bar, but after 2 bear bars so 2 legs down more likely. Better to wait. Far above moving average and lots of selling pressure so far so too much risk of down.
  • Bar 12 - Strong bear bar, close only, possible triangle 2, 8, trapped bulls, lots of selling pressure. Ok swing sell or short and probably also sell or short below 11 where bulls will have stops, and also below 7 since breakout mode and range is about half of average and should double. Target is moving average and measured move
  • [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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