E-mini S&P trades in tight bear channel

Brooks Price Action - 08-08-2012 Wednesday

pending chart 1498

Fail, failure bear breakout of yesterday bear channel, higher low major trend reversal. Trending trading range day, large two legged pullback in a bull move pullback

  • Wednesday, August 8, 2012
  • Bar 1 - Yesterday = tight channel bear. Bull reversal bar at 60 minute 20 bar exponential moving average after bear breakout of bear channel so target is top of channel. 1t tail so ok swing buy or long
  • Bar 2 - Big bull bar, 1t tail. Always in long
  • Bar 3 - Bear doji, buyers below
  • Bar 4 - Bull reversal bar. Ok swing buy or long
  • Bar 5 - Two legged pullback in a bear move but doji. Buyers below. Trying to test top of bear channel
  • Bar 6 - Fail, failure two legged pullback in a bear move but doji and tight trading range. Ok swing buy or long since still always in long
  • Bar 8 - 2nd entry. Tight trading range, but ok swing buy or long
  • Bar 9 - Breakout attempt but close below 5 high and moving average so not strong
  • Bar 10 - Two legged pullback in a bear move 5, at moving average, but bull body and only 2 1t bear bodies all day so still always in long. Better to not sell or short
  • Bar 14 - Fail, failure breakout, double bottom bull flag 4, always in long, so ok swing buy or long. Variant of higher low major trend reversal since 10 bars up to moving average and then 3 bar higher low
  • Bar 20 - Bull three inside bars in a row at top of tight trading range and after 2 strong bull bars. Still always in long and in breakout mode. Bears can swing sell or short below for double top bear flag, but higher probability to wait for breakout below 14. Probably trending trading range day. Ok to be long or to buy or long above or above 10, looking for at least a measured move up and trending trading range day
  • [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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