E-mini S&P flirts with major trend reversal

Brooks Price Action - 08-14-2012 Tuesday

pending chart 1511

Lower high major trend reversal, then wedge and possible triangle bottom with higher low major trend reversal, then consecutive buy climax top

  • Tuesday, August 14, 2012
  • Bar 1 - 5 day trading range, stalling around 1400 and at high of year for possible double top. Bull doji so sellers above, buyers below
  • Bar 5 - 5 bars up so trend from the first bar bull but lots of overlap and at high of yesterday. Better to wait
  • Bar 7 - Lower high major trend reversal. Inside bar, 2nd entry sell or short at high of yesterday. Ok swing sell or short
  • Bar 8 - Big bear bar, close near low. More down. 50% chance 5 is high of the day so ok swing sell or short
  • Bar 9 - Bear body follow through so always in short. Ok sell or short close with stop above 8 for measured move down
  • Bar 11 - Breakout, possible measuring gap. Less likely, exhaustion gap
  • Bar 12 - Strong bull reversal bar but 6 bars down so sellers above. Probably buyers below since weak spike
  • Bar 14 - Inside bar, parabolic wedge 74 9, 3 bars with tails, bottom of yesterday trading range, but 9 bars down so sellers above. Better to wait for pullback to sell or short or for bear flag and then final flag reversal up to buy or long. Still always in short so better to only sell or short. Aggressive bulls are buying near low of prior bar for scalp. Beginners should wait
  • Bar 16 - Double top 12 but tails and bull bodies so buying pressure around yesterday trading range. Low probability sell or short and probably buyers below. Better to wait. Might be final flag and then trending trading range day
  • Bar 20 - Bull reversal bar at measured move, close on high, wedge 1 12, probably trending trading range day, but tight channel and better to wait for 2nd entry buy or long, or to sell or short around moving average. Wedge so probably will get approx. Ten bar, two-legged correction sideways to up
  • Bar 23 - Breakout above bear wedge. Might get major trend reversal in about 10 bars
  • [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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