E-mini S&P bulls look for follow-through

Brooks Price Action - 08-17-2012 Friday

pending chart 1516

Trading range day, smallest day of the year

  • Friday, August 17, 2012
  • Bar 1 - Reversal down from high of yesterday but 2t tail and just above moving average so probably buyers scaling in below
  • Bar 3 - Another bear breakout but bulls want or at moving average
  • Bar 4 - Bull reversal bar, or at moving average but 2t tail so better to wait
  • Bar 8 - Bull outside bar surrounded by inside bars, double bottom 4, ok swing buy or long, but tight trading range so higher probability to wait for breakout
  • Bar 9 - Bear reversal bar, fail, failure outside bar surrounded by inside bars, possible triangle 1 7, but tight trading range. Higher probability to wait for breakout up or down
  • Bar 13 - Bull reversal bar, double bottom 4. Ok swing buy or long but better to wait for breakout since still in bear tight channel
  • Bar 16 - Follow through on bear breakout 15, but double bottom 78. Don't buy or long unless get strong bull breakout pullback since bear channel can go far
  • Bar 21 - Two legged pullback in a bear move at moving average but bottom of tight trading range and still always in long from yesterday. Better to wait for breakout
  • Bar 22 - Double bottom bull flag 16 from 78 bottom, but bear body
  • Bar 26 - Breakout but 1t bull body. Still always in long, and now 4 consecutive bull bodies. Better to wait for stronger bull bar, but aggressive bulls will buy or long close and put stop below 26 or 25 for possible swing up
  • Bar 27 - 5 bars up. Two legged pullback in a bear move but probably buyers below. Swing bulls will probably exit below 23 and maybe below 26 breakout. Bulls need big bull trend bar to convince traders that there will be follow through, else small trading range day continues
  • [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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