E-mini S&P failed downside move turned market bullish

pending chart 1517

Opening Range sell, then fail, failure breakout low of yesterday, higher low major trend reversal, trading range day

  • Monday, August 20, 2012
  • Bar 1 - Yesterday was smallest day of yesterday so breakout mode. Double top on daily so might get big breakout up or down. Market often rallies around Aug. 30 for about a week after labor day, so tends to sell off before. Open = low of the day, which is rare on daily chart so should trade below
  • Bar 3 - Outside up bar fail, failure breakout below low of yesterday, strong bull bar, but middle of yesterday tight trading range. Wait
  • Bar 4 - Bear inside bar, two legged pullback in a bear move 1. Ok swing sell or short for possible high of the day
  • Bar 6 - Bear breakout but tail at 60 minute 20 bar exponential moving average and close not below low of the day so weak
  • Bar 7 - Bull inside bar so fail, failure breakout. Bears might exit above, but might sell or short breakout pullback sell or short below
  • Bar 8 - Doji, one bar final flag, wedge 3 6. Bears might exit above or above 7, and get ready to sell or short again if another breakout pullback sell or short. Not enough buying pressure to go long
  • Bar 9 - Double top 7, two legged pullback in a bear move sell or short
  • Bar 10 - Follow through, more down. Sell or short close is ok but since no strong bear breakout with follow through, bears will have to make quick decisions. They will be quick to exit if no breakout soon
  • Bar 11 - Breakout but need follow through and big break below 60 minute 20 bar exponential moving average, else traders will buy or long back shorts
  • Bar 12 - Bull inside bar, fail, failure breakout. Bears might exit above. Tight channel so don�t buy or long yet. Looks like bear leg in trading range and not in bear trend
  • Bar 14 - Three inside bars in a row so breakout mode. Sell off is weak so better to not sell or short below. But tight channel so not strong buy or long yet
  • [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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