E-mini S&Ps post double top back to April

Brooks price action from Tuesday

pending chart 1518

Wedge top, spike and channel bear, double top on daily chart with April high

  • Tuesday, August 21, 2012
  • Bar 1 - Market has had about 10 trading range days so most breakout failed. Gap and bull bar but 2t tail so sellers above
  • Bar 2 - Bear inside bar so fail, failure breakout but 2t tail so buyers below. Aapl at top of monthly channel and in buy climax so it could be the excuse that the market needs for a pullback on daily. Since labor day rally is common, market often sells of in week before aug 30, so might get sell off any day
  • Bar 3 - One legged pullback in a bull move but doji. More sideways
  • Bar 4 - 2nd entry sell or short for fail, failure breakout high of yesterday but bull body. Wait
  • Bar 5 - Fail, failure two legged pullback in a bear move. Two legged pullback in a bull move, but tight trading range. Better to wait for breakout. Breakout to new high of year on cash, but sill might be double top on daily
  • Bar 6 - Big breakout, close on high, more up. Ok to buy or long or to wait for follow through
  • Bar 7 - Big bull bar, no tails, more up. Traders will buy or long close and scale in lower
  • Bar 9 - Two inside bars, fail, failure breakout, final flag 5, wedge 61 1, but strong breakout, always in long, so more up. Buyers below. Low probability swing sell or short but better to see if becomes breakout pullback buy or long
  • Bar 13 - 3 bull bars, more up. Still always in long
  • Bar 15 - Bear reversal bar, wedge 1 7. Ok swing sell or short but since only 1t body, 4 bars up, and tight channel, probably will get higher probability 2nd entry within about 10 bars
  • Bar 21 - 6 bar bear microchannel but not strong bull and on wedge top. Probably sellers above for 2nd chance for bears for swing sell or short
  • [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.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome