E-mini S&P range bound trading looking for breakout

Brooks Price Action - 08-28-2012 Tuesday

pending chart 1524

Second reversal from low of yesterday, higher low major trend reversal, trading range day = possible triangle

  • Tuesday, August 28, 2012
  • Bar 1 - Yesterday had weak bear channel into close. Low of yesterday, but body, but tail so probably sellers above, near moving average
  • Bar 3 - 3 bars up so buyers below
  • Bar 4 - Micro double top so don't buy or long below. Bears see as double top bear flag at moving average and or but 4 bars up so sideways more likely. Reports soon so wait.
  • Bar 5 - Big bear bar but report soon. Wait
  • Bar 6 - Follow through but close above 1
  • Bar 7 - More follow through but close above 6. Trading range pa. Always in long and weak signal bar so better to not buy or long yet, even tho 2nd reversal up from low of yesterday, wedge.
  • Bar 9 - Breakout but trading range so far. Most bars have tails, no strong consecutive trend bar up or down . Might be always in long
  • Bar 11 - Big bull bar, close above 1 and 60 minute 20 bar exponential moving average. Probably measuring gap but since trading range, probably will get pullback below 5 high. 70% chance 7 is low of the day or low of next several hours. Bears want channel down like yesterday, but less likely today since yesterday was topof spike and today is resumption up after pullback. Swing bulls have stops below 8, 9, and 11. Wider stops more likely to work. Ok to buy or long close and pullbacks, but pullback might be deep since so much trading range pa
  • Bar 12 - Doji inside bar at top of trading range. Ok swing buy or long but better to wait. Should get pullback soon
  • Bar 13 - Strong bear reversal bar, fail, failure breakout 5, one bar final flag, but always in long ad probably buyers below better to either be long or buy or long pullbacks, even tho pullback might last many bars and be deep, since trading range
  • Bar 14 - Bull outside bar surrounded by inside bars but tight trading range so not high enough probability for scalp. Ok swing with wide stop so trade small or wait
  • [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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