E-mini S&P makes double bottom amid trading range

Brooks Price Action - 09-18-2012 Tuesday

pending chart 1543

Lower low major trend reversal, weak bull channel, double bottom major trend reversal, small trading range day

  • Tuesday, September 18, 2012
  • Bar 1 - Yesterday = weak bear channel with wedge bottom and bull breakout. Strong bear bar, close on low, swing sell or short below for possible high of the day, but better to wait since might get expanding triangle bottom
  • Bar 2 - Fail, failure breakout low of yesterday, expanding triangle 63 73 so lower low major trend reversal, but 2 bear bars so probably sellers above. Wait
  • Bar 3 - Breakout pullback sell or short but sideways likely since yesterday = 2 sided and on swing sell or short 1 and swing buy or long 2. Better to wait for second signal up and or down
  • Bar 5 - Breakout but just below moving average. Wait
  • Bar 7 - Fail, failure new high of the day at moving average, double top 1, close on low, 1 closed on low, microwedge 3 5. Possible high of the day so ok swing sell or short
  • Bar 8 - Two bar revresal. Most bears will exit above, but low probability for buy or long, especially since tail. Bulls probably should wait for breakout. Breakout mode since small range and reversal up 2, down 7. Trading range so far
  • Bar 10 - Micro double bottom, no follow through. Bears will exit above. Bear body so not reliable buy or long. Wait
  • Bar 14 - Wedge 1 7, bear bar, close on low, lower high 79 so still in big bear channel, ok swing sell or short. 1t bear body and in bull channel since 14 so ok to wait since might be buyers below. Better to not buy or long below since top of trading range day
  • Bar 17 - Breakout pullback buy or long, weak bull channel, ok swing buy or long with stop below16 or 10, but lots of tails, overlap, and pullback so very two-sided trading and better for most traders to wait. Tying to get above 79 and then test yesterday 40 top of tight trading range. No sign of top so might get there
  • Bar 18 - Breakout, more up
  • Bar 19 - Weak follow through, l4 or wedge, but probably buyers below since tight channel and magnets above
  • [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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