E-mini S&P may see longer-term reversal

Brooks Price Action - 09-20-2012 Thursday

pending chart 1546

Gap down, 1 bar final flag, sell vacuum down to measured move, trending trading range day, countertrend bull day

  • Thursday, September 20, 2012
  • Bar 1 - Yesterday = bear close. Gap down from top of channel on daily so might fall for 2 - 3 weeks, but bears need strong bear day. Good location for put spreads on daily since reward might be 4x risk, even if probability only 40%. Fail, failure breakout, but bull reversal bar. Doji so better to wait. Bears want to keep gap open on daily chart so might be big bear trend day. Big gap so probably mostly sideways for hour or 2
  • Bar 3 - Two bar revresal, breakout pullback sell or short. Ok swing sell or short
  • Bar 4 - Big bear bar, close on low, sell or short close. Swing sell or short with stop above spike
  • Bar 5 - Close near low but since at measured move down from yesterday range, might be sell vacuum. Better to not sell or short close at support and/or resistance
  • Bar 6 - Bull inside bar, two legged pullback in a bull move, measured move, might be low of the day. Ok to swing buy or long or exit short, but still always in long
  • Bar 7 - Big bull bar, small tail, probably always in long. Bears want double top near high of the day and to keep gap open, bulls want opposite
  • Bar 9 - Big bull bar so big down, big up and trading range likely
  • Bar 10 - Bear inside bar, fail, failure breakout, double top but 4 bars up so trading range more likely. Better to not sell or short. Always in long so might get bull breakout. Since probably trading range and now near top, better to not buy or long low of bar
  • Bar 12 - Outside up bar breakout pullback buy or long. Ok swing
  • Bar 13 - Breakout, close on high, always in long, more up. Ok swing buy or long
  • Bar 14 - Big bull bar, test of low of yesterday and attempt to close gap. At support and/or resistance so better to not buy or long close
  • [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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