E-mini S&P reverses with double bottom

Brooks Price Action - 09-24-2012 Monday

pending chart 1548

Gap down, double bottom higher low major trend reversal.

  • Monday, September 24, 2012
  • Bar 1 - Yesterday was weak bear. Gap down but bull reversal bar so ok swing buy or long. Just above bottom of 2 week trading range
  • Bar 2 - Good follow through, always in long
  • Bar 3 - Fail, failure breakout but doji so buyers below
  • Bar 5 - Two bar reversal, still always in long, but 2 bar pullback and all bars not big so probably trading range
  • Bar 8 - Two legged pullback in a bear move, two bar reversal, close on low, ok swing sell or short for possible high of the day. Bears want gap down on daily chart and start of bear for several weeks. Bulls want to close gap and rally to top of trading range
  • Bar 10 - 2 weak bear bars so more sideways to up. 3 bars with tails so bears will exit above or above 9. Two legged pullback in a bull move 5 but weak signal bar for bulls. Still always in long
  • Bar 11 - Bull bar but doji. Higher low major trend reversal but weak signal bar so swing only
  • Bar 13 - Breakout but tail
  • Bar 15 - Bull two inside bars at moving average and test of gap down, but always in long, more bull bodies than bear bodies so probably more up. Bm up and or down. Bull channel and trading range, but just below support and/or resistance = low of yesterday so ok to wait to buy or long. Too many bull bars so lp sell or short and swing only.
  • Bar 18 - Breakout so more up, but bar not big and has big tail so need follow through. 7 bars up so good buying pressure. Stays always in long as long as pullback stays above 10 low bottom of bull spike
  • Bar 19 - Bear reversal bar, 17t fail, failure 11, fail, failure breakout trend channel line, and fail, failure breakout 18. Large two legged pullback in a bear move 8. Bulls might get out below. Always in long so swing stop below 12 or 10, which is too far so better to get out and buy or long lower. Expanding triangle 3 7 but too many bars since 7 so probably not convincing. Fail, failure breakout but 10 bar bull microchannel and always in long and breakout so better to not sell or short. Probably bull channel so buyers around trendline below, maybe as a parallel from trend channel line 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.

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