E-mini S&P breaks out amid range day

Brooks Price Action - 09-27-2012 Thursday

pending chart 1552

Trending trading range day, strong breakout, wedge top.

  • Thursday, September 27, 2012
  • Bar 1 - Yesterday = trading range after strong bear, and ended with higher low major trend reversal. Gap up but bear body and tail so trading range bar. Wait. Probably buyers below scaling in around moving average
  • Bar 8 - Or, but inside bar, three legged pullback in a bull move so microwedge 2 6, but tail so sideways more likely
  • Bar 13 - Breakout pullback buy or long, close on high but top of trading range. Better to wait. Tight trading range so bad for stop entries
  • Bar 17 - Bear inside bar, wedge 7 10, two legged pullback in a bear move, but tight trading range and in bull channel. Better to wait
  • Bar 18 - Outside up bar bu, fail, failure two legged pullback in a bear move but top of tight trading range and in weak bull channel. Close at breakout point so some strength and always in long, but not strong. Better to wait. Range only 4.75 so probably will get bigger, up and or down
  • Bar 19 - Bull inside bar, bull channel. Probably buyers below with stop below 18 but near top of trading range day and better to wait
  • Bar 24 - Strong bull reversal bar but middle of tight trading range. Two legged pullback in a bull move. Might form possible triangle
  • Bar 29 - 4 consecutive bull bars, building buying pressure so might get bull breakout
  • Bar 30 - Big bull bar, close on high, always in long, more up, so strong breakout. Ok to buy or long as bar is forming or on close. Swing with stop below
  • Bar 31 - Follow through so more up
  • Bar 33 - Bear reversal bar but small and 1st pullback in 10 bar microchannel so buyers below. Swing stop below 30, but most traders will risk less, like maybe 2 -3t below 31
  • [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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