E-mini S&P falls within broad channel bear

Brooks Price Action - 10-24-2012 Wednesday

pending chart 1585

Broad channel bear, outside down bar day.

  • Wednesday, October 24, 2012
  • Bar 1 - Yesterday ended with expanding triangle bull flag. Strong bull bar but top of expanding triangle so top of trading range. Wait. Weak signal bar for fail, failure breakout and high of the day. Fomc report 11:15 so might enter tight trading range after 8:30 or so
  • Bar 2 - Outside down bar, big bar, room to moving average, more down. Two bar revresal but big tail so higher risk and ok to wait
  • Bar 5 - 4 bars down so sellers above
  • Bar 7 - Outside down bar on report but trading range pa so far and within trading range of yesterday
  • Bar 9 - Bull inside bar, two legged pullback in a bull move, bottom half of yesterday trading range, but 3t tail. Better to wait. So far, trading range day so better to buy low of week sell high and scalp. When in doubt, wait for second signal buy
  • Bar 12 - Fail, failure two legged pullback in a bull move, breakout pullback sell or short, but bottom of weak bear leg in trading range so buyers below
  • Bar 13 - Outside up bar but 6 bar tight trading range. Probably buyers on pullback
  • Bar 14 - Outside bar surrounded by inside bars but bear bar at top of tight trading range so probably sellers above
  • Bar 16 - Fail, failure breakout, wedge 10 12 but doji. Better to wait
  • Bar 18 - Breakout pullback buy or long but top of trading range and most breakout fail, failure. Better to wait to see if get breakout. Tight trading range is bad pa for stop entries, especially buying at top or selling at bottom and hoping for breakout
  • Bar 19 - Possible triangle 7 15, second entry sell at top of trading range day. Bull body so lp sell or short signal bar and might be better to wait, but trading range day so often get bad signal bar
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.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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