E-mini S&P gives up gains in trend reversal

Brooks Price Action - 11-13-2012 Tuesday

pending chart 1615

Trend from the first bar bull, then lower high major trend reversal

  • Tuesday, November 13, 2012
  • Bar 1 - Yesterday tried for higher low major trend reversal. Gap down, but market transitioning into trading range and now have big gap down and strong bull bar. Ok swing buy or long. Ok to wait for 1 & 2 bars
  • Bar 2 - Good follow through. Always in long. Ok to buy or long market. Buyers below. 40-50% chance low of the day
  • Bar 3 - More up. Must get long, even if buy or long small or weekly calls
  • Bar 5 - Bear inside bar but trend from the first bar bull and strong bull spike. Buyers below. If use wide stop, trade small
  • Bar 7 - Bear outside bar surrounded by inside bars but strong bull spike so don�t sell or short. Probably buyers below.
  • Bar 8 - Fail, failure two legged pullback in a bear move, strong bull reversal bar, ok swing buy or long and maybe scalp. Should hit 60 minute 20 bar exponential moving average
  • Bar 10 - Big bear reversal bar after big bull bar buy vacuum buy climax, wedge 4 6, but tight channel and always in long. Probably ok scalp but stop above so big risk. Odds favor trading range after strong spike on open, but better to not sell or short until clearly trading range. Look to buy or long pullback
  • Bar 13 - Bull body but doji. Probably sellers above but stop above 10 so too much risk. Big dojis so better to wait. Bad for stops
  • Bar 14 - Second entry sell but big dojis so bad for stops. Better to wait. Too many size adjustments for beginners�position, stop, target
  • Bar 16 - Big bull inside bar, 60 minute 20 bar exponential moving average magnet above, but top of tight trading range so ok to wait. Ok swing buy or long since trapped bears
  • Bar 17 - Big bull bar, breakout above 60 minute 20 bar exponential moving average, more up but better to scalp only since consecutive buy climax
  • [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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