E-mini S&P reverses off higher low

Brooks Price Action - 12-13-2012 Thursday

pending chart 1698

Moving average gap bar and expanding triangle bear flag, tight channel bear, higher low major trend reversal, expanding triangle bear flag

  • Thursday, December 13, 2012
  • Bar 1 - Yesterday was weak bear channel so bull flag. Should get major trend reversal up early. Bull bar but only trendline breakout. Wait
  • Bar 2 - Dt79 bu doji so buyers below. Wait
  • Bar 4 - Fail, failure breakout, double bottom 81, bull bar close on high. Small double bottom major trend reversal, possible low of the day so ok swing buy or long, but if low of the day, probably will get higher probability bottom within about 10 bars
  • Bar 8 - 5 consecutive bull bars so bband probably above. Always in long, bulls want breakout and measured move up, bears want fail, failure breakout.
  • Bar 9 - Breakout but not big bar. Still always in long, buyers below, probably will reach measured move up, ok buy or long. Stop either below 9 or 6 or 4. Since not big bar with close on high, odds favor pullback soon
  • Bar 11 - Bear reversal bar, moving average gap bar, expanding triangle 77 2, but 7 bull bars so lp sell or short. Swing only. Higher probability to wait to buy or long pullback. Might get higher low major trend reversal. Buyers below, but close on low so wait . Moving average gap bar usually leads to final leg of bear before trading range or major trend reversal
  • Bar 12 - One legged pullback in a bull move but bear body and possible top of trading range. Wait. Sellers above
  • Bar 15 - Bear breakout but middle of trading range so low probability
  • Bar 18 - Bull two inside bars but trendline magnet below and microchannel so sellers above and maybe below
  • Bar 20 - breakout, close on low, more dowm
  • Bar 21 - 2nd bear buy or long, more down. Less likely, exhaustion gap
  • [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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