E-mini S&P sees wedge bottom in range day

Brooks Price Action - 12-14-2012 Friday

pending chart 1700

Wedge bottom, double top bear flag, final flag bottom

  • Friday, December 14, 2012
  • Bar 1 - Yesterday ended with expanding triangle bear flag. Reversal bar but bear body. Expanding triangle bottom so lower low major trend reversal, but trading range likely since expanding triangle is a trading range. Might get or down at moving average
  • Bar 4 - Or at moving average but 3 bull bars and bull body so lp so swing only . Better to swing and maybe part scalp or wait
  • Bar 8 - Bear outside bar surrounded by inside bars but bottom of 50 bar trading range so lp sell or short. Swing only. Probably buyers below so higher probability to wait to see if get fail, failure breakout to buy or long
  • Bar 9 - Outside up bar but trading range. Wait
  • Bar 10 - Another bear outside bar surrounded by inside bars at bottom of trading range. Higher probability to wait to see if fail, failure, then buy or long
  • Bar 11 - Bull reversal bar, fail, failure bear outside bar surrounded by inside bars at bottom of trading range, ok buy or long for scalp and maybe swing. Tight trading range so lower probability, but possible low of the day. Bears are still on sell or short below 10 with stop above 10. Breakout mode using 10 high and 11 low, then probably swing up and or down. Ok to be buy or long or sell or short, but usually better to buy low of week sell high and scalp in trading range, and now low. Trendline above = target
  • Bar 15 - Outside up bar, ok swing buy or long above 12, but trading range so should scalp at least part
  • Bar 17 - Bad bar for bulls. Exit below or below 17 or 16. Bears see as two legged pullback in a bear move 9 and swing sell or short for possible high of the day. Some might sell or short below 15, but bottom of trading range so those have to swing since lp
  • Bar 22 - Close on low, ok swing sell or short or below 19 for measured move down, even tho selling bottom of tight trading range
  • Bar 27 - Two bar revresal, lower low major trend reversal from 16 breakout, final flag tri1 9 15, 3rd reversal up from open of week = blue line, but big bars at bottom of trading range and bear channel, wait. Reversal up from test of bottom of bear channel = wedge bull flag so should test top of channel, but not good signal bar. Wait
  • Bar 29 - Second entry buy but bear two inside bars so lower probability. Still should test top of channel but may need more sideways since 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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