E-mini S&P makes major trend reversal after double top

Brooks Price Action - 12-19-2012 Wednesday

pending chart 1712

Double top lower high major trend reversal

  • Wednesday, December 19, 2012
  • Bar 1 - Yesterday ended with trading range after 2 huge buy climax. At top of trading range so buy low of week sell high and scalp. Should test 62 low today. Bear bar, close on low, higher high major trend reversal, ok scalp and swing sell or short. Big bar, 5 bar tight trading range so ok so wait instead of scalp.
  • Bar 2 - Bull reversal bar but always in short and probably sellers above and signal bar. Bears might exit above. Better to not buy or long top of trading range after strong buy climax and only look to sell or short
  • Bar 5 - Bear breakout, more down
  • Bar 6 - Follow through, more down
  • Bar 8 - Two bar revresal but 7 bar bear microchannel in trading range so sellers above
  • Bar 12 - Two bar revresal, double bottom 62, final flag 9, should bounce at bottom of trading range. Only look to buy or long since buy low of week sell high and scalp, 2t tail so weaker, but probably ok scalp
  • Bar 14 - 3 strong bars up so always in long but trading range day
  • Bar 22 - 2 bear bars, fail, failure breakout, most breakout fail, failure on trading range day, up for about 10 bars so better to only look to sell or short, but tails and tight channel so lower probability. Better to wait, unless can sell or short with limit order orders or wide stop
  • Bar 26 - Second entry sell near top of 10 bar bull leg so ok sell or short scalp
  • Bar 32 - Fail, failure breakout 23, ok buy or long scalp. Trading range day so buy low of week sell high and scalp. Tight trading range so best to enter with limit order orders and fade bos. Not good pa for beginners, who should stick to stop orders
  • Bar 39 - Strong bull bar after about 10 bars up so better to sell or short, expecting fail, failure breakout in tight trading range.
  • [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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