E-mini S&P reverses out of bear channel

Brooks Price Action - 01-18-2013 Friday

pending chart 1795

Spike and channel bear, lower low major trend reversal, bull trend resumption

  • Friday, January 18, 2013
  • Bar 1 - Yesterday ended with bear breakout below wedge bull flag so should have second leg down. Micro double bottom but tight trading range and better trader's equation to wait. Two legged pullback in a bear move sell or short but tight trading range so lp sell or short
  • Bar 3 - Fail, failure fo, sell climax and possible exhaustion gap 2, possible low of the day, but 2 tail better to wait
  • Bar 5 - One legged pullback in a bear move but maybe only one more leg down. Looks like bear leg in trading range, not bear. Should try to bottom soon
  • Bar 6 - Big reversal bar but tight trading range so lp and swing only. Better to wait
  • Bar 7 - Two legged pullback in a bear move sell or short, bear bar, but odds favor bottom soon. Probably better to wait to see if get fail, failure two legged pullback in a bear move to buy or long
  • Bar 8 - Fail, failure two legged pullback in a bear move so possible triangle, bull bar, possible low of the day, ok swing buy or long. Tight trading range so not high enough probability for scalp
  • Bar 10 - Double top 5 but bull body. Bulls might get out below or below 8. Lp sell or short so swing only. Bull channel probably more likely, but tight trading range so 50-50 market until breakout up and or down. Bad for stop entries for scalps. Scalps = limit order orders, stops =swings
  • Bar 16 - Small bull bar at bottom of tight trading range, db6, but 5 bars down and close to 60 minute 20 bar exponential moving average magnet. Better to wait
  • Bar 18 - Outside bar surrounded by inside bars but doji. Probably will test 60 minute 20 bar exponential moving average not not strong leg so hard to manage shorts. Should try to bottom around support = 60 minute 20 bar exponential moving average, low of yesterday, measured move, top of gap on daily
  • Bar 22 - Big outside up bar at support. Possible low of the day. Might get major trend reversal in about 10-20 bars. Not yet always in long, but probably will be soon. Big call buy or long
  • Bar 24 - Double top 17 at moving average, bear reversal bar. Swing sell or short since trading range more likely after 2 bars up
  • [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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