E-mini S&P reverses off lower low

Brooks Price Action - 02-26-2013 Tuesday

pending chart 1908

Wedge bottom and lower low major trend reversal

  • Tuesday, February 26, 2013
  • Bar 1 - Yesterday ended with parabolic wedge. Gap above, as expected, so failed bear breakout of bear channel and should test top of channel. Doji so buyers below, sellers above. At moving average and middle of final leg of yesterday so might stay inside that final leg and be trading range day.
  • Bar 3 - Bear reversal bar at moving average but doji so lp sell or short
  • Bar 5 - Two bar revresal so more trading range pa. Not strong buy or long
  • Bar 7 - 3 bars up so always in long but need follow through from breakout. Wait. Moving average gap bar but bull bar and 3 bars up so lp sell or short.
  • Bar 8 - Big outside down bar. Trading range pa
  • Bar 9 - Bear follow through but need one more bear bar since might be trading range day. Every breakout up and or down has failed. Probably always in short
  • Bar 10 - Bull inside bar, expanding triangle 1 4 higher low major trend reversal, but 2 big bear bars so probably always in short. Wait or swing sell or short
  • Bar 14 - Bull inside bar, higher low major trend reversal. Bulls trying for inside day and are buying here with stop below low of yesterday. Low probability but high reward. Better to wait for second entry buy since tight channel
  • Bar 15 - One legged pullback in a bear move but just above low of yesterday. Probably buyers below or buy below
  • Bar 16 - Big outside up bar but probably trading range so better to not buy or long high. Wait
  • Bar 18 - Two bar revresal at moving average, double top 10, swing sell or short only since lp after 3 big bull bars
  • [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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