E-mini S&P trends higher after gap up

Brooks Price Action - 03-05-2013 Tuesday

pending chart 1921

Gap up, trend from the first bar bull, final flag, higher high major trend reversal

  • Tuesday, March 5, 2013
  • Bar 1 - Yesterday ended with strong bull consecutive buy climax, always in long. Big gap up to high of yesterday so probably will not go far before sideways to down. Ok swing buy or long
  • Bar 2 - Big bull bar, but consecutive buy climax so probably not much more up before approx. Ten bar, two-legged correction sideways to down. Maybe trading range for hours
  • Bar 3 - Fail, failure breakout but 3t tail. Buyers below or buy below
  • Bar 4 - Bull inside bar, but one legged pullback in a bull move after consecutive buy climax so not high enough probability for scalp. Probably will get pullback soon so ok to wait for swing buy or long
  • Bar 7 - Bull bar but big tail. Trend from the first bar bull but consecutive buy climax so better to not buy or long below. Bears should wait for strong signal bar, bulls should probably wait for approx. Ten bar, two-legged correction sideways to down to buy or long, altho always in long and can buy or long at any time if wide stop
  • Bar 8 - Bear inside bar but doji and trend from the first bar bull so buyers below or buy below
  • Bar 9 - Breakout pullback buy or long but doji and weak channel so swing only or wait
  • Bar 11 - Bear reversal bar but tight channel and only 1t body. Better to wait. Bears need major trend reversal before swinging
  • Bar 13 - Another 2 bull bar breakout and buy climax but no sign of top, always in long
  • Bar 17 - Two bar revresal, 1t below measured move yesterday range, but tight channel. Odds favor trading range for hours, probably tight trading range, then trend resumption or trend reversal late in day, or more sideways into close
  • Bar 19 - 3 bars down, probably early tight trading range, bears will scale in above, since tight trading range likely. Measured move target 1t above high of the day so sellers above or sell above
  • [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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome