E-mini S&P rises after gap down

Brooks Price Action - 03-27-2013 Wednesday

pending chart 1973

Fail, failure gap down, higher low major trend reversal

  • Wednesday, March 27, 2013
  • Bar 1 - Gap down but trading range for weeks so probably fail, failure breakout and buyers below or buy below. Should get above low of yesterday since 3 wk trading range and breakout fail, failure
  • Bar 2 - Strong bull reversal bar, ok swing buy or long, but sideways likely because trading range for 3 weeks
  • Bar 3 - Bull body so always in long, buyers below or buy below, but only 1t body so sideways likely
  • Bar 4 - Buyers below or buy below
  • Bar 6 - Two legged pullback in a bear move but higher closes so bull trend, altho subtle and weak so far, always in long, buyers below or buy below
  • Bar 8 - L4, bear bar, but tail, tight trading range so lp. Swing sell or short only, better to wait for higher probability
  • Bar 10 - Higher low major trend reversal, still always in long form 2. 50% chance 2 is low of the day or 6 is high of the day. 2 is more likely
  • Bar 11 - Bull breakout, two bar revresal 9, higher low major trend reversal, always in long
  • Bar 12 - Breakout, still always in long, but big tail at moving average and 60 minute 20 bar exponential moving average so weak breakout. Bulls want measured move up
  • Bar 17 - Final flag 14, 15 minute 20 bar moving average plotted on a 5 minute chart, fail, failure breakout, but doji, 5 bull bars, always in long. Don�t sell or short. Buy or long pullback. 70% chance 11 will remain low of the day
  • Bar 18 - One legged pullback in a bull move but 2 bear bodies. Ok buy or long if swing stop below 11 or 13. Always in long so buyers below or buy below
  • [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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