Breaking down Monday's price action in the E-mini: Brooks

Brooks Price Action Analysis of Monday, July 30

pending chart 2249

Lower high major trend reversal, fail, failure wedge bull flag, parabolic wedge, higher low major trend reversal

  • Monday, July 29, 2013
  • Bar 1 - Yesterday ended with channel so probably trading range. Middle of 60- 81 channel, small bull bar, tails so buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher. Around all time high and may high and almost to end of month so might be trading range day for several days
  • Bar 4 - Lower high major trend reversal, or sell or short, but bull body so low probability
  • Bar 6 - Breakout pullback buy or long but doji, top of trading range. Wait
  • Bar 10 - Two legged pullback in a bull move 1, or, but small body compared to 3 bear bars so low probability. Better to wait
  • Bar 14 - Wedge bull flag, 1 10 but only 1t body so low probability. Possible low of the day so ok swing buy or long, but higher probability to wait for breakout up and or down
  • Bar 19 - Small l217, fail, failure at moving average again. Ok swing sell or short, but higher probability to wait for breakout below 14 wedge. Bulls are still always in long as long as it holds above 14 low
  • Bar 21 - Bear follow through from bear breakout below wedge bull flag. More down, probably 2 legs and measured move
  • Bar 23 - Fail, failure breakout but 1t body and more down. Better to take partial profits on shorts and sell or short more higher. Bulls will start to scale in below, looking for scalps and a tight trading range
  • Bar 25 - Double top 23 but tight trading range. Probably buyers at the low of week of the bar and probably scaling in lower. Wait to sell or short higher, near moving average. Bull scalpers will buyers at the low of week of the bar and probably scaling in lower and scale in.
  • Bar 27 - Parabolic wedge 1 14, bull outside bar surrounded by inside bars, microwedge 22 24, but tight trading range no scalping with stops, and 2nd leg down likely. Probably sellers at the high of the bar and probably scaling in higher, but might test moving average again
  • Bar 28 - Bull entry bar, possible parabolic wedge 1 14 and low of the day and always in long.
  • [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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