Understanding yesterday's E-mini price action: Brooks

Brooks Price Action Analysis of Thursday, Aug. 8

pending chart 2268

Trend from the first bar bear, consecutive sell climax, consecutive buy climax, higher high major trend reversal

  • Thursday, August 8, 2013
  • Bar 1 - Gap up but doji so sellers at the high of the bar and probably scaling in higher buyers at the low of week of the bar and probably scaling in lower
  • Bar 2 - Close on low. Since sellers at the high of the bar and probably scaling in higher 1, signal bar 2 for possible high of the day. Swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk or wait
  • Bar 6 - Or 60 minute 20 bar exponential moving average, but 2t tail, overlap 4 5 so tight trading range more likely. Low probability. Better to wait for bull breakout
  • Bar 7 - Outside down bar, breakout pullback sell or short, just above 60 minute 20 bar exponential moving average so low probability swing only
  • Bar 8 - Big breakout, more down
  • Bar 9 - More breakout, probably will get 2nd leg down. At 15maand close of yesterday so possible sideways first
  • Bar 10 - Parabolic wedge 1 6, but bear body and strong breakout. Probably sellers at the high of the bar and probably scaling in higher
  • Bar 13 - Another big sell climax so probably low of the day soon
  • Bar 15 - Breakout pullback sell or short but probably buyers at the low of week of the bar and probably scaling in lower after big consecutive sell climax
  • Bar 16 - Consecutive sell climax, 2nd leg down, outside up bar, possswing low. Exit sell or short, ok swing, low probability so use swing stop, but can convert to scalp if quickly goes reward 2 times risk for approx. Ten bar, two-legged correction sideways to up. Bulls want test 13 high = top of bear breakout
  • Bar 17 - Close on high, probably always in long for approx. Ten bar, two-legged correction sideways to up. Breakout pullback sell or short but probably buyers at the low of week of the bar and probably scaling in lower and trading range. Low probability sell or short
  • [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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