Double top amid price action in E-mini S&P 500: Brooks

Price action and setup analysis

pending chart 2288

Higher low major trend reversal, possible triangle bottom, double top at moving average, consecutive sell climax

  • Wednesday, August 21, 2013
  • Bar 1 - I have to leave early today. Gap down to just above low of yesterday, big tail 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. Might be two inside bars on daily
  • Bar 2 - Higher low major trend reversal, outside up bar. Buyers at the low of week of the bar and probably scaling in lower 1 so ba 1. More up, always in long
  • Bar 3 - Bull follow through, always in long, more up. Trading range pa
  • Bar 4 - Small bar, ok to go flat, but still always in long. Two legged pullback in a bear move 1 but 3 bull bars so buyers at the low of week of the bar and probably scaling in lower. Wait for report
  • Bar 5 - Higher low, always in long, ok swing buy or long with stop below 2, but doji, trading range so far, so might test down more
  • Bar 8 - Double top, ok swing buy or long, but probably more trading range since 7 did not get close enough to moving average
  • Bar 10 - Two legged pullback in a bull move 6 but middle of trading range day. Better to wait. Breakout mode
  • Bar 12 - Double top second entry sell, breakout pullback, possible triangle 4 7, so ok swing sell or short but did not reach moving average so low probability and probably better to wait
  • Bar 14 - Possible triangle bottom, fail, failure second entry sell, ok swing buy or long. Best probability of the day for swing
  • Bar 16 - Double top at moving average 7, bear inside bar at moving average, but low probability sell or short so swing only. Bad follow through for bulls, but stop below 15
  • Bar 18 - 2 bear bars close on low, probably more down. Ok swing sell or short 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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