Brooks: E-mini abandons early trend for sideways action

Brooks Price Action Analysis of Monday, Oct. 7

pending chart 2355

Trend from the first bar bull, lower high major trend reversal, wedge bull flag, 55 higher high major trend reversal, double top bear flag lower high major trend reversal

  • Monday, October 7, 2013
  • Bar 1 - Fail, failure gap down, ok swing buy or long, but not big bar and at bottom of trading range so might go sideways first. Getting close to bottom of channel on daily and will probably test below within 1-3 days
  • Bar 2 - Bear reversal bar but tail. Still always in long, buyers at the low of week of the bar and probably scaling in lower for possible low of the day
  • Bar 3 - Outside up bar, more up
  • Bar 4 - Follow through, but small bull bars so probably bull leg in trading range. Better to buy or long le
  • Bar 5 - Two legged pullback in a bear move 2 but tail so low probability. Since probably trading range, better to not buy or long 5 low and instead buy or long lower
  • Bar 7 - Breakout pullback buy or long, ok swing buy or long
  • Bar 8 - Breakout, probably measuring gap, more up
  • Bar 9 - Follow through, more up
  • Bar 10 - Fail, failure breakout, wedge 1 wedge, but probably 2lg after big breakout so buyers at the low of week of the bar and probably scaling in lower ba
  • Bar 11 - Breakout but tail, at moving average, 60 minute 20 bar exponential moving average just above. Sideways likely
  • Bar 12 - Breakout pullback buy or long but doji, moving average, just below measured move target and 60 minute 20 bar exponential moving average. Better to take profits on longs than to buy or long since probably sellers at the high of the bar and probably scaling in higher and trading range likely
  • [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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