Sideways price action dominates E-mini: Brooks

Brooks Price Action Analysis of Thursday, Oct. 10

pending chart 2361

Lower low major trend reversal, double top, consecutive sell climax, higher low major trend reversal

  • Wednesday, October 9, 2013
  • Bar 1 - Yesterday ended with gap bar sell or short, which usually leads to final leg of trend before major trend reversal. Breakout pullback sell or short, close on low, ok swing stop, but scale in, then scalp or swing sell or short, but might reverse up for reversal day after yesterday breakout below bottom of trendline on daily. Market had fail, failure breakout of top of channel on daily so might get fail, failure breakout at bottom
  • Bar 2 - Bad follow through. Tail, low probability buy or long. Still on sell or short, stop above 1
  • Bar 5 - Lower low major trend reversal, wedge bottom, ok bull bar, ok swing buy or long for possible low of the day. 3 big bear bodies so lower probability and swing only
  • Bar 6 - Good entry bar but need follow through above moving average. Probably weak bull channel since yesterday = trading range pa
  • Bar 7 - Bad follow through. Bulls have stops below 5 or 6. Bears still on swing sell or short below 1. Breakout mode
  • Bar 9 - Double bottom lower low major trend reversal but doji so weak signal bar and not strong bottom so trading range more likely than bull. Breakout mode. Probably always in long. 30% chance 5 is low of the day, 20% 1 is high of the day
  • Bar 11 - Bull breakout above moving average but need follow through. Probably always in long
  • Bar 12 - Double top 1, two legged pullback in a bear move 6 at moving average, but probably always in long so low probability sell or short. Bears want channel down, stop above 1. Bulls need to hold above moving average. Failing at moving average again, like yesterday
  • Bar 15 - Bad follow through for bulls. Still on swing buy or long and sell or short. Bulls will exit below 11 but probably buyers at the low of week of the bar and probably scaling in lower 9 = bottom of trading range
  • Bar 18 - Fail, failure breakout but bear body. Sellers at the high of the bar and probably scaling in higher
  • Bar 19 - Breakout pullback sell or short but bull body. Bull scalpers 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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome