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

Brooks Price Action Analysis of Thursday, Dec. 12

pending chart 2443

Opening reversal, nested wedge bottom, double top, expanding triangle bottom, lower high major trend reversal

  • Thursday, December 12, 2013
  • Bar 1 - Yesterday ended with a sell climax so 2/3 chance of rally today. Second entry buy fail, failure breakout below channel but doji and tight trading range so low probability buy or long
  • Bar 3 - Opening reversal, two legged pullback in a bear move at moving average but bull body so low probability and swing or wait
  • Bar 6 - Wedge bottom but tail, strong 4. Low probability buy or long and probably sellers at the high of the bar and probably scaling in higher. Always in short, wait
  • Bar 8 - Breakout pullback sell or short but bottom of channel and possible trading range so low probability sell or short. Ok swing. Higher probability to wait to see if form bottom soon
  • Bar 11 - Nested wedge 1 5, wedge 76 5, wedge 37 76, ok swing buy or long for low of the day. Should test top of channel and possible high of the day. Bears want 3rd push down from 4
  • Bar 12 - Ok entry bar, probably always in long for approx. Ten bar, two-legged correction sideways to up to top of channel
  • Bar 17 - Double top 7, but low probability. More likely buyers at the low of week of the bar and probably scaling in lower for two legs up to trendline above. Tight trading range so bulls might buy or long scalp below
  • Bar 19 - Breakout pullback buy or long for test of trendline
  • Bar 21 - Double top 3, fail, failure breakout, trendline, moving average gap bar, but still always in long and buyers at the low of week of the bar and probably scaling in lower, but since trading range likely, bulls need wide stop below 18 or 10 and scale in, better to wait. Trading range likely but bears better to wait for second entry sell, but ok swing.
  • Bar 23 - 3 consecutive bear bars so probably will test 18 low, but trading range day likely so probably buyers at the low of week of the bar and probably scaling in lower 18 for scalp
  • Bar 25 - Higher low major trend reversal but doji so probably sellers at the high of the bar and probably scaling in higher
  • [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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