Breaking down Friday's trend in the E-mini market: Brooks

Brooks Price Action Analysis of Friday, Dec. 27

pending chart 2487

Higher high major trend reversal, higher low major trend reversal,

  • Friday, December 27, 2013
  • Bar 1 - I leave early today. Higher high major trend reversal, final flag, gap above 5 day tight channel. Bear bar, possible high of the day. Ok swing sell or short, but higher probability to wait
  • Bar 4 - Tight trading range, bad for scalping with stop entries unless using swing stop. 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
  • Bar 9 - Lower high major trend reversal but tight trading range so low probability. Breakout mode
  • Bar 12 - Close on low, better sell or short for possible high of the day, but small bars so not strong. 60 minimum or minutes microchannel so downside probably limited. Ok swing
  • Bar 14 - Bear breakout and follow through. Always in short. Bulls want two legged pullback in a bull move and 15 minimum or minutes orev, but probably sellers at the high of the bar and probably scaling in higher and more down
  • Bar 17 - Two legged pullback in a bull move 4 but tail and strong breakout so low probability and probably sellers at the high of the bar and probably scaling in higher. Breakout pullback sell or short but possible one bar final flag and then trading range so probably buyers at the low of week of the bar and probably scaling in lower and then pullback. 60 minimum or minutes bear breakout below microchannel so probably buyers around here and then move above top of channel = high of the day, and then bigger pullback to 60 minute 20 bar exponential moving average over next few days, maybe after jan 1.
  • Bar 22 - Double top 17, moving average, breakout pullback sell or short, fail, failure breakout, but 4 bull bars so more sideways,
  • Bar 23 - Bear breakout but middle of bull leg to 22 so probably buyers below 20 bull entry bar. Bulls want small higher low major trend reversal and bull channel, but more likely sideways and then trend resumption or trend reversal.
  • Bar 24 - Higher low major trend reversal, possible low of the day, but trading range more likely and probably sellers at the high of the bar and probably scaling in higher
  • Bar 25 - Breakout test or bought upper trading range, but doji and strong buying pressure so better to wait
  • Bar 28 - Bull inside bar but two-sided trading so probably top of trading range. Better to not buy or long high. Wait to buy or long pullback to 24 low area for a double bottom, or for strong bull breakout
  • [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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