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

Brooks Price Action Analysis of Monday, Dec. 30

pending chart 2490

Two legged pullback in a bear move, fail, failure breakout low of yesterday, double top, double bottom, possible triangle

  • Monday, December 30, 2013
  • Bar 1 - Two legged pullback in a bear move 25, bear reversal bar but middle of tight trading range so bad for scalping with stop. Tight trading range so scalpers should sell or short above 25 or 79. Ok swing but low probability. Most bears will probably be disappointed and will convert to scalp
  • Bar 3 - 3 bear bars, always in short, sellers at the high of the bar and probably scaling in higher
  • Bar 5 - Double bottom low of yesterday, two legged pullback in a bull move, bottom of trading range, bull reversal bar, but tight trading range, bad for scalping with stop entries unless using swing stop so swing or wait. Scalpers should buy or long with limit order orders 18 or 50 low. Still always in short. Small range so should get bigger. Since always in short, more down likely
  • Bar 8 - Two legged pullback in a bear move sell or short, always in short, but bottom of trading range so better to look to buy or long. Scalp market
  • Bar 10 - Possible triangle 5 7. Bears want breakout below low of yesterday and measuring gap, bulls want double bottom 6 or final flag reversal up from bear breakout. Low probability up and or down
  • Bar 13 - Fail, failure breakout low of yesterday, two legged pullback in a bull move 18, final flag, wedge 66 5, two bar revresal, but middle of bear leg in channel so low probability. Bears will sell or short.
  • Bar 16 - Breakout pullback sell or short but bottom of trading range and weak channel so probably buyers at the low of week of the bar and probably scaling in lower. Scalp market, limit order orders, else wait
  • Bar 18 - Higher low, probably will go above 7 high since trading range day. Possible low of the day. Better to buy or long with limit order orders but might be low of the day
  • Bar 23 - Double top 7, two legged pullback in a bear move 16, fail, failure breakout, probably always in long and buyers at the low of week of the bar and probably scaling in lower, but tight trading range 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, both scaling in. Bulls will buy or long around middle of 18 22 bull leg and try for channel, bears want breakout below 18, then new low of the day. Low probability for both and sideways most likely
  • Bar 25 - Big outside down bar, close on low, so possible follow through
  • Bar 27 - Higher low major trend reversal, fail, failure breakout 18, but 4 bear bars so lower probability. Only buy or long if trade small and scale in, or if stopped out, trade full size on second entry buy. Breakout pullback sell or short but bottom half of trading range day so low probability
  • [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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