Wednesday E-mini price action bounces sideways: Brooks

Brooks Price Action Analysis for Wednesday, Feb. 12

pending chart 2625

Higher high major trend reversal, lower high major trend reversal, wedge bottom, lower high major trend reversal, trading range day

  • Wednesday, February 12, 2014
  • Bar 1 - Bull bar but at high of yesterday and tail so probably sellers at the high of the bar and probably scaling in higher. Always in long. Better to wait to sell or short since strong bull yesterday
  • Bar 2 - Gap, more up, stop below 1
  • Bar 4 - Higher high major trend reversal but 3 bull bars, bear doji, probably buyers at the low of the bar and probably scaling in lower and better to wait for second entry sell or strong bear breakout
  • Bar 7 - Higher high major trend reversal at top of channel, fail, failure breakout high of yesterday second entry sell, ok swing. Tight channel so not high enough probability unless swing stop and scale in for scalp. Possible high of the day
  • Bar 10 - Strong bear bar, always in short, should fall below low of the day, sellers at the high of the bar and probably scaling in higher
  • Bar 12 - Breakout pullback sell or short, but need swing stop since might get micro double bottom at low of the day
  • Bar 13 - Wedge 1 11, micro double bottom, strong bull bar, but tight trading range, bad for scalping with stop entries unless using swing stop and still always in short so sellers at the high of the bar and probably scaling in higher and weak swing buy or long. Might get lower high major trend reversal soon
  • Bar 16 - Fail, failure breakout low of the day, microwedge 11 13, 15 moving average, strong reversal bar so probably bounce, not high enough probability unless swing stop and scale in for scalp. Trendline 2t below so probably magnet and probably will be hit soon. Possible low of the day, but more likely will form lower high, maybe around high of yesterday
  • Bar 17 - Breakout pullback sell or short but bull body, microwedge, probably buyers at the low of the bar and probably scaling in lower for scalp or swing
  • Bar 22 - Lower high major trend reversal, two legged pullback in a bear move 17, double top 14, trendline below, but good buying pressure so low probability. Ok swing sell or short but sideways more likely
  • Bar 25 - Wedge 1 16, fail, failure breakout low of trading range, test close of yesterday, 15 moving average, but strong 23 so better to wait for second entry buy. Still always in short, stop above 21. Breakout pullback sell or short, should fall below 81 higher low, but swing only since bottom of trading range since 55. Measured move targets below, more down
  • [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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