Tuesday price action whips sideways in E-mini: Brooks

Brooks Price Action Analysis for Tuesday, Feb. 18

pending chart 2635

Higher high major trend reversal, opening reversal, tight trading range

  • Tuesday, February 18, 2014
  • Bar 1 - Lower high major trend reversal but doji, just above moving average, probably buy below or buyers at the low of the bar and probably scaling in lower. Possible trading range since yesterday ended with trading range and now doji at top
  • Bar 2 - Outside up bar, but at high of yesterday so low probability. Still always in long from yesterday
  • Bar 3 - Outside bar surrounded by inside bars but big bars, dojis so tight trading range, bad for scalping with stop entries unless using swing stop. Swing only but low probability so better to wait to see strong breakout
  • Bar 4 - Higher high major trend reversal, two legged pullback in a bear move high of yesterday but doji so low probability and more sideways likely
  • Bar 6 - Follow through but doji, need more breakout
  • Bar 7 - Strong breakout but need follow through. Probably always in short but bulls want opening reversal, fail, failure breakout 79 and big two legged pullback in a bull move 79
  • Bar 8 - Opening reversal 15 minute 20 bar moving average plotted on a 5 minute chart, two legged pullback in a bull move 79, strong bull bar, possible low of the day, but 3 strong bear bars so sell above or sellers at the high of the bar and probably scaling in higher, always in short. Probably not high enough probability unless swing stop and scale in for scalp, but strong enough so bad for bears. Weak bear so probably leg in trading range. Probably up for about 5 bars, then test down
  • Bar 13 - Lower high major trend reversal but 3 consecutive bull bars so always in long, buy below or buyers at the low of the bar and probably scaling in lower, probably trading range. Ok swing sell or short but sideways likely. Stop for bulls below 8 or 10, stop for bears above 4.
  • Bar 14 - Tight trading range, bad for scalping with stop entries unless using swing stop so limit order order scalps. Always in long, stop below 10 or 8
  • Bar 20 - Possible triangle 13 16, ok swing buy or long, possible scalp
  • Bar 24 - Two inside bars, breakout pullback buy or long but top of trading range so swing or wait. Final flag 20, but buy below or buyers at the low of the bar and probably scaling in lower after 3 bull bars
  • [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