Huge gap up preludes Tuesday E-mini price action: Brooks

Brooks Price Action Analysis for Tuesday, March 4

pending chart 2672

Big gap up, broad bull channel to above the all time high, but might form expanding triangle on daily chart. Probably scale in bears up here above feb high. Surprise reversal today so probably at least a little more up, maybe to top of weekly bull channel around 1888. 2014 likely to be a trading range on monthly chart (see my youtube video from jan 5, http://www.youtube.com/watch possible v=mi7fxs05trg) and we are probably close to the top of the trading range.

  • Tuesday, March 4, 2014
  • Bar 1 - Big gap up, always in long, but tail, just below high of last week = all time high = pink line, sell above or sellers at the high of the bar and probably scaling in higher and sideways likely.
  • Bar 2 - Double top high of last week, fail, failure breakout 1, but bull body so probably buy below or buyers at the low of the bar and probably scaling in lower and sideways. Ok swing sell or short but better to wait
  • Bar 3 - Sell below or sellers below or signal bar 2 so buy above or buyers above 3. Swing or wait since tight trading range
  • Bar 5 - Breakout but tail. Trend from the first bar bull, stop below 3, but not strong and might get second entry sell above high of yesterday
  • Bar 6 - Fail, failure breakout second entry sell but bull body, only 1 bear body today so low probability.
  • Bar 7 - Strong bear bar but still bull channel. Bulls will buy the close, stop below 1 so more channel. Swing sell or short but low probability
  • Bar 8 - Bull inside bar, breakout pullback buy or long, stop below 1. Breakout pullback sell or short, stop above 7. Still always in long but weak rally. Trading range pa
  • Bar 11 - Wedge 2 7, ok swing sell or short, but tight channel so sideways more likely. Lots of selling pressure, tails, bear bars, so probably bull leg in trading range. Still always in long, but bulls need strong breakout, else will probably reverse and test low of the day
  • Bar 12 - Breakout pullback buy or long but weak channel and possible wedge top soon. Bulls need strong breakout
  • Bar 15 - Wedge 7 11 but doji, 3 bull bars so low probability and sideways more likely. Ok swing sell or short but higher probability to wait for strong bear breakout. Still always in long, stop below 12 = most recent leg up
  • Bar 16 - Bear breakout, but bulls will buy or long close, stop below 12.
  • [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