Breaking down yesterday's e-mini price action

pending chart 3083

Trend from the first bar bear, consecutive sell climax. Just below 60 minute leg 1 equals leg 2 measured move and top of weekly channel around 1951 above. Odds favor reversal down to bottom of channel, but might get one more new high first for second entry sell. Probably sideways for at least a couple of weeks to form major trend reversal before much down. For more, see http://brookstradingcourse.com/how-to-trade-manual/trend-channels/.

  • Thursday, June 12, 2014
  • Bar 1 - Tails, middle of yesterday trading range, probably buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 3 - Fail, failure breakout low of yesterday, 3 day broad bear channel, good reversal bar, ok swing buy or long above. Yesterday was small day so possible outside up bar day today. Strong bear 2 so not high enough probability unless swing stop and scale in for scalp
  • Bar 4 - Breakout pullback sell or short but doji, always in long, buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 6 - Micro double bottom 3 but bear body. Swing only, tight trading range
  • Bar 8 - Two legged pullback in a bear move sell or short but doji, tight trading range, probably buy below or buyers at the low of the bar and probably scaling in lower. Ok swing sell or short but higher probability to wait for strong breakout up. Still always in long 3
  • Bar 10 - Fail, failure breakout low of yesterday second entry sell, ok swing buy or long but another weak buy or long sell below or sellers below or signal bar, tight trading range so low probability
  • Bar 12 - Bear breakout, big bar, always in short, probably two legs down
  • Bar 13 - Fail, failure breakout, bull body, ok swing buy or long but probably sell above or sellers at the high of the bar and probably scaling in higher and sell below or sellers below or signal bar for two legs down
  • Bar 16 - Fail, failure breakout, consecutive sell climax, measured move, possible low of the day, but bear body, 6 bars down so probably sell above or sellers at the high of the bar and probably scaling in higher near moving average. Possible buy below or buyers at the low of the bar and probably scaling in lower if wide stop and scale in, swing or scalp but better to wait for a strong bull breakout or second entry buy.
  • Bar 18 - Breakout pullback sell or short but small bars, tails, probably more sideways to up and buy below or buyers at the low of the bar and probably scaling in lower.
  • Bar 23 - Double top 13 at moving average, but 3 consecutive bull bars with close near high, 6 bar microchannel, always in long, buy below or buyers at the low of the bar and probably scaling in lower, but possible trending trading range day. Bulls need stop below 16 or 19 because trading range might have deep pullback. Should reach top of channel by going sideways to up
  • [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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