I said yesterday that the Emini probably would trigger the weekly sell signal by falling below last week’s low early this week, but the odds were that there would be buyers below because the weekly chart is in a tight trading range. Today triggered the sell by falling below last week’s low, but rallied back up to test last week’s low at the end of the day. There were a lot of buyers below the sell signal bar, which was a reasonable expectation, given the context.
Today also closed a gap on the daily chart, but that lacks significance because the chart is in a trading range and most gaps fill, and the trading range continues. It is possible that tomorrow gaps up to form a one day island bottom, but since the Emini is in the middle of a trading range on the daily chart and most bars are dojis, the odds continue to favor a lot of trading range price action.
Original post was published at Al Brooks Price Action Trading Blog. Check Brooks Trading Course and get The most comprehensive source of information on price action trading available!
