For Wednesday May 12, 2021
Full Emini and Forex daily reports will only be issued when Al is in the Trading Room. See sidebar calendar for “No Webinar” days when this “SP500 Emini trade setups” post will replace the daily report.
For Thursday May 13, 2021
Charts use Pacific Time
When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the Market Update page.
Hello Dr. Brooks,
Can Bar 11 – 13 – 18 be considered a wedge/bull channel line from 11 to 13, and 18 is a failed BO above the line?
There are often several ways to draw lines, and the chart would be too crowded if I drew everything. I choose what I think is the most important line on this time frame.
7 11 13 is a wedge, and 16 17 18 is a bull trap and a failed breakout above that wedge. On the 5-minute chart, I think more computers would see the wedge as 7 or 9, then 13 18, and that is why I selected that line.
Al hey, If you consider bars 16-18 as bull trap why you mark them on the chart as buy? Alternatively is it smart-wise to buy the 3rd leg of a developed wedge top?
I think Al mark above 16 a buy is because it is a high 2 buy signal.
Above 17 is also a good buy signal as it is a good bull body. It could be a successful break above the pull back.
Yesterday market opened far above 20EMA. This could be a bull trend whole day.
You see it’s a successful wedge because the market went down after 18. But at bar 16 and 17, you never know how the market will go. Therefore above 16 and 17 are reasonable buy.
Hi Eli,
As Jeffrey notes, it is still a buy but you need to be cautious. On the Daily Setup detailed chart for the day, Al noted the following for these 2 trades:
“3rd leg up in Tight Bull Channel so possible Parabolic Wedge top. Low probability of big move up, so only B if can make quick exit on reversal down”
It is a swing buy. Most swing trades are low probability, which means most do not lead to swing trades. But enough do so that it is a profitable strategy.