Al Brooks provides bar-by-bar analysis on a five-minute chart of the previous day’s prices action in the E-mini S&P 500. This is his analysis for Tuesday, March 20, 2018.
- Bar 1 - Big bull bar, but 7 consecutive bull bars in parabolic wedge buy climax, better to wait for a strong bull breakout, or more buying pressure and second entry buy. Buy below or probably buyers at the low of the bar scaling in lower
- Bar 2 - Breakout pullback buy or long but big bear bar, parabolic wedge, sellers above or probably sellers at the high of the bar scaling in higher
- Bar 4 - Parabolic wedge, micro double top, close on low, possible high of day, but low probability so swing or wait, ok sell or short for test low of the day and moving average, but tight channel so minor trend reversal so trading range more likely
- Bar 7 - Double bottom 1 but small bull bars compared to 6, and moving average magnet below, sellers above or probably sellers at the high of the bar scaling in higher
- Bar 10 - Opening reversal at moving average, two legged pullback in a bull move, wedge 2 6, always in long, possible low of day, but low probability so swing or wait, but tight channel, 55 high neck line of yesterday double bottom is magnet below, especially since high of the day was perfect mmu. Possible trading range
- Bar 13 - Double top lower high, possible high of day, but low probability so swing or wait, but minor trend reversal so trading range more likely
- Bar 14 - One legged pullback in a bull move but 2 bear dojis at top of trading range, sellers above or probably sellers at the high of the bar scaling in higher
- Bar 16 - Two legged pullback in a bull move but 4 bear bars, limit order market, sellers scaling in above, buyers below, both scalping, low probability so swing only or wait buy or long. Possible triangle. 50% chance of test yesterday 55 high, but 70% chance close above open of day
- Bar 18 - Bull outside bar surrounded by inside bars, but 5 bttr, limit order market, sellers scaling in above, buyers below, both scalping
- Bar 19 - Possible triangle 4 13, but just above moving average, low probability so swing only or wait sell or short, limit order market, sellers scaling in above, buyers below, both scalping
- Bar 22 - Two legged pullback in a bull move 16 at moving average, always in long, but 3 bear bars, tail, apex of possible triangle, limit order market, sellers scaling in above, buyers below, both scalping, yesterday 55 high magnet below, low probability buy, probably sellers above, and sideways more likely than up. Most bars came within 1 profit target of open of day so clearly imp price today. Magnet at end of day
About the Author
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.