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, Feb. 20, 2018.
- Bar 1 - Big bull bar at 60 minute 20 bar exponential moving average and just above low of yesterday, possible low of day, but low probability so swing or wait, but in trading range and trading range day likely
- Bar 3 - Opening reversal down from moving average, but 2 big bull bar, buy below or probably buyers at the low of the bar scaling in lower, always in long
- Bar 4 - Surprise bar up, at least a little more up likely, but need breakout above 37 neck line of double bottom
- Bar 5 - Two legged pullback in a bear move 3, double top lower high 37, possible high of day, but low probability so swing or wait, but more likely more trading range and limit order market, sellers scaling in above, buyers below, both scalping
- Bar 7 - Higher low, but doji, 2 big bear bar, limit order market, sellers scaling in above, buyers below, both scalping
- Bar 11 - Two legged pullback in a bear move, lower high in bear channel, moving average, but 4 bull bars, low probability short, probably buyers below, and sideways more likely than down, buy below or probably buyers at the low of the bar scaling in lower at low of the day and 60 minute 20 bar exponential moving average
- Bar 14 - Fail, failure breakout low of yesterday but 3 big bear bar, bb3
- Bar 18 - Fail, failure breakout low of yesterday second entry buy but bear bars
- Bar 20 - Breakout and follow through, reversal up from 18 bar low, possible low of day, but low probability so swing or wait, always in long, should test 4 close. Yesterday was small so today might become outside up bar day. High of yesterday is magnet above
- Bar 21 - Two legged pullback in a bear move 16 but always in long, should test 4 close since reasonable buy the close surprise bar up, at least a little more up likely
- Bar 25 - Fail, failure breakout, but doji, buy below or probably buyers at the low of the bar scaling in lower. Since top of trading range, might get pullback below breakout point 20 high, but buy below or probably buyers at the low of the bar scaling in lower around moving average
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.