Al Brooks provides bar-by-bar analysis on a five-minute chart of the previous day’s price action in the E-mini S&P 500. This is his analysis for Tuesday, Jan. 2, 2018.
- Bar 1 - Gu, big bear bars, but big risk and always in long after big gu so low probability so swing only or wait, so buy below or probably buyers at the low of the bar scaling in lower. In fri tight trading range so possible trading range open so mostly a limit order market
- Bar 2 - Opening reversal up from moving average, but strong bull bars, but top of tight trading range so low probability so swing only or wait, big risk so limit order market, sellers scaling in above, buyers below, both scalping
- Bar 3 - Micro double-top, possible high of day, but low probability so swing or wait, but doji, always in long, limit order market, sellers scaling in above, buyers below, both scalping, buy below or probably buyers at the low of the bar scaling in lower
- Bar 5 - Breakout pullback buy or long, always in long, possible low of day, but low probability so swing or wait, ok buy or long, but tail so possible more sideways
- Bar 6 - Big bull bars, buy the close, possible low of day, but low probability so swing or wait
- Bar 7 - Follow through, buy the close, but tail so possible pullback soon
- Bar 9 - One-legged pullback in a bull move but bear bars, tail 7, possible sellers above or probably sellers at the high of the bar scaling in higher, but measured move target(s) above. Yesterday was a big day so today will probably not get far above high of yesterday. High of the day should be around high of yesterday, then possible test open of day for doji day or doji bar
- Bar 13 - Parabolic wedge 1, 8 at mmu from low to open of day, possible high of day, but low probability so swing or wait, but small pullback bull trend, better to wait for a strong bear breakout, or more selling pressure and second entry sell
- Bar 16 - Breakout test or bought 1 high, bull two inside bars, always in long, but big bear bars 14 so big up, big down, big confusion so trading range likely, better to wait for a strong bull breakout, or more buying pressure and second entry buy, better to wait for a strong bear breakout, or more selling pressure and second entry sell, possible limit order market, sellers scaling in above, buyers below, both scalping
- Bar 22 - Lower high but minor trend reversal so trading range more likely, bull bars, tight trading range. Should test open of day at some point. Possible doji day or doji bar and inside day after fri big range
- Bar 28 - Double bottom higher low 14, moving average gap bar, always in long, ok buy or long but probably trading range or possible triangle. Should test open of day by eod< but might go above high of yesterday first
More bar-by-bar analysis, daily webinar and trading course info can be found here and also here.
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.