Monday April 25 E-mini price action

April 26, 2016 08:49 AM

E-min S&P 500 closes out Monday's day session on a high note. 

  • Bar 1 - Higher low, good bull bar, always in long, room to moving average, ok buy or long, but middle of trading range so low probability so swing only or wait and big bar so big risk. Probably limit order market, sellers scaling in above, buyers below, both scalping and early trading range
  • Bar 2 - Lower high but consecutive bull bars, always in long. Low of yesterday and moving average are magnets. Better to wait
  • Bar 3 - Big bear bar, new low of the day, room to low of yesterday, but possible limit order market, sellers scaling in above, buyers below, both scalping and buy below or probably buyers at the low of the bar scaling in lower. Better to wait
  • Bar 4 - Consecutive bear bars, room to low of yesterday, sell the close, sellers above or probably sellers at the high of the bar scaling in higher, more down, bull possible not much more down
  • Bar 5 - Higher low, test low of yesterday, but 3 bear bars, probably sellers above or probably sellers at the high of the bar scaling in higher, but trading range price action and low probability so swing only or wait to sell or short too low. Always in short, bulls probably need micro double bottom
  • Bar 6 - Bull bar but tail, 3 bear bars, sellers above or probably sellers at the high of the bar scaling in higher
  • Bar 7 - Breakout pullback sell or short, possible buy below or probably buyers at the low of the bar scaling in lower, but always in long, and channel below low of yesterday. Ok sell or short if stop above 1
  • Bar 8 - Bear close, sell the close
  • Bar 11 - Still sell the close, but bull bar so many bears will scale in and try to get out around 10 close
  • Bar 14 - Bear outside bar surrounded by inside bars, always in short, room to trend channel line below, but tight trading range, limit order market, bad for scalping with stop entries unless using swing stop, possible buy below or probably buyers at the low of the bar scaling in lower for scalp up. Ok swing sell or short since possible measuring gap 5 low and 13 high, but better to sell or short higher.
  • Bar 15 - Microwedge 11 13 but tight trading range, limit order market, bad for scalping with stop entries unless using swing stop, tail, low probability buy, probably sellers above, and sideways more likely than up. Limit order market, sellers scaling in above, buyers below, both scalping. Always in bears probably exit above, but low probability buy, probably sellers above, and sideways more likely than up
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.