Continue reading...Here is an example of using the Bar-by-Bar method to read the market based on its own actions via Wyckoff Method of Market Analysis. This example shows how to integrate background conditions or market structure, trend lines, multiple time frames, and the individual bars as it unfolds on the chart. This is from the S&P e-mini market on 3 and 15-minute time frames. The method is applicable in any market on any time frame.
Background – Price rallied after the open, and then spent an hour reacting in a slow drift down. Volume was less on the reaction than the volume on the rally off the AM lows (seen by the red line). Spreads were also generally narrower on the reaction, and as the reaction progressed, volume receded. A Higher Low (HL) was put in, and the market begins to rally.
After an earlier, failed attempt to break above resistance at 1, price held its gains at 2 on...
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