Download Subtitles for Emini Review - Feb 05, 2026 Analysis

Hey everybody, I hope everyone is doing well and had a good day. And thank you for joining me for today's end of day review of the E- Mini 5 minute chart for Thursday, February 5th, 2026. And I'll put the timestamp in the description of this video when the review starts. But before we begin the review of the five-minute chart, there's a question that I wanted to answer. So, somebody commented on one of my recent videos and they were expressing their confusion when it comes to deciding whether to look at the Globex chart or the regular trading hours chart, the RTH chart. And I think it's a good question that's worth bringing attention to so that we don't have confusion with it moving forward. My initial thought with that question is that it's definitely not something we want to take too much of our attention. We don't want to give too much of our attention to it because we can solve it pretty fairly simply and that's by understanding that the context carries over and both charts are going to give us basically the same picture. If you think about gaps, why is there a gap down going into the day? On the RTH chart, price closed at 400 p.m. yesterday here at 6,914 and on the open of the day. So overnight, the market must have traded lower. price has fallen and we opened at 6853 and a half. So it's more than 50 points that the market fell in price overnight. And it doesn't matter whether it's overnight, you know, it doesn't matter the time frame. All that matters is that price was way up here and now price is way down here. If we look at the Gloex chart, it's going to give us the same information. It's just going to give us more detail. So, this person is wondering, should I use the RTH chart or the OEX chart? [clears throat] The reality is that you use whichever chart you want to use. I think it's useful to use the GlobeEx chart at least in the first hour or so just because seeing the bars to the left helps me but especially I mean there's really an easy way to think about it which I'll get into no matter what happens we can see here Globeex chart clearly a strong bare breakout covering a lot of bars and a lot of points bulls really not making money through this entire sell-off minor reversal here, a brief second leg, but this is still a minor reversal on the open. And you've heard Al talk about this in the course in the books. Anyone who's studied Al knows he talks about how reversals are common on the open. And one way that you can kind of take away that mysterious factor is by looking at the GlobeEx chart. You have more information. You can see rally bars one, two, and three on the open, but following a steep selloff and testing resistance. So, three bar micro channel for the bulls. Yes. But do you really want to buy at resistance after this big sell-off? Price may have to go lower to find strong buyers. I'm not necessarily convinced that bars one, two, and three was because of strong bulls buying. I think more likely these bars were produced by strong bears taking profits, probably at a measured move target. And that's in part due to all the overlap and also the tail on bar three. It's telling me we rallied, pulled back, rallied, pulled back, rallied a third time. We're not really breaking out of all the bars left. So, that's good to know on the GlobeEx chart, but let's go back to the RTH chart. How can we use what we see with the gap to give us a maybe not as complete picture as the GloEx chart, but how do we interpret the gap down? You can remember that a gap is just a space between two prices. So, every trend bar is a gap. Look at bar 77 yesterday. It's a trend bar, but you can also call it a gap. There's a space between two prices. There's a space between the low of 76 and the high of 78. There's a space between the close of bar 76 and the close of bar 77. Market moved a big distance in a small amount of time. That traps traders, creates resistance, and produces second legs. The bears had a breakout follow-through, a pullback, and a second leg. And then they took profits on that second leg, which produced bar 80. But this is still a minor reversal, three bar micro channel, or excuse me, tight bare channel. Not a micro channel, but tight bare channel. Minor reversal, although it's a deep pullback, and then gap down. That's a new bare breakout. You can measure it from the high of 81 to the open of the day. You can measure from the close of the prior day, the close of 81 to the open of the day. There's always different ways to measure the breakout. So the gap down can be seen as a bare breakout bar. The result, first of all, we get close to a 50% pullback on bar five and then a symmetrical second leg down. So, yeah, we're missing some information, but also there's breakout points along the way that the market's retesting. Yesterday's low is a big one, but also all of these higher lows during the rally become resistance. So in short, blowback's chart will give you more information, but the RTH chart will tell you the same information in less detail. You don't need to see the Globex chart to know that it's either a bare trend or a bare channel. Some sort of bare breakout occurred. You just don't know if it was a bare breakout followed by a trading range. You don't know if it's a consistent tight bare channel. You don't know if it's a wide trading range. Big down, big up, big down. But either way, the general principle remains true that breakouts get second legs. So if there's a gap, you're probably going to get a second leg in the direction of the gap most of the time within the first 12 or so bars on the five minute. One more thing I want to add is that I mentioned there's kind of a simple way to deal with that. I said you can imagine there's bearish price action based on the gap down. And the same is true for when there's a small gap or no gap. Look at this day. Very small gap up going into the day. What does that tell us about the GlobeEx session? Means that it's a trade range. you don't have to go and check the GlobeEx chart to tell you that it's a trading range. And usually when that's the case, I won't even use the GlobeEx chart. I'll just look at the five minute RTH chart. So in this case, when there's a small or no gap, I'll just continue trading as if it's a continuous chart because the price will obey the support and resistance from the prior day. Anyway, here's the prior day's high. So we can look really quickly at the end of second. Here's the close of the day back here. So here's the glowback session for that small gap that we can interpret. or infer that it's a trading range. And the result is that it's a trading range. Of course, it's possible that it's an opposite or it's a reversal. It could have been a bull trend followed by a bare trend and the gap looks like price didn't move, but there's actually momentum. That's kind of what we see here. You know, it was more bearish going into this day, but overall, it's a trading range. you have this decent rally. The market's not clearly in a bare trend at this point. It's just that there's this bigger tight bare channel getting a deep pullback and then a second leg. But that's where the first bar of the day actually reached. So there was support there. It was not necessarily going to be this big bare trend. This was a reset of the market cycle. So I hope that's helpful. Okay, for the five minute chart today, we had a gap down going into the day, which we talked about. And whenever there's a gap, especially a big gap, the expectation is a second leg in the direction of the gap, which means the rally bars one through four is probably a minor reversal. Also the structure bar one rallied, pulled back, rally, pulled back, rallied a third time. That's three pushes up. It's a micro channel for the bulls. So the downside is probably limited and the bulls will probably get a second leg, but it could have been stronger with less overlap, bigger bull bodies. The context, like we said, with the gap down supports a second leg down. So, increased risk of this being a trading range open and an opening reversal for the bulls, especially when bar two, bars one and two really decent for the bulls. Even though bar one doesn't have a bull body, it nearly closed on its high. We know the second half of this bar probably had some decent momentum. The bar sold off and then rallied into the close. relatively shallow pullback and then a follow-through bar. So, actually really decent bars one and two for the bulls. But because it's big down, big up, you have to assume that the reversal is minor and the lows will be tested. Also, it's nice to know that stat bar one remains the high or the low of the day only about once a week. So, about 20% of the time, it's not very likely. So, the bar one low is a test target. It's a magnet. Probably are going to go there before we go much higher. And then three is a warning that traders are buying pullbacks and scalping out. Why does bar three have so much overlap with the prior bar? And why doesn't it close on its high? It's an indication that this is beginning to channel on the smaller time frame. And because it might be leg and it's after a gap down, you have to be careful buying here. and then an inside bar for indicating even more momentum stalling for the bulls. The trader equation is better for the bears here because the gap down is likely to get a second leg. Bulls have now three or four pushes up on the smaller time frame structure. I still think bars one through four is enough buying for a second leg. It's just that the pullback could be deep. Like I said, bar one, the bar one low is a test target and the market's not going to forget about it. We may have to come back here before going much higher. Outside down bar five, second leg down likely. We know gap down, second leg down likely. So, always in short below bar five. I don't know if it ever became always in long. I think it was always in long on the close of bar two. But then here, this is disappointing. If you bought more sideways than up. So, and then especially when you get bar five, it's always in short. Probably on the close of five, certainly below bar five, always in short. Reversal and follow through. Strong bare signal. Second leg down. Likely sell the close. So, pullback and then seven getting to that bar one target. Three bar micro channel second leg down likely. I mentioned the gap down possible leg one leg two measured move nine reach the smaller one. Another possible way to draw it is from the high of 81 the high of the reversal bar to the close of the gap down which is actually the open of the day. Bar nine just about reaching that as well. Not sure if it actually quite got there. Turned on the snap mode. So bar 10 did not quite get there. A little reaction, but 10 more likely a minor reversal after all these bear bars. Second leg down likely. Bar 10's a still a close bar. It might be enough for a small second leg, but it's still always in short. And that magnet measured move target is probably going to be reached. And it's reached on bar 12. Getting a small second leg. This is still a micro channel. So the breakout is growing on the higher time frame. Here we can count we actually can count three legs down. Micro channel pause in momentum a smaller bar. So volatility expansion, volatility contraction, volatility expansion, pullback. So I'm counting one, pause, two, pause, three legs down. And in here, this is three legs on the smaller time frame. So increases the chance of a minor reversal. Still always in short, but you can expect a pullback, which means it's okay to take profits on shorts and look to sell higher. 10 or excuse me 14 similar to bar 10. Maybe it's sell the close. It might be enough for a small second leg, but it's still always in short. Bulls haven't done enough to break a trend line here. And 15's a weak follow-through bar. So technically breakout follow-through, but weak and bad context. Tight bare channel, micro channel, second leg down likely. So sell the close 15, sell above 15 because it's always in short in a strong bare trend. Sell for any reason. But bigger picture now. One, two, possible third leg down. Probably buyers at the new low. Downside may be limited. Market going sideways in a tight trading range. Possible final flag. Good for the bulls actually because the more the bulls can go sideways, the more they break this bare trend line. and the day structure supports some sort of trading range day. It's probably not a bare trend day. Remember the buying on the open was actually fairly impressive. Bars one and two. A pretty decent signal. I don't think traders have forgotten about that price. Somewhere in this area, it might be yesterday's low, might be the close of two. It might be the breakout point at the low of bar four. I won't keep all these here, but my point is that there's a lot of breakout points and magnets to be tested in trading ranges. Breakout points and magnets get tested. And my thought is that it's probably a trading range day today. Big up, big down on the open. Lots of trading range price action here. And daily range is already at this point almost 80 points which must be around the daily average. I don't have it off the top of my head but it's unlikely that we grow a lot more to the downside which only leaves room for the upside. Of course it can be a trend day and it can the range of the day can double. But when we here's the daily chart context and I'm going to do this zoomed out. You can count three legs down in a bare channel testing support in a trading range. So the downside today probably limited. So, we'll just use yesterday's low as a more major test target. So, the problem with selling here bars 1920, you have a nested completed structure. The bears have a breakout bar 16 pulled back and then it got a second leg. This entire micro channel down to 14 or 13 is likely to get a second leg, but there may be a more complex and deeper correction before that second leg begins. The smaller structure, the bar 9 breakout, this got a second leg. That tight bare channel got a second leg. remember from the bar eight is a smaller bar than the breakout bars. So I see that as more of a channel or trading range bar and then a new breakout on bar 9. But then tight channel is actually a micro channel down to bar 13. So breakout pullback reaching that second big target. So I think the downside here might be limited. Another fractal breakout second leg pattern 1920 bare reversal follow through pullback 21 and second leg 21. I don't know if they reached their target. I don't think it quite got there on bar 21. Bar 22. Now we have a wedge structure three or four legs down in a big bull breakout bar. Second leg up likely. It's probably always in long on the close of bar 22 which means by the close by the pullback. Yes, it's forcing you to buy at resistance top of this trading range beginning of the channel the moving average the breakout point the bar one low. So, it's not an ideal trade, but I think the options here are to be long or flat breakout follow-through, but a smaller follow-through bar with yesterday's low in mind as a profit target. First target probably measured move of the bar, bar 22, which looks like the bulls reached it on bar 25. So we may find a minor reversal here but a micro channel with all good closes closing above every bar closing above the high of the prior bar. Lots of qualities going for this bull micro channel. So first reversal probably minor buyers below bar 25. Minor reversal. This is two three legs down on a smaller time frame. We broke below 25. We tested the moving average. Bulls are going to buy this for a minimum test of this high, but also that target there. Since 203 is a smaller bar, this might be a spike in channel on a smaller time frame. 22 is the initial burst of momentum. So, the second leg measured move may be based on the size of 22 alone. That takes you a little higher. So there's magnets up here. High one buy. Bulls make their scalp. Reversal follow-through strong enough for a second leg, which the bulls got on bar 30. Three bar micro channel. Second leg up likely. So 31 probably a minor reversal testing support. The traders, the bears who sold here got trapped. They may use 31 as an opportunity to break even or avoid a loss which creates support. So 31 a buy the close bar. 32 buy the close. Disappointing follow through for the bears. High two buy setup bar 33. Pulls can buy above 33. Looking for a second leg. Outside up 35. Bears got three legs down. One, two, three. Wedge double bottom with 28 bull breakout. Second leg likely. This is a complex two-legged pullback. I said it's a high two. On the lower time frame, it's a it's a high three in here. And again, that second leg may just be based on the size of bar 22. So, bulls made that or just about made that on 35. But also in the channel, they'll probably get to the new high. Probably test yesterday's low. Enough momentum 35. We're going at least probably going at least a little bit higher. But the upside is limited. Probably sellers above 30 and at yesterday's low. Why are there probably sellers at yesterday's low? Market broke below it, tested above it, and then got another strong bare breakout in this area. Remember this breakout point, the bar four low, the bar five low, that's about the same. The traders, the reason there's probably resistance here is because let's think back to bar two or bar three. Bulls were buying betting on a second leg. This is obviously Al Brook's price action philosophy and theory. So, I cannot prove that this is true, but I do believe that it's true and I do trade based on the belief that it's true. And I'll make a separate video on the theory and the basically the overall philosophy. I won't get into it in this review, but basically the belief that I hold is that bars one and two, computer algorithms pick up a burst in momentum. They quantify the strength of a breakout and bars one and two is strong enough for a second leg and second legs are usually symmetrical to the breakout signal. So the bulls who bought here were trapped by the bare reversal. And if they were not quick to exit, they suffered a loss or they're holding a losing position. Maybe they bought scaled in lower. And if a bull bought and scaled in lower, what are they going to do when price gets back to their original entry price? So here we are on bar 35. Are you eager to buy here or are you desperate to sell out of longs? If you think about that logic, bulls are desperate to exit losing positions or break even if they got lucky or if they managed their trade properly. The best scenario for the bulls is to basically avoid a loss or make a small win. If you bought here, scaled in, scaled in, especially if you increased your position size, you may be at a profit at this point. But are you going for a measured move here, or are you just happy to get out here? My belief is that the bulls are just happy to get out here at a relatively good value. So, they're going to sell out of their longs. You also have the bulls who bought down here. Forget about the trapped bulls up here. You got the bulls who bought bar 22 or anywhere through here capturing second legs. And they know the upside is limited because of these bulls. They know it's probably a trading range day. In a trading range, you want to buy low, sell high. We're testing high in the range. So the bulls who bought here capturing second legs as they make profits on their positions they have to reduce their risk and take profits on those positions. So I think the upside here is limited even though 35 strong enough bull bar for a second leg. It might be like three in a trading range. So follow through. 36. Not a great sell. Probably buyers below. Small second leg up likely. But 37 reasonable to be short below it. The only thing is you probably want to use a wide stop, not a stop directly above bar 37 or 36 because 35 probably had enough momentum for at least a small second leg. Some hesitation here that may go above bar 35 and 36 or excuse me 37 and 36. So, you can sell here, but be prepared for a deep pullback. Don't put your stop here. Maybe use a measured move for your stop. But I think it's probably better to be always in short below bar 37. So, if you're long, just exit below 37. And then the bull's getting a small second leg, but finding resistance at yesterday's low breakout points earlier in the day. 40 outside down probably always in short. It's enough of a reversal that it's probably going to get a small second leg down and the structure supports a correction. We're testing a bull channel line. Strong enough breakout. It may get another second leg later, but after three or four legs up, it's two legs up on a higher time frame. testing resistance. It's probably going to correct for at least 10 bars and two legs. That's why it's probably always in short below 37 and 40 reversal and follow through. Bad high one, top of a trading range. Sellers above, sell the close. Three bar micro channel, sell the close, sell above the first pullback, which is 43. Second leg down likely. Bears have a target through our micro channel pullback vacuum test of that measured move target. So second leg but tight bear channel minimal pullback here. So this breakout is growing. So we see two legs one pullback two but it's one leg on a higher time frame and it might be one pullback two. So now this entire tight channel is a breakout signal. Any reversal is probably minor. So sell above 48, sell anywhere, tight bear channel, second leg down likely. So what I'm talking about is from the high to the low close, pullback, second leg target here, which is around the breakout points down here. Another micro channel down to R53. But now you've got three legs down. It's still a tight bare channel. Second leg down likely, but one, two, three pushes down. Testing support breakout point here. Three legs down here. This bull breakout still may need a second leg. So, there's reasons that the downside here might be limited. I forget if we looked at this measured move leg one pullback leg two. So a leg two measured move in leg three as support in a trading range. Better to take profits here. 54 not a particularly strong bullbar but the context supports a reversal or a at least a correction. So 54, it's okay to exit shorts above it, but it may be a little aggressive to buy above it. Bull breakout 55, but big tails still not ideal for buying after a tight bare channel. Bulls need one more bar. And then the bulls get one more bar, three bar micro channel. It's probably buy the close here on bar 56. It was always in long based on context here, but for me, it's always in long based on price action evidence here. So this is by the close. Second leg up likely target possibly this leg one leg two brings you back to that resistance. The only thing is it's actually more bearish overall. The bigger bare breakout the gap down this big breakout. This still may be getting a second leg down. something like this. Leg one deep two or three-legged pullback and then a second leg target down here. So the upside for the bulls, the bulls may be increasingly likely to fail because it's a trading range and you know there's disappointed bulls up here. Again, tight bare channel. the traders who bought here trapped, disappointed, looking for any rally they can get to avoid a loss or break even. So I still think in this area there's trapped bulls and therefore resistance but strong enough micro channel here for second leg. It is by the close 57 accelerating but then a smaller bar 58. This is already possibly a measured move up. And it looks like the next bar 59 reached that leg one equals like two measured move. Testing resistance. Not quite at yesterday's low, but enough tests of this area. We tested it here. The bar five low. Bar 7 tested it 30 and several bars through here. So leg one, leg two, top of a trading range and testing an area of resistance trading range bar probably better to sell the close. If it's when you think about always in if you had to be in the market at this instant, it's probably always in short based on context. You've got two legs up to a resistance area high in a trading range. It's true that the bulls have still some distance before this measured move target is reached, but they don't necessarily have to get there. And especially if you consider, you know, there's different ways to draw it. 22 23 maybe that's the initial burst of momentum. Then there's a pullback 24. So maybe some traders are seeing this as the target and they're already taking profits. There's different ways to measure breakouts and to look at it. But the evidence here, three bar micro channel, second leg, measured move, top of a trading range, and a trading range bar. If anything, it's probably better to look to be short and take profits on your longs because bulls are taking profits at measured move targets at the top of a trading range. It's also leg two. There's different ways to look at this. Maybe it's leg one. All of this is part of the pullback and then a new burst of momentum, possible second leg trap, top of a trading range. That's why the context supports always in short on the close of 59. But of course, there's no bare breakout yet, at least on this time frame to warn us or to tell us that it's always in short. So on the close of 59, it's always in short based on context, but no price action, no price action evidence. And then there's the bare breakout bar 60. So that's a sell close bar always in short. It's possible you get a second leg after this much buying. You probably will, but in this context, top of a trading range, strong bare breakout, second leg down, likely sell the close, sell a pullback. Bears get immediate follow through still. We'll probably find support down here. We did bounce on 61. It's also a measured move of the bar. So 60 immediately got one R. It's also testing this breakout point the bar 54 high but much momentum to be buying second leg down likely. So minor reversal possible but more likely. Do you really want to buy here after the bears have a breakout and follow through that's likely to get a second leg and the best can hope for is a minor reversal or a bounce. So, it's probably better to look to sell finding some support. It's possible we get that small second leg, but tight bear channel, micro channel, second leg down, likely. So, what do you do here? Big up, big down, testing support. In this tight trading range, it's probably better to wait for the breakout. Breakout direction close to 50/50. Tight trading range. Bulls may get a second leg. Bears may get a second leg. Both sides look strong enough for a second leg. The bull breakout trapped traders created support. The bear breakout trapped traders created resistance. Basically, you could probably take either side here. And if you manage the trade correctly, you can make money. We're in a buy zone, but there's the increased risk that this bare breakout gets a second leg before the bulls get very much because the bull break out may have been a second leg trap, trapping bulls into tra into into buying too high. And it's actually more of a vacuum test of resistance than a reset of bull strength and momentum. Bulls getting their second leg, but the upside limited. Remember, probably sellers here at this breakout point back to top of a trading range. Call it a bare channel. Here's a bare channel line, but it's very broad. And either way, you trade the channel like you would trade a trading range. Buy low, sell high. So, another might be a fractal second leg trap. Leg one, pullback, leg two. But why is bar 68 growing in a parabolic fashion at resistance? So it might be more of a sell the close bar upside probably limited reversal bar 69 probably sell the close always in a short bear's getting their second leg also the bigger picture maybe getting its second leg maybe from here to here or here or the low close there's a leg two target might be too late in the day to reach that there's also support the bears would have to get through maybe this tight channel is getting a symmetrical second leg. So there's actually a reaction to that. This breakout point, this tight bare channel breakout on a higher time frame. Leg one pullback leg two. Leg two subdivided into two legs. So downside limited 75 an outside bar at support in leg two. Maybe even leg three nested leg three in a trading range. So one, two, three. One, two, three. 75 maybe better take profits. Context supports always in long, but price action tight bear channel supports always in short. So minor reversal likely, but still lower prices ultimately more likely. minor reversal. Reversal followed through 7778, but it's weak. It's testing resistance and it's following a tight bear channel that's probably going to get a second leg. 78 is a to sell the close bar. Bulls have two legs up. One pullback, two minor reversal, tight bear channel, breakout, pullback. Probably will get a second leg. And the the bears got their second leg. and then followed by profit taking again nested three-legged pattern. Three legs here, three legs here, low in the trading range and then just out of time in the RTH session. All right, that's it for today's end of day review. Thanks again for joining me for today's video and make sure you check out the description of my videos for many more resources on the topic. All right, thanks again and I hope everyone has a great night.