Brooks Trading Course

Learn to Trade Price Action Consistently

 

More results...

Emini Strong Entry Bar after Low 2

By

Trading Update: Monday September 18, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed a strong entry bar after triggering the Low 2, last Thursday’s low.
  • While the signal bar for the second entry short (Low 2) was a bull bar, the entry bar (Last Friday) was a big bear breakout.
  • Last Friday’s breakout bar is a surprise, so there will probably be a second leg down.
  • The bears are hopeful that today will be another strong bear trend bar, increasing the odds of lower prices.
  • The bulls want the opposite and to form a strong bull reversal bar today, closing on its high.
  • More likely, today will not be another strong bear trend bar, which will disappoint the bears.
  • Even if today is a bull trend bar, there will probably be sellers above the high, and the bear will try for a second leg down after last Friday’s bear breakout.

Emini 5-minute chart and what to expect today

  • Emini is down 2 points in the overnight Globex session.
  • The Globex market was in a tight trading range for several hours and broke below last Friday’s low recently.
  • The bears are hopeful that they will get strong selling today; however, it is more likely that they will find buyers below last Friday’s low.
  • Traders should pay attention to last Friday’s low as it will likely act as support.
  • Traders should consider not trading during the first 6-12 bars unless they are comfortable with limit order trading.
  • Most traders should try and catch the opening swing that typically begins before the end of the second hour after forming a double top/bottom, or a wedge top/bottom.
  • There is a 40% chance that the opening swing will double the opening range. This provides excellent risk/reward for swing traders.
  • Lastly, there is an 80% chance of trading range open and only a 20% chance of a trend from the open. This means traders should expect a trading range open until proven otherwise.

Friday’s Emini setups

SP500 Emini 5-Minute Chart Small Pullback Bear Trend From The Open

Al created the SP500 Emini charts.

Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a near 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members get current daily charts added to Encyclopedia.

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter. These therefore are swing entries.

It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.

EURUSD Forex market trading strategies

EURUSD Forex daily chart

EURUSD Daily Bad Follow through After Sell Climax
  • The EURUSD formed a sell climax last week and went below the May 31st low.
  • While the bears have done a good job getting to the May 31st low, the market is forming consecutive sell climaxes. This will increase the odds of a pullback and possible test of the moving average.           
  • some bears sold the September 14th breakout and were disappointed by the bad follow-through. They may look to buy back shorts at their original entry, the September 14th close.
  • The bears hope they can break far below the May 31st low. However, the bears will likely be disappointed, and the market will test the moving average soon.
  • Since the September 14th bear breakout is a possible exhaustion bar, the bulls will want a test of the bar’s high.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Bull Trend Then Midday Reversal

Al created the SP500 Emini charts.

End of day video review

Here is YouTube link if video popup blocked:

Emini End of Day Review – Monday September 18, 2023 – Brad Wolff

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

Trading Room

Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room days. We offer a 2 day free trial.

Charts use Pacific Time

When times are mentioned, it is USA Pacific Time. The Emini day session charts begin at 6:30 am PT and end at 1:15 pm PT which is 15 minutes after the NYSE closes. You can read background information on the market reports on the Market Update page.

>