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Emini Weak Buy Signal Bar in Tight Trading Range

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Trading Update: Friday November 22, 2024

Emini end of day video review

Emini EOD Review Joseph Imbornone

Follow Joseph’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini formed a large doji bar yesterday; however, it is in the middle of a tight trading range on the daily chart.
  • Yesterday, there was a weak buy signal bar, increasing sellers’ odds above yesterday’s high.
  • The bears do not mind a rally up to the November high as long as it forms a double top.
  • Next, the bears want a break below the November 15th neckline and for the market to fall for a measured move down to the November 4th low.

Emini 5-minute chart and what to expect today

  • The Emini formed a bull bar closing on its high with bar 1, and the market rallied for 3 bars.
  • The rally is strong enough to increase the odds of a second leg up.
  • The Bulls are hopeful that bar 9 is a pullback that will lead to the second leg up.
  • The bears are hopeful that bar 7 will be an opening reversal and that the market will break below yesterday’s high.
  • Traders should pay attention to yesterday’s high as it will likely be an important magnet.
  • As of bar 9, the market is forming an open trading range and is in breakout mode.
  • The market is Always In short with bar 9, but it is not strong. This increases the odds that the selloff will become a bear leg in what will become a trading range.
  • traders that want a higher probability must wait for a stronger bear breakout with follow-through.
  • Today is Friday, so weekly support and resistance are important. So far, the weekly chart has formed a high 1 buy signal bar. Today, the Bears want to form a strong selloff by creating a tail above this week’s buy signal bar. That would lower the probability of buying above this week’s high on the weekly chart.

Yesterday’s Emini setups

SP500 Emini 5 Min Chart Wedge Bottom and Then Bull Trend Reversal

Al created the SP500 Emini charts.

Here are reasonable stop entry setups from yesterday. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. 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.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Trading Range Day

Al created the SP500 Emini charts.

EURUSD Forex market analysis

EURUSD Forex daily chart

  • Yesterday, the EURUSD formed a bear breakout bar, closing on its low, and traders sold the close, expecting lower prices.
  • Today’s bear breakout bar was bigger than yesterday’s, making the market more climactic and causing profit-taking during today’s bar.
  • The market always went below the October 2023 low, which was a likely area where buyers would be found.
  • The bulls want to create as big of a tail as possible below today’s bar.
  • Next, the bulls want the market to form a strong bulls reversal bar next week, which would cause bears to begin taking partial profits.
  • Overall, the EURUSD is getting climactic and will likely have to pull back soon and test the moving average.

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.

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