{"id":112238,"date":"2021-02-04T06:20:00","date_gmt":"2021-02-04T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=112238"},"modified":"2021-02-04T13:51:29","modified_gmt":"2021-02-04T21:51:29","slug":"emini-3-bull-days-testing-all-time-high","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-3-bull-days-testing-all-time-high\/","title":{"rendered":"Emini has 3 bull days and testing all-time high from January"},"content":{"rendered":"\n

Emini and Forex Trading Update:
Thursday February 5, 2021<\/h2>\n\n\n\n

I will update again at the end of the day.<\/p>\n\n\n\n

Pre-Open market analysis<\/h2>\n\n\n\n

Yesterday was the 3rd consecutive bull day on the daily chart, but it had a small bull body. The bulls want a breakout above the month-long trading range, which means testing all-time high from last month. <\/p>\n\n\n\n

Three consecutive bull days is getting extreme when a market is in a trading range. That increases the chance that the Emini will pull back for a day or so. Therefore, if there is an early rally today, traders will watch for a possible reversal down to below the open and the formation of a bear body on the daily chart.<\/p>\n\n\n\n

The bears want a reversal down from around last week’s all-time high for a double top. However, after 3 bull days, most traders will want at least a micro double top before shorting.<\/p>\n\n\n\n

Overnight Emini Globex trading <\/h3>\n\n\n\n

The Emini is up 6 points in the Globex session. Today will therefore open within the 2-day trading range. This increases the chance of more trading range trading today.<\/p>\n\n\n\n

Because the 3-day rally has been strong, the odds favor at least slightly higher prices soon. However, the Emini could pull back for a day or two first.<\/p>\n\n\n\n

The all-time high is only about 30 points above the current Globex price. That is less than an average daily range, and it is therefore within reach today. <\/p>\n\n\n\n

However, with the Emini at the top of a 5-week trading range, there is an increased chance of a reversal down at any time. But the bears will probably need at least another sideways day to create a reliable top on the 60-minute chart. Therefore, the odds favor sideways for at least one more sideways day. If today sells off, the selloff will probably last only one day.<\/p>\n\n\n\n

Yesterday’s setups<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups from yesterday. 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 much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

EURUSD Forex market trading strategies<\/h2>\n\n\n\n
\"EURUSD<\/a><\/figure>\n\n\n\n

The EURUSD Forex market on the daily chart has 3 consecutive days with lows below the bottom of the 2-month trading range. Today’s low also broke below the 1.20 Big Round Number. <\/p>\n\n\n\n

Traders see the trading range as both a head and shoulders top, and a lower high major trend reversal. The January 1 low is the neckline. If today and tomorrow both close below the neckline, this would be a confirmed breakout. Traders would then conclude that a measured move down will be likely. <\/p>\n\n\n\n

The next objective for the bears is to get a couple consecutive closes below the neckline. Then, traders will look for a test of the bottom of the most recent buy climax. That is the December 1 low. Next is the November 11 higher low and start of a 3-week bull channel. Most important is the November 4 low at the bottom of the most recent leg up on the monthly chart. That is the bottom of a 4-month trading range.<\/p>\n\n\n\n

There is always a bull case. If the bulls can create a micro double bottom, or one or more surprisingly big bull bars, traders will wonder if the breakout will fail. However, if the bears get a couple closes below the neckline, traders will expect lower prices, even if there is a 2-week rally back up to around the January 22 lower high.<\/p>\n\n\n\n

Overnight EURUSD Forex trading<\/h3>\n\n\n\n

The 5-minute chart of the EURUSD Forex market sold off to below yesterday’s low, and the 1.20 Big Round Number overnight, but then entered a trading range 5 hours ago. The key price today is the January 1 low of 1.2025. The bears need closes below that low, and it will therefore be important at the end of the day today.<\/p>\n\n\n\n

With the EURUSD being sideways for several hours, day traders are selling rallies and buying reversals up from the bottom. They also have been scalping. <\/p>\n\n\n\n

The fight today will be over the 1.2025 January 1 low. If the bears can get today to close below it, that will be a sign of strength. It would be much better for them if today closes far below. <\/p>\n\n\n\n

The 5-hour trading range is a sign of hesitation and balance. It increases the chance that today will stay around that low all day, and then either close a little below or above it. However, because it is such an important price, there is a slightly increased chance today of either a strong breakout below the trading range, or a strong reversal up. However, stalling at a key price makes a continuation of the trading range with either a small breakout up or down most likely.<\/p>\n\n\n\n

Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups for today. 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 much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

End of day summary<\/h3>\n\n\n\n

The Emini rallied in a Bull Trend From The Open today. The lack of strong breakouts in the 1st hour reduced the chance of the rally being very big. The Emini spent a lot of time going sideways, but it kept working higher in a Small Pullback Bull Trend. Since today closed at a new all-time high, there is an increased chance that tomorrow will gap up to a another new all-time high.<\/p>\n\n\n\n

Because today was a buy climax, there is a 75% chance of at least a couple hours of sideways to down trading tomorrow that begins by the end of the 2nd hour. This is especially true after 4 consecutive days up in a tight bull channel on the 60-minute chart. However, because the Emini is testing the all-time high, there is an increased chance of either a strong trend up or down.<\/p>\n\n\n\n

See the weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n

\n\n\n\n

Trading Room<\/h2>\n\n\n\n

Traders can see the end of the day bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n

\n\n\n\n

Charts use Pacific Standard Time<\/h3>\n\n\n\n

When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Market Update<\/a> page.<\/p>\n\n\n\n

\n","protected":false},"excerpt":{"rendered":"

Emini and Forex Trading Update:Thursday February 5, 2021 I will update again at the end of the day. Pre-Open market analysis Yesterday was the 3rd consecutive bull day on the daily chart, but it had a small bull body. The bulls want a breakout above the month-long trading range, which means testing all-time high from […]<\/p>\n","protected":false},"author":4,"featured_media":112370,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[281,60],"class_list":{"0":"post-112238","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"tag-eurusd-forex","9":"tag-sp-emini","10":"entry","11":"override","12":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/02\/Emini-sell-climax-and-then-wedge-top-in-trading-range-day.png","author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/112238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=112238"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/112238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/112370"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=112238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=112238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=112238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}