{"id":115081,"date":"2021-04-21T06:20:00","date_gmt":"2021-04-21T13:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=115081"},"modified":"2021-04-21T14:09:33","modified_gmt":"2021-04-21T21:09:33","slug":"emini-4th-consecutive-bear-day","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-4th-consecutive-bear-day\/","title":{"rendered":"Emini unlikely to have 4th consecutive bear day today"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Emini and Forex Trading Update:<br>Wednesday April 21, 2021<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Pre-Open market analysis of daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Yesterday was the 3<sup>rd<\/sup> consecutive bear day. The bear bodies are getting bigger so the momentum down is increasing.<\/li><li>These 3 bear days were caused by profit taking. Once there is profit taking in a buy climax, it usually has at least a couple legs down.<\/li><li>The 3-day selloff might be the start of the Emini trying to get neutral ahead of next week&#8217;s FOMC announcement.<\/li><li>The Emini has not had 4 consecutive bear days since October. That increases the chance that today will close above the open.<\/li><li>A streak of 13 consecutive bull days ended last week. That was the most extreme streak since 2011.<\/li><li>Streaks like that are a sign of a very overbought market. The market typically has a difficult time going much higher for several months. <\/li><li>With the Emini as overbought as it is, and at the end of the March\/April seasonally bullish window, the bull trend is probably converting into a trading range for the next couple months. The bottom of the range should be about 10% or more down from the high.<\/li><li>Because the bull trend has been so strong, there might be one or two more brief new highs before there is a 10% pullback. <\/li><li>A tight bull channel usually does not become a bear trend, without first going sideways and forming a micro double top, or a double top. The bulls will buy the 1<sup>st<\/sup> selloff, even if it is 10%.<\/li><li>The Emini might have to go sideways for many days before it goes down.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Overnight Emini Globex trading on 5-minute chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Down 3 points in the Globex market, but still in middle of yesterday&#8217;s trading range.<\/li><li>Bulls want measured move up from yesterday&#8217;s double bottom.<\/li><li>60-minute EMA was support for the past month. It is now resistance unless the bulls can break 20 points above it.<\/li><li>Bears want breakout below yesterday&#8217;s low, and 20-point measured move down, based on the height of the trading range.<\/li><li>The bulls are concerned about 3 consecutive bear days, but know a 4th one is unlikely. They will buy selloffs, especially in the final hour.<\/li><li>The bears want a 4<sup>th<\/sup> consecutive bear day, which would increase the odds that a 10% correction is underway. They will sell rallies, especially in the final hour.<\/li><li>Bears need more than a 4<sup>th<\/sup> bear day to convince traders that the market is correcting. They need a big bear day closing near its low. <\/li><li>That is unlikely, given how strong the rally on the daily chart has been.<\/li><li>Traders expect confusion and a lot of trading rang trading today. There should be at least one swing up and one swing down.<\/li><li>If there is a series of strong trend bars in the 1<sup>st<\/sup> hour in either direction, traders will look for a trend day.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Yesterday&#8217;s Emini setups<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range-680x383.png\" alt=\"Emini bear trend from the open and then trading range. 3rd consecutive bear day.\" class=\"wp-image-115168\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bear-trend-fromt-the-open-and-then-trading-range.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p class=\"caption\">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<p class=\"caption\">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<p class=\"caption\">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<h2 class=\"wp-block-heading\">EURUSD Forex market trading strategies<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">EURUSD Forex daily chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range-680x383.png\" alt=\"EURUSD Forex parabolic wedge top in 9-month trading range\" class=\"wp-image-115218\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/EURUSD-Forex-parabolic-wedge-top-in-9-month-trading-range.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Reversing down from 3<sup>rd<\/sup> leg up in tight bull channel, so parabolic wedge rally.<\/li><li>At bottom of December\/March trading range and 50% pullback.<\/li><li>Should soon get minor reversal down, for a couple weeks to around 50% pullback and April 8 low, which was the start of the wedge.<\/li><li>Bulls want Small Pullback Bull Trend to continue up to above January high.<\/li><li>Bears want resumption of 4-month bear trend.<\/li><li>9-month trading range likely to continue for at least a couple more months.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Overnight EURUSD Forex trading on 5-minute chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Sold off overnight in Trending Trading Range Day, which is a weak bear trend.<\/li><li>Trading range for 5 hours, so day traders are buying reversals up, and selling reversals down for scalp. <\/li><li>Bulls hope for higher low major trend reversal back to open of day, so that today will be High 1 buy signal bar on daily chart. <\/li><li>Bears want breakout below 5-hour trading range, and for today to close near its low.<\/li><li>Most likely will not be strong bull or bear trend today. Day traders will probably scalp all day.<\/li><li>If today closes near its low, then increased chance of lower prices for a couple weeks.<\/li><li>If today reverses up and closes near its high, bulls will expect higher prices tomorrow.<\/li><li>However, probably limited upside over next week, since 2-week pullback likely soon.  <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of today&#8217;s S&amp;P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1-680x383.png\" alt=\"Emini bull trend from open became small pullback bull trend\" class=\"wp-image-115238\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/04\/Emini-bull-trend-from-open-became-small-pullback-bull-trend-1.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p class=\"caption\">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<p class=\"caption\">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<p class=\"caption\">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<h3 class=\"wp-block-heading\">End of day summary<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Bull Trend From The Open, became Small Pullback Bull Trend. <\/li><li>Broke back above 60-minute EMA.<\/li><li>Evolved into trading range midday, as often happens.<\/li><li>Trend resumption up in final hour resulted in test of open of week. Bulls want 5<sup>th<\/sup> consecutive bull bar on weekly chart, which would be unusual.<\/li><li>On daily chart, big bull bar. But, after 3 consecutive bear days and 13-day streak of bull days, trading range likely soon.<\/li><li>Might get one or two brief new highs before 5 &#8211; 10% pullback.<\/li><li>Day after buy climax has 75% chance of at least a couple hours of sideways to down trading starting by end of 2nd hour.<\/li><\/ul>\n\n\n\n<p><em>See the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">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<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Trading Room<\/h2>\n\n\n\n<p>Traders can see the end of the day <a href=\"http:\/\/www.brookspriceaction.com\/profile.php?mode=profil&amp;sub=profile_prefer&amp;mod=0\" target=\"_blank\" rel=\"noreferrer noopener\">bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&amp;P Emini futures price action real-time throughout the day in the BrooksPriceAction.com <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a>. We offer a <a href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\" rel=\"noreferrer noopener\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Charts use Pacific Time<\/h3>\n\n\n\n<p>When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Emini and Forex Trading Update:Wednesday April 21, 2021 Pre-Open market analysis of daily chart Yesterday was the 3rd consecutive bear day. The bear bodies are getting bigger so the momentum down is increasing. These 3 bear days were caused by profit taking. Once there is profit taking in a buy climax, it usually has at [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":115164,"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-115081","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\/04\/Emini-bear-trend-from-the-open-and-then-trading-range.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\/115081","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=115081"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/115081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/115164"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=115081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=115081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=115081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}