{"id":115589,"date":"2021-05-06T06:20:00","date_gmt":"2021-05-06T13:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=115589"},"modified":"2021-05-06T21:42:22","modified_gmt":"2021-05-07T04:42:22","slug":"emini-8-consecutive-bear-days","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-8-consecutive-bear-days\/","title":{"rendered":"Emini has 8 consecutive bear days in tight trading range"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Emini and Forex Trading Update:<br>Thursday May 6, 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 8 consecutive bear days on the daily chart. That happens only once every few years, and it is therefore climactic.<\/li><li>Since it is sideways instead of down, it is not a sell climax. It is simply a pattern that has lasted a long time and likely to end. Therefore, today or tomorrow will probably have at least a small bull body on daily chart.<\/li><li>The bear bodies are a sign of repeated profit taking, but there has not been enough to create a reversal down.<\/li><li>Tight trading range for 4 weeks so Breakout Mode.<\/li><li>Since in a bull trend, higher prices are always at least slightly more likely than a strong reversal down.<\/li><li>However, the yearlong rally has been extreme, so traders should expect a 10% correction this summer.<\/li><li>On 60-minute chart, the 4-week trading range is a head and shoulders top. But a major top only has a 40% chance of leading to a bear trend. Sideways or up are slightly more likely. <\/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>Up 1 point in the Globex session so probably will open within yesterday&#8217;s range.<\/li><li>If gaps down, gap will be small, and small gaps usually close in 1st hour.<\/li><li>Trading range for 4 weeks, and most days have had at least one swing up and one swing down. Day traders will expect reversals again today.<\/li><li>If there is a series of strong trend bars in the 1<sup>st<\/sup> hour, then might get strong trend day. Trading range day is more likely.<\/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\/05\/Emini-trading-range-but-closed-near-low.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low-680x383.png\" alt=\"Emini trading range but closed near low. Now 8 consecutive bear days on daily chart.\" class=\"wp-image-115744\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low.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\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag-680x383.png\" alt=\"\" class=\"wp-image-115762\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-wedge-and-double-bottom-bull-flag.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Turning up from 4-day micro wedge and double bottom bull flag (with April 22 low).<\/li><li>After consecutive wedge tops, should get 2<sup>nd<\/sup> leg sideways to down, and it should start within a few days.<\/li><li>Traders expect double top bear flag with May 3 high, or a double top with April 29 high. <\/li><li>If bulls get breakout above April 29 high, still in 9-month trading range, which should continue for at least a couple more months.<\/li><li>Traders will look for reversal down from wedge top (1<sup>st<\/sup> 2 legs up were March 18 high and April 29 highs), which would be a double top with the Feb 25 high.<\/li><li>2-day reversal up should reach May 3 high. Traders will then decide between double top bear flag, or continuing up to April 29 or February 25 high.  <\/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>Strong breakout to far above yesterday&#8217;s high. Should reach magnet of May 3 high today or tomorrow.<\/li><li>Overnight bull trend has been strong so day traders have only been buying.<\/li><li>Near top of 4-day trading range, so bulls will start to take profits. Overnight rally should then evolve into trading range.<\/li><li>Once there has been 20-pip pullback, day traders will expect a trading range, and they will begin to sell for scalps. <\/li><li>Even if there is a trading range, the odds of a resumption up will be greater than of a reversal down, so easier to make money buying reversals up from bottom of range, than selling reversals down.  <\/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\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move-680x383.png\" alt=\"Emini wedge bottom then major bull surprise and leg 1 = leg 2 meausured move\" class=\"wp-image-115780\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-wedge-bottom-then-major-bull-surprise-and-leg-1-leg-2-meausured-move.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>1<sup>st<\/sup> bull day in 9 days.<\/li><li>Reversed up from a wedge bottom and then a higher low major trend reversal.<\/li><li>Rally was a Major Bull Surprise so increased chance of follow-through buying tomorrow, despite 4-week tight trading range.<\/li><li>Rally stopped just below yesterday&#8217;s high, so Almost Outside Up Day.<\/li><li>Reversed down to open of day in weak Small Pullback Bear Trend.<\/li><li>Reversed up strongly at the end of the day to above yesterday&#8217;s high, making today an outside up day.<\/li><li>If bulls get another strong bull day tomorrow, this could be the start of a new leg up over the next couple weeks.<\/li><li>The bears want bad follow-through tomorrow, and for the week to close below the open of the week, so that this week would be a bear bar on the weekly chart.<\/li><li>Tomorrow is Friday so weekly support and resistance can be important, especially in the final hour.<\/li><li>The most important weekly magnets are the open of the week and last week&#8217;s high, which was the all-time high.<\/li><li>Last week&#8217;s low is also a target because last week was a sell signal bar. The bears want this week to close below last week&#8217;s low. They would prefer this week to close on the low of the week, but that is probably too far below.<\/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 href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">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:Thursday May 6, 2021 Pre-Open market analysis of daily chart Yesterday was 8 consecutive bear days on the daily chart. That happens only once every few years, and it is therefore climactic. Since it is sideways instead of down, it is not a sell climax. It is simply a pattern that [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":115744,"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":[281,60,291],"class_list":{"0":"post-115589","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":"tag-tight-trading-range","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-trading-range-but-closed-near-low.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\/115589","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=115589"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/115589\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/115744"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=115589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=115589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=115589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}