{"id":119348,"date":"2021-08-04T06:20:00","date_gmt":"2021-08-04T13:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=119348"},"modified":"2021-08-04T20:23:51","modified_gmt":"2021-08-05T03:23:51","slug":"emini-outside-up-bar","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-outside-up-bar\/","title":{"rendered":"Emini outside up bar ahead of August unemployment report"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Wednesday August 4, 2021<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Emini pre-open market analysis<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Emini daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>After an outside down day on Monday (traded above Friday&#8217;s high and then below its low), yesterday traded below Monday&#8217;s low and reversed up to above Monday&#8217;s high. An outside up bar.<\/li><li>It is therefore a 2<sup>nd<\/sup> consecutive outside bar. This is an OO (outside-outside) setup, which is a Breakout Mode pattern. Traders theoretically will buy above and sell below.<\/li><li>Because it is coming in a strong bull trend and on a reversal up from the bottom of an 8-day tight trading range, and yesterday closed with a big bull body, a bull breakout is more likely. <\/li><li>Since the daily chart is in Breakout Mode, the breakout could be strong and last for a few days.<\/li><li>Friday&#8217;s unemployment report is the next catalyst. The Emini might continue its tight range until the report.<\/li><li>What about a bear breakout? For over a year, the bulls have bought every strong 1- to 3-day selloff. They will continue to do that until it no longer works. That would require a big move down and probably more than just 3 days down. Until then traders will continue to expect higher prices.<\/li><li>On the monthly chart, July closed near its high, and it was the 6<sup>th<\/sup> consecutive bull bar on the monthly charts. I have been saying that August should trade above the July high. Yesterday could be the setup that leads to that new high.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Emini 5-minute chart and what to expect today<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Emini is down 9 points in the overnight Globex session.<\/li><li>Since yesterday was a Spike and Channel Bull Trend, 75% chance today will break below the bull trend line. Typically leads to trading range and often tests start of the channel, which was around 4395 yesterday.<\/li><li>25% chance of strong break above top of bull channel and then the start of another leg up.<\/li><li>With consecutive outside days on daily chart, can bears get an outside down day? Unlikely. However, they could get a bear trend day that stays within yesterday&#8217;s range. An inside day is common after an outside day. <\/li><li>There would then be an ioi (inside-outside-inside) setup on the daily chart. That would be another Breakout Mode pattern, and it would not change anything because the chart is already in Breakout Mode. <\/li><li>If today is a bear day closing on its low, it would slightly increase the chance or a bear breakout. <\/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\/08\/Emini-outside-up-day-after-sell-climax-680x383.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax-680x383.png\" alt=\"Emini outside up bar and day after sell climax. \" class=\"wp-image-119411\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-outside-up-day-after-sell-climax.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. These therefore are swing entries.<\/p>\n\n\n\n<p class=\"caption\">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.<\/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\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms-680x383.png\" alt=\"EURUSD Forex 1st leg up from consecutive wedge bottoms\" class=\"wp-image-119431\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>After consecutive wedge bottoms on July 21, odds favor 2<sup>nd<\/sup> leg sideways to up. <\/li><li>If sells off for a few days, bulls will buy the selloff, expecting a higher low and a test of the start of the bear channel. That is the June 25 major lower high.<\/li><li>Sideways for 5 days at the July 6 minor lower high so Breakout Mode. Today so far is 4<sup>th<\/sup> doji bar so neutral for 5 days. Increased chance that today will remain sideways.<\/li><li>Bears want a double top bear flag with July 6 high and a break below the July low.<\/li><li>More likely will reach June 25 lower high before breaking below July low. Traders are deciding if it needs to test down first.<\/li><li>Market might be waiting for Friday&#8217;s unemployment report.<\/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\/08\/Emini-wedge-top-and-bottom-in-trading-range-day.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day-680x383.png\" alt=\"Emini wedge top and bottom in trading range day\" class=\"wp-image-119446\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/Emini-wedge-top-and-bottom-in-trading-range-day.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\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 trap rally to EMA on open, then bear channel.<\/li><li>Reversed up from wedge bottom at 50% retracement of yesterday&#8217;s rally.<\/li><li>Reversed down from nested wedge rally to lower high.<\/li><li>Today remained a trading range day, but closed near the low.<\/li><li>Yesterday was the 2<sup>nd<\/sup> consecutive outside day. Today was an inside day. There is now an ioi on daily chart. Still in Breakout Mode ahead of Friday&#8217;s unemployment report.<\/li><li>9 consecutive days around 4,400 Big Round Number so increased chance of more sideways tomorrow.<\/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 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 <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>Trading Update: Wednesday August 4, 2021 Emini pre-open market analysis Emini daily chart After an outside down day on Monday (traded above Friday&#8217;s high and then below its low), yesterday traded below Monday&#8217;s low and reversed up to above Monday&#8217;s high. An outside up bar. It is therefore a 2nd consecutive outside bar. This is [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":119431,"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":[281,1344,60],"class_list":{"0":"post-119348","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-outside-up","10":"tag-sp-emini","11":"entry","12":"override","13":"Shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/08\/EURUSD-Forex-1st-leg-up-from-consecutive-wedge-bottoms.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\/119348","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=119348"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/119348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/119431"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=119348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=119348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=119348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}