{"id":124944,"date":"2021-11-08T06:20:00","date_gmt":"2021-11-08T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=124944"},"modified":"2021-11-09T06:33:39","modified_gmt":"2021-11-09T14:33:39","slug":"emini-parabolic-wedge-and-bull-channel","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-parabolic-wedge-and-bull-channel\/","title":{"rendered":"Emini at top of parabolic wedge and bull channel"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Monday November 8, 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>Parabolic wedge and bull channel rally (October 7, October 26, November 5) at top of bull channel (May 7, September 2, November 5). Probably 1 to 3 days of profit taking this week, possibly started on Friday.<\/li><li>Friday was a bear bar at the resistance of the top of the 2 bull channels and the 4700 Big Round Number and in an extreme buy climax.<\/li><li>It is a sell signal bar for today in a very overbought market so the profit taking could be extreme in terms of points.<\/li><li>Friday had a prominent tail below so it is a weak sell signal bar.<\/li><li>Bulls will buy the 1<sup>st<\/sup> 1- to 3-day selloff, even if it is strong. <\/li><li>Bears typically will need at least a micro double top before getting more than a 3-day pullback.<\/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 up 10+ points in the overnight Globex session.<\/li><li>Everyone sees the buy climax and the top of the channel on the daily chart, and Friday&#8217;s bear body. <\/li><li>However, the bulls have been extremely strong. They will try to overpower the bears again today and create another new high. So far, there has been a new high every day in November, and the bulls want the streak to continue.<\/li><li>However, the bear bar and the buy climax at resistance should attract some profit taking early this week. That reduces the chance of a big bull day today.<\/li><li>Furthermore, it increases the chance of sideways to down trading early this week.<\/li><li>Because the Emini is so overbought, the profit taking could be big and fast. That increases the chance of a strong bear day this week.<\/li><li>If there are early consecutive big bear bars closing near their lows, that would increase the chance of a bear trend day.<\/li><li>What about a strong bull trend day? That is less likely, given that Friday stopped at the resistance of both channels on the daily chart.<\/li><li>The gap on Friday was huge, and the selloff was strong. Big Up, Big Down creates Big Confusion. That increases the chance of trading range trading for a day or two.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Friday&#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\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax-680x383.png\" alt=\"Emini Low 2 top and double top lower high major trend reversal and then parabolic wedge and bull channel sell climax\" class=\"wp-image-125170\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-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 Friday. 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\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend-680x383.png\" alt=\"EURUSD Forex lower low double bottom in bear trend\" class=\"wp-image-125296\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/EURUSD-Forex-lower-low-double-bottom-in-bear-trend.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Failed break below month-long trading range.<\/li><li>Lower low double bottom with October 12 low.<\/li><li>High 2 buy signal with October 29. <\/li><li>Small bull body so buy signal bar could be stronger.<\/li><li>If bulls fail to get strong reversal up in next few days, selloff should resume down to below March 9, 2020 high. That was the breakout point of last year&#8217;s rally.<\/li><li>Should rally for a month or two soon since at bottom of 15-month trading range and in middle of 7 year trading range. <\/li><li>Still more likely will dip down to 1.15 or 1.14 before turning up, but a couple big bull bars this week would make traders conclude that the reversal has begun.<\/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\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day-680x383.png\" alt=\"Emini Bear trend from the open and then trading range day\" class=\"wp-image-125309\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-trading-range-day-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Bear-trend-from-the-open-and-then-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>Daily chart has parabolic wedge and a double top. Friday was a bear bar, but it had a prominent tail below. That made it a weak sell signal bar.<\/li><li>Today was an inside day and another bear bar. It closed near its low and it is a better sell signal bar for tomorrow<\/li><li>There is now a micro double top. Also, there is a 9-bar bull micro channel, which is an extreme streak and therefore a buy climax. These factors increase the chance of a 1- to 3-day pullback this week.<\/li><li>However, any reversal down will probably be minor since the bull trend is so strong.<\/li><li>Since today&#8217;s high was below Friday&#8217;s high, it is a High 1 buy signal bar. But consecutive bear bars in a buy climax is a low probability buy setup. There will probably be more sellers than buyers above today&#8217;s high.<\/li><li>On the 5-minute chart, today was Bear Trend From The Open, but quickly converted into trading range.<\/li><li>While trading range for 1<sup>st<\/sup> 2 hours, there were also lower highs. Therefore, there was also a bear channel.<\/li><li>There was a midday reversal up, but it formed a lower high. <\/li><li>Today remained a trading range day.<\/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: Monday November 8, 2021 Emini pre-open market analysis Emini daily chart Parabolic wedge and bull channel rally (October 7, October 26, November 5) at top of bull channel (May 7, September 2, November 5). Probably 1 to 3 days of profit taking this week, possibly started on Friday. Friday was a bear bar [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":125170,"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":[239,281,1362,60],"class_list":{"0":"post-124944","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"tag-bull-channel","9":"tag-eurusd-forex","10":"tag-parabolic-wedge","11":"tag-sp-emini","12":"entry","13":"override","14":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/11\/Emini-Low-2-top-and-double-top-lower-high-major-trend-reversal-and-then-parabolic-wedge-sell-climax.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\/124944","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=124944"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/124944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/125170"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=124944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=124944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=124944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}