{"id":143661,"date":"2022-02-11T06:20:00","date_gmt":"2022-02-11T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=143661"},"modified":"2022-02-11T14:10:04","modified_gmt":"2022-02-11T22:10:04","slug":"emini-micro-double-top","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-micro-double-top\/","title":{"rendered":"Emini micro double top and double top with February 2 high"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Friday February 11, 2022<\/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>An Emini micro double top formed over the past 2 days and a double top with the February 2 high.<\/li><li>The Emini has been reversing up from a sell climax for 2 weeks. Yesterday rallied on the open, but then sold off to a new low after again testing the February 2 high. <\/li><li>While it closed near its low, it is still within an 8-day tight trading range. That means it is in Breakout Mode.<\/li><li>The bulls need a strong breakout above that February 2 high before traders will be confident that the January 4 bottom will hold.<\/li><li>I said last week that the Emini would test the February 2 high, which it did Wednesday and again yesterday. <\/li><li>I also said that the January selloff was so strong that the rally should form a lower high and then test the January low.<\/li><li>If the Emini reverses down from here, there will be a double top with the February 2 high. <\/li><li>If it breaks above that high and then reverses down, there will be a wedge top where January 26 was the 1<sup>st<\/sup> top and February 2 was the 2<sup>nd<\/sup> top. <\/li><li>A reversal down would also be a lower high major trend reversal and the right shoulder of a head and shoulders top (the November 5 high as the left shoulder).<\/li><li>It is still more likely that the strong rally over the past 2 weeks will reverse down before breaking to a new high. The Emini has been in a trading range for 7 months and strong legs up and down are more likely to reverse than lead to a trend.<\/li><li>Also, there are back to back OO patterns on the monthly chart. They are consecutive attempts to reverse the strong bull trend from the pandemic low. A 2<sup>nd<\/sup> attempt has a higher probability of success.<\/li><li>At a minimum, traders should expect a break below the January low before a break above the January high. That would trigger the OO sell signal on the monthly chart. I have been saying that the selloff would probably last 2 to 3 months.<\/li><li>There is currently a 50% chance that the Emini will test the 4,000 Big Round Number before making a new high.<\/li><li>There is only a 30% chance that a selloff will reach the pre-pandemic high.<\/li><li>But even if it does, there will still likely be at least one more new high before the monthly chart could selloff for more than a few months.<\/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 4 points in the overnight Globex session.<\/li><li>Yesterday was a sell climax day. There is a 50% chance of some follow-through selling in the 1st hour.<\/li><li>There is also a 75% chance of at least a couple hours of sideways to up trading that starts by the end of the 2nd hour.<\/li><li>Today is Friday so weekly support and resistance can be important, especially in the final hour.<\/li><li>The week closed near the open of the week. This week so far is a small doji bar on the weekly chart in the middle of last week&#8217;s range.<\/li><li>Other nearby magnets are the December low, the open of the month and the December 20 low.<\/li><li>If this week is a big bear bar on the weekly chart, next week will probably be lower. <\/li><li>If this week closes on the high of the week, next week will probably be higher.<\/li><li>If it closes around where it is, the week will be more neutral. That would increase the chance of more sideways trading next week. <\/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\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down-680x383.png\" alt=\"Emini parabolic wedge and bear trend reversal below Globex high and reached measured move down. Emini micro double top and double top on daily chart.\" class=\"wp-image-144097\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-parabolic-wedge-and-bear-trend-reversal-below-Globex-high-and-reached-measured-move-down.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Above is the version that I post every day. Because I often get questions about what Daily Setups chart Encyclopedia members see, today I am including the example below of that version.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal-680x383.png\" alt=\"\" class=\"wp-image-144111\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal.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\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top-680x383.png\" alt=\"EURUSD Forex High 1 bull flag but possible double top and micro double top\" class=\"wp-image-144206\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Forex-High-1-bull-flag-but-possible-double-top-and-micro-double-top.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The EURUSD broke above the January 14\/February 4 double top yesterday, but closed below it and just above the open. It was a big doji bar and there is now a 5-day tight trading range.<\/li><li>This is not yet a successful breakout. The bulls need a couple bull bars closing near their highs and above the double top before traders will look for a measured move up from the 3-month trading range. <\/li><li>With the lack of buying over the past 6 days, many bulls might want a lower test before they become confident that the yearlong selloff has ended.<\/li><li>The bears want a reversal down from the double top to below the January low. Additionally, they want a breakout below that low and then a 300-pip measured move down to around the bottom of the 8-year trading range.<\/li><li>I have been saying that a break below the 3-month trading range was likely to fail and that the reversal up should last at least a couple months. This is still true.<\/li><li>However, if Russia invades the Ukraine and Europe handles it poorly, the EURUSD could test the bottom of the 8-year range.<\/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\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps-680x383.png\" alt=\"Emini bear trend from the open and measured move down with many bull traps\" class=\"wp-image-144226\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-bear-trend-from-the-open-and-measured-move-down-with-many-bull-traps.png 960w\" 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>The Emini broke strongly to the upside on the open, but bears sold the rally. It was a failed breakout above the EMA and a bull trap.<\/li><li>The Emini was sideways for 19 bars in a triangle, but could not break strongly above the EMA. The EMA was resistance all day. <\/li><li>The Emini was in a bear channel for the 1<sup>st<\/sup> half the day. <\/li><li>After the big, midday bear breakout, the Emini resumed its bear channel, again reversing down from every big bull bar closing near the EMA.<\/li><li>Today was the 2<sup>nd<\/sup> consecutive strong bear trend day, which is unusual. There is a 75% chance of at least a couple hours of sideways to up trading on Monday. <\/li><li>But if Russia invades this weekend, and especially if Europe has a weak response, the Emini will quickly drop to below 4000.<\/li><li>I have been saying that it should break below the January low before it breaks above the January high. This is still true.<\/li><li>Today broke below the 8-day trading range. Therefore, Monday is the follow-through bar. <\/li><li>If it is a bull bar closing near its high, traders will expect today&#8217;s bear breakout to fail.<\/li><li>If it is another bear bar, especially if it is big and closes near its low, traders will look for a measured move down below the 8-day trading range. That would be a test of the January 28 low and the January low.<\/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 on <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a> days. 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: Friday February 11, 2022 Emini pre-open market analysis Emini daily chart An Emini micro double top formed over the past 2 days and a double top with the February 2 high. The Emini has been reversing up from a sell climax for 2 weeks. Yesterday rallied on the open, but then sold off [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":144111,"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":[328,281,1396,60],"class_list":{"0":"post-143661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"tag-double-top","9":"tag-eurusd-forex","10":"tag-micro-double-top","11":"tag-sp-emini","12":"entry","13":"override","14":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/SP500-Emini-Daily-Setups-Buy-Climax-Bear-Trend-Reversal.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\/143661","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=143661"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/143661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/144111"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=143661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=143661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=143661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}