{"id":144422,"date":"2022-02-15T06:20:00","date_gmt":"2022-02-15T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=144422"},"modified":"2022-02-15T19:24:10","modified_gmt":"2022-02-16T03:24:10","slug":"bulls-higher-low-major-trend-reversal","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/bulls-higher-low-major-trend-reversal\/","title":{"rendered":"Emini bulls higher low major trend reversal wanted"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Tuesday February 15, 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>Emini bulls higher low major trend reversal wanted. The daily chart tested the February 2 high last week and failed to break above it. <\/li><li>The bears want follow-through after February 11 and are hopeful this is a double top lower high, major trend reversal setup that will break below the January lows.<\/li><li>February 11 was a strong bear bar, and bears are hopeful this is a give-up bar that will lead to the January lows. The bulls are hopeful that February 11 is a 50% pullback of the rally from the January low, setting up a higher low major trend reversal and rally up to the January high.<\/li><li>The market had a doji close yesterday, which is a bad follow-through for the bears. Yesterday was also a bad buy signal bar for the bulls. This makes me think that the market will continue sideways.<\/li><li>So far, the Emini is up about 70 points and has triggered the buy signal above yesterday for the higher low major trend reversal and second entry buy with February 8.<\/li><li>Currently (assuming today closes as a strong bull bar), February 11 may be an exhaustion bar and 2nd leg trap, trapping bears into selling too low.<\/li><li>The bull needs to get a strong bull close today and strong follow-through to convince traders that the market is going above the February high and possibly the all-time high.<\/li><li>The bears see the overnight rally as a 50% retracement of the selloff from last week.<\/li><li>While the bulls have a higher low major trend reversal, most major trend reversals are minor and go sideways. As I stated above, if this is going to be a successful higher low major trend reversal, the bulls need to show signs of strength.<\/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 45 points in the overnight Globex session.<\/li><li>The bulls got a strong breakout during the European session.<\/li><li>The market has been in a weak channel converting into a trading range.<\/li><li>Today&#8217;s Globex rally is strong enough that traders will likely buy any selloff on the open and bet against bear breakouts.<\/li><li>Since today is likely to gap up, traders may wait for a pullback to the moving average before committing to swing trade.<\/li><li>Traders should be open to a limit order market on the open and look for either a strong breakout with follow-through, a credible bottom (wedge bottom of double bottom), or a credible top (wedge top or double top).<\/li><li>Today&#8217;s less likely outcome is a trend from the open up or down.<\/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-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day-680x383.png\" alt=\"Emini wedge bottom and double bottom bulls higher low major trend reversal in trading range day\" class=\"wp-image-144439\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Al created the SP500 Emini charts.<\/em><\/p>\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-Feb-15-2022.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-680x383.png\" alt=\"EURUSD Forex Daily Chart Strong Buy Signal and 50% Pullback.\" class=\"wp-image-144480\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/EURUSD-Feb-15-2022-2048x1152.png 2048w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The market sold off last Friday and today reached a 50% retracement of the strong bull breakout ending on February 4.<\/li><li>While the bears got a bear bar yesterday, the bar had a fairly big tail.<\/li><li>Today&#8217;s open only went five pips below yesterday&#8217;s close, which means traders were eager to buy when yesterday&#8217;s bar closed as a weak bear bar near support (50% retracement of the rally).<\/li><li>The bulls want to create a 2nd entry buy signal bar close on its high today.<\/li><li>The bull breakout ending on February 4 was strong enough that the odds favor the market will get a second leg above the February highs.<\/li><li>The bears have two decent bear bars from the past two trading days, which increases the chances of sellers above.<\/li><li>The bulls need to get a strong bull bar today to convince traders that last Friday is a 2nd leg trap, trapping bears into a bad short.<\/li><li>The bulls want a breakout above the January high and a measured move up of the bull breakout that projects to around 1.1740. Next, the bulls would want a measured move of the bull breakout of the double top (January low to January high projecting up). That target projects up to around 1.1840.<\/li><li>The bears have a credible double top with the January and February highs. While it is not likely the bears get a bear breakout below the neckline (January low), if Europe handles the possible Russian invasion of&nbsp;Ukraine poorly, that could be the catalyst for a successful bear breakout and measured move down.<\/li><li>Overall, today will be important to see how determined the bulls are to get a second entry buy closing on its high. While today&#8217;s bar looks like a strong buy signal bar, the U.S session has not started yet, which means that bears have a long time to make today as weak as possible. This means the bears will try and make today close around its midpoint and possibly far below it.<\/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-double-top-and-double-bottom-and-bull-traps-and-bear-traps.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps-680x383.png\" alt=\"Emini double top and double bottom and bull traps and bear traps\" class=\"wp-image-144496\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-double-top-and-double-bottom-and-bull-traps-and-bear-traps.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Al created the SP500 Emini charts.<\/em><\/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>Bar 1 had bad follow-through, which was a sign of trading range price action today. The bulls were disappointed by bar 3 and started giving up, leading to outside down on bar 4.<\/li><li>By the close of the first hour, the market had a move up, followed by a move down, so traders expected a trading range to continue.<\/li><li>It is important not to be too eager on a day like today. The market often gets strong bull bars at the top and strong bear bars at the bottom, and they can quickly trap traders into a bad trade. It will often be always in long at the top and only have a small second leg up before it reverses. The opposite happens when you get a strong bear bar at the bottom.<\/li><li>Traders will also pay attention to the open of the day and will bet on retracements back to the open, especially late in the day.<\/li><li>Another thing to notice is how every strong bull\/bear close had bad follow-through. This is another sign of trading range price action.<\/li><li>Overall, today is a trading range day, so it is important to avoid trading in the middle of the day&#8217;s range and look to bet on failed breakouts in the top half and the bottom half of the range.<\/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: Tuesday February 15, 2022 Emini pre-open market analysis Emini daily chart Emini bulls higher low major trend reversal wanted. The daily chart tested the February 2 high last week and failed to break above it. The bears want follow-through after February 11 and are hopeful this is a double top lower high, major [&hellip;]<\/p>\n","protected":false},"author":5460,"featured_media":144439,"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":[281,1395,60],"class_list":{"0":"post-144422","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-higher-low-major-trend-reversal","10":"tag-sp-emini","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/02\/Emini-wedge-bottom-and-double-bottom-higher-low-major-trend-reversal-in-trading-range-day.png","author_info":{"display_name":"Brad","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/brad-wolff\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/144422","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\/5460"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=144422"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/144422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/144439"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=144422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=144422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=144422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}