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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/08\/ES-9.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from Friday. I sometimes also show limit order entries and entries on the close of bars.<\/p>\n
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EURUSD Forex market trading strategies<\/h2>\n
The bull channel that began on July 5 has evolved into a trading range. Every trading range has both a reasonable buy and sell signal. The bulls see the overnight selloff as a pullback from the breakout above the wedge bull flag. The bears see it as the start of a reversal down from a double top lower high major trend reversal.<\/p>\n The 240 minute chart has been in a trading range for 2 weeks. It is therefore close to neutral. This means that the odds of a bull breakout and a measured move up to above 1.2000 are about the same as for a measured move down the the July 5 low, which was the start of the tight bull channel. <\/p>\n The weekly chart is in a tight bull channel and therefore a strong bull trend. This means that any reversal down on the 240 minute chart will be minor on the weekly chart. Consequently, even if the bears reach their target of a test of the July 5 low on the daily chart, the 300 pip reversal will simply be a bull flag on the weekly chart. Therefore the odds are that the best the weekly bears get is a trading range lasting a few months. <\/p>\n It is still more likely that any selloff will reverse back up to test the August 2 high. However, a deep minor reversal will make traders see the bears as strong. As a result, the odds of a major reversal on the daily chart after a rally back up the the August high would be 40%. There would be a 60% chance of either a continued trading range or a resumption of the bull trend.<\/p>\n The Emini gapped up and tested Thursday’s sell climax high, the low of 2 weeks ago, and the 50% pullback from last week’s selloff. It spent most of the day in a tight range at this resistance area.<\/p>\n The bears want a lower high and then a 2nd leg down from Thursday’s selloff. The Emini might go sideways for even 2 months before getting a 2nd leg down. That is what happened after the September 9, 2016 big one day selloff. The odds slightly favor the bears. This is in part due to the extreme buy climax on the weekly chart. Yet, a day or two of strong rallying would make the probability back to 50-50 for the bulls and bears. See the weekly update<\/a> for a discussion of the price action on the weekly candlestick chart and for what to expect going into next week.<\/p>\n Traders can see the end of the day bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n
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\nThe daily chart last week pulled back to nears its 20 day exponential moving average. Bulls bought the pullback. However, since the monthly chart is testing resistance, the bears are selling rallies. <\/p>\nMinor or major reversal?<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart has been in a 20 pip range for 5 hours. In addition, it has been in a trading range for 6 days. Furthermore, that range is within a bigger range that is still probably growing. Consequently, the odds are that swings up or down will probably only be 20 – 40 pips. In addition, the day will probably be another mostly trading range day. Hence, day traders will be looking for mostly 10 pip scalps.
\n<\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
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\nThe Emini gapped up and rallied to resistance at Thursday’s sell climax high, the 50% pullback, and the weekly sell signal bar low from 2 weeks ago. The bears want this rally to totally erase Thursday’s selloff and lead to a new high. They need more buying over the next few days.<\/p>\n
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