\n
![\"Wedge](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/11\/ES-5.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.<\/p>\n
<\/p>\n
EURUSD Forex market trading strategies<\/h2>\n
The daily EURUSD Forex chart has a head and shoulders top, but the wedge bull flag is more important.<\/p>\n Like all tops that have a bear breakout, there is a 60% chance that the breakout will fail. The breakout was strong enough so that the bears might get 1 more small leg down before the market reverses up. The reversal up so far looks like another small leg in the 3 week tight trading range. The bulls need a big bull trend bar before traders will conclude that the chart is reversing the October 26 bear breakout. <\/p>\n The odds are that they will get it within a few weeks. Yet, trading ranges disappoint bulls and bears. While a 50% pullback from the 3 month selloff is likely, the rally will probably stall in the middle of the range at around the October 12 major lower high. Consequently, the 4 month trading range is likely to continue for at least another 1 – 2 months.<\/p>\n Today was a small day, and therefore the late bull breakout was likely to fail. The day began with a double top bear flag, and then a wedge bull flag. It was also a 50% pullback from yesterday’s rally.<\/p>\n 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
\n<\/a><\/p>\n
\nThe EURUSD daily Forex chart has been in a trading range for 4 months. It had a breakout below the range on October 26, but there has been no follow-through selling. The trading range is also a lower high major trend reversal and a head and shoulders top. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart has been in a 40 pip range overnight, with no significant follow-through buying after yesterday’s rally. This was likely because the daily chart has been in a tight range for 3 weeks. Trading ranges have inertia, which means they are more likely to continue than to successfully break out. Consequently, the odds favor another small, scalping day.
\n<\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
\n<\/a><\/p>\n
\nToday was a small day. There was a deep pullback to a new low after a 7:20 a.m. opening rally. That bear breakout failed and the day then became a small day. It remained Always In Long. It got a late bull breakout, but could not reach the open of the week. The day was an inside day. Since it is a bull bar above the moving average, it is a buy signal bar for next week. The week was a doji week. Both the day and week are neutral going into next week.
\n<\/p>\n
\n