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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/02\/ES-7.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 selloff is within 100 pips of starting a 1 week rally<\/h2>\n
The EURUSD daily chart had sold off for 7 days in a trading range that began on January 16. It should fall below the January 18 low before beginning a rally for 1 – 2 weeks to a lower high. <\/p>\n The year long bull trend is probably transitioning into a 2 – 3 month trading range. Therefore, the legs up and down will usually go beyond support and resistance before reversing. The January 18 low is a major higher low and therefore support. Since the selloff is in a tight bear channel and near support, the odds are that it will fall below this week. Since a trading range is likely, there will probably be buyers below and around the January 4 high or the January 9 low. The bulls will then create a 1 – 2 week bull leg in what will probably be a trading range. <\/p>\n Less likely, the daily chart has entered a bear trend on the daily chart. Yet, without consecutive big bear bars falling far below support, that is unlikely.<\/p>\n A tight range means that the chart is in breakout mode. The result can be a strong breakout up or down. Therefore, there is an increased chance of a quick selloff to below the January 18 major higher low. It is less than 100 pips below. But, since the daily chart is forming a trading range, the bear breakout is likely to reverse up.<\/p>\n The odds are against a strong bull trend today because of the 7 day bear micro channel. Most likely, the trading range trading of the past 3 days will continue. Furthermore, the 7 day selloff will probably fall below the January 18 low before there is a swing up for a couple of weeks. <\/p>\n The Emini closed the small gap up and then rallied from a wedge opening reversal at the moving average. The rally was weak and today was a trading range day.<\/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
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\nThe EURUSD daily Forex chart has fallen for 7 days. It traded above Friday’s high overnight in an attempt to form a double bottom with the January 18 low. However, that is the 1st pullback in 7 days. Hence it was in a bear micro channel. The bears usually sell the 1st pullback. Consequently, there are probably more sellers than buyers above Friday’s high.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute chart sold off 60 pips overnight after breaking above Friday’s high. However, the selloff lacked consecutive big bear bars. It is therefore probably just a bear leg in the 3 day, 100 pip tall tight trading range. <\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
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\nThe Emini Triggered a High 2 buy signal on the daily chart today. Friday’s buy signal bar had a small body and therefore was somewhat weak. Today was not a strong entry bar. Yet, the odds are that the Emini will work up to last Wednesday’s high this week.
\nThe bears see today as a pullback in a bear trend. They therefore will sell tomorrow below today’s low. But, last week had 2 strong reversals up. Moreover, the monthly chart is in a strong bull trend. Consequently, there are probably more buyers than sellers below today’s low.
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