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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/02\/ES-9.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
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EURUSD in sell zone for 2nd leg down<\/h2>\n
The EURUSD daily Forex chart has rallied for 4 days. It is now around a 50% pullback. Since a 2nd leg down is likely from the wedge top, the rally should form a lower high within a few days.<\/p>\n Traders will begin to look to sell for a swing down to below the January 18 low at around 1.2200. If there is a 2nd leg down and it forms a double bottom with last week’s low, they will look to buy. This is because the 2 legs down is the minimum expectation. Once met, the bulls will be willing to buy again, hoping for a successful breakout above the January high. Yet, the chart more likely will continue in its trading for at least another month. As a result, the odds are against a big move up or down until then.<\/p>\n The selloff of the past 5 minutes traded below yesterday’s low. Since yesterday is a low probability sell signal bar, there will probably be buyers here. This is despite how strong the selloff has been. While this might be the start of the 2nd leg down, it might pause here because the sell signal bar was bad. If so, it might drift up and form a micro double top with today’s high within a few days. That would be a higher probability sell for a swing down to below 1.2200.<\/p>\n Today is an outside down day. Outside days usually do not go far below yesterday’s low. While the selloff has been very strong, the odds are that it will not go much lower. The bulls will return by the end of the day for at least 1 – 2 more days up to a micro double top with today’s high. The Emini reversed up strongly from a test of the open of the week and the 60 minute EMA. The rally was a small pullback bull trend. There was a late bear trap that led to a new high.<\/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 retraced about 50% of its 2 week selloff. It is therefore in the sell zone for a 2nd leg down after a wedge top at resistance. If instead the rally breaks above the January high, there is only a 40% chance that the breakout will be the start of a new leg up. There is a 60% chance that it would reverse down for 2 legs. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute chart just sold off 70 pips in the past 5 minutes. If the day closes in this area, it will be a sell signal bar on the daily chart for a lower high. Traders expect the 4 day rally to fail because the wedge top on the daily chart should have at least a small 2nd leg down. However, yesterday was a bull day on the daily chart. It is therefore a low probability sell signal bar. <\/p>\n
\n<\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
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\nToday was another good day for the bulls. The odds are that this rally will continue to above last week’s lower high and to around 2780. This is because January was a reasonable buy month, and 2780 is the midpoint. It is therefore the middle of the reasonable buy.. However, the rally is still likely a bull leg in a 1 – 3 month trading range. Therefore, the bears will look to sell around 2750 – 2780 for a trade down.
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