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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/03\/ES-12.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 High 2 bull flag<\/h2>\n
The EURUSD daily Forex chart has a High 2 bull flag in the middle of a 3 month trading range.<\/p>\n The chart has pulled back over the past 2 weeks and has a bull bar so far today. If today closes above its midpoint, it will be a buy signal bar for tomorrow. <\/p>\n The past 3 months formed a trading range on the daily. Once a pullback grows to 20 or more bars, the bulls have largely lost control. I then use the term \u00abtrading range\u00bb instead of \u00abpullback.\u00bb This is a neutral pattern. Since the trend leading to the range was up, there is only a slightly higher probability of a successful bull breakout. <\/p>\n However, these same few months on the daily chart created a bull flag on the weekly chart. The weekly chart is therefore bullish. The odds favor a successful upside breakout within the next month or two. If the pullback grows to 20 or more weeks, it too will become neutral, like the pattern on the daily chart. I will then call it a trading range instead of a pullback (bull flag).<\/p>\n If the bears get a successful bear breakout on the daily chart, they could get a Leg 1 = Leg 2 measured move down on to around 1.20. While bearish on the daily chart, it would still be a bull flag on the weekly chart. But, a weaker one.<\/p>\n The big problem for all traders is that 11 a.m. Wednesday’s FOMC announcement if a major catalyst. It could lead to a big move up or down. Consequently, what takes place before the report is minor. <\/p>\n Yes, the odds of a rally to above 1.25 will be higher if today closes on its high and tomorrow is a big bull day. Wednesday’s report could then lead to a huge rally to back above 1.25. <\/p>\n However, it is almost equally likely that the report will lead to a big reversal down to below 1.20. Consequently, day traders will mostly scalp until the report. The Emini gapped down and created a Small Pullback Bear Trend Day. A late rally retraced half of the early loss.<\/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 been sideways for 3 months. Like all trading ranges, the bulls look like they are about to take control, but then there is a reversal down. Once the bears look strong, the chart reverses back up.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart rallied 60 pips overnight up from below Friday’s low. In addition, there was a 15 minute bull breakout over the past hour. If the bulls can prevent this breakout from reversing, the day will close near its high. It would therefore be a good buy signal bar for a lower low double bottom with the March 9 low. The odds would favor a break above today’s high tomorrow. <\/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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\nBy gapping down, today created a 6 day island top. In addition, it triggered a sell signal on the weekly chart. The bears want follow-through selling tomorrow. But, today was the 6th consecutive bear day. That has not happened in over a year. The odds are that today’s sell climax will lead to at least a small bull day tomorrow. That simply means a close above the open. Less likely, tomorrow could be a big bull day, erasing much of today’s selling.
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