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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/04\/ES-7.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 3 day rally in trading range<\/h2>\n
The EURUSD daily Forex chart has rallied for 3 days. Yet, it is in the middle of a 4 month trading range and there is no sign of a breakout. The bears want a lower high and a strong break below the April 6 low. However, the bulls want a strong breakout above the March 27 high.<\/p>\n While the bears want a double top bear flag with the April 2 high, this rally is too far above that high. Traders are paying more attention now to the March 27 major lower high. They will see a reversal down at this point more as a lower high in a broad bear channel that began on February 16. <\/p>\n The chart is obviously also in a trading range. Yet, if there is a strong break below the March 1 low, traders will say that the bear trend began with the February 16 high.<\/p>\n A trading range also is in a bull trend. If there is a strong break above the March 27 high, traders will say that the bull trend resumption began with the March 1 low. My 80% rule says that 80% of breakout attempts in trading ranges fail. Traders will continue to look for reversals until there is a clear, strong breakout above or below the 4 month range.<\/p>\n At some point there will be a pair of strong trend bars that break beyond the 4 month range. The breakout can be up or down. Once that happens, traders will switch their trading style. They will begin to hold onto positions for a 300 pip measured move.<\/p>\n However, trading ranges constantly disappoint both bulls and bears. Therefore, the overnight rally is more likely to stall today. A trading range today is more likely than a continued rally.<\/p>\n Look at the 60 minute chart. Breakouts up and down last one or 2 bars and then lead to tight ranges for 10 or more bars. That is what is likely today. Consequently, the 5 minute chart is likely to be sideways in a 30 – 50 pip range. <\/p>\n There are 2 alternatives with a lower probability. If the rally of the past hour continues, the odds of a test of the March 27 high this week go up. That is another 100 pips above. Less likely, today will reverse down 50 pips. Hence, today would be a sell signal bar on the daily chart. The odds would then favor a test of the April 6 low. This is about 100 pips below today’s low. After a big gap up, the Emini went sideways today. It is just below resistance on the daily chart.<\/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 rallied for 3 days after a failed breakout below the March 20 low. It continues to have 1 – 2 week legs up and down. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart rallied 80 pips overnight. It is breaking above the April 2 lower high. The bulls want a 150 pip measured move up. <\/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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\nThe Emini was in a trading range day today after gapping up. It is just below the top of a 3 week trading range and at the 20 day EMA. The bulls need a strong breakout and the bears want a reversal down. The odds favor a continuation of today’s range tomorrow.
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