\n
![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/04\/ES-10.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 apex of a triangle<\/h2>\n
<\/p>\n
The EURUSD daily Forex chart pulled back for 2 days from a 4 day rally. The odds favor at least a small 2nd leg up. However, there is no sign that the 4 month trading range is about to break out. Because the chart is at the apex of a triangle, the odds favor a breakout attempt within a few weeks.<\/p>\n After 4 bull days, the odds favor at least a one day rally within a few days. However, the bears will then try to create a micro double top. <\/p>\n Because the trading range is now a triangle, the chance of a breakout within a few weeks is higher. The 1st breakout from a triangle reverses 50% of the time. When there finally is a successful breakout, in general, there is about a 50% chance that it will be up and a 50% chance it will be down. Since this triangle is a bull flag on the weekly chart, the odds are about 55% for the bulls.<\/p>\n Because the overnight trading has been in a tight range, the odds are that today will remain small. That means that day traders will scalp today, expecting a breakout next week. The Emini reversed down from above yesterday’s high and then up from below yesterday’s low. Today was therefore an outside down day. The late selloff created a bear trend resumption day. There was strong profit taking into the close.<\/p>\n Today was a big bear bar and therefore a sell signal bar for Monday. The bears see today as a failed breakout. They therefore want a reversal down to the bottom of the range. However, it was an outside down bar in a 4 day tight range. In addition, it had a big tail below. The Emini will probably continue its 4 day tight trading range. <\/p>\n It has not yet clearly rejected the bull breakout. Traders should find out next week if the bulls will succeed or the bears will get a test of the February low. 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<\/a><\/p>\n
\nThe EURUSD daily Forex chart pulled back for 2 days from a 4 day rally. The rally was strong enough so that the odds favor at least a small 2nd leg up. Yet, the overriding feature is that the chart is in a 4 month trading range. Trading ranges resist breaking out. Consequently, traders have been exiting trades in a week or less. Since there is no sign of an impending breakout, traders will continue to look for brief trades. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart has been in a 40 pip range overnight. The bulls are trying to create a double bottom with yesterday’s low. The neckline is the overnight high. Since the height is about 40 pips, that is the minimum target for a breakout up or down. A bull breakout would test the high from 2 days ago. A bear breakout would make the daily chart more neutral. A 40 pip selloff would still be a continuation of the 2 day pullback and not a bear leg. The bears need a break below the April 6 low to take temporary control.<\/p>\n
\n<\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
\n<\/a><\/p>\n
\nToday gapped up, forming a 3 week island bottom. However, the gap was small and it immediately closed. The Emini was also briefly back above last year’s close. There was a midday wedge rally that led to trend resumption down at the end of the day.<\/p>\n
\n<\/p>\n
\n