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![\"FOMC](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/05\/ES-1.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 minor parabolic wedge bottom<\/h2>\n
The EURUSD daily Forex chart fell 500 pips in a tight bear channel over the past 3 weeks. The channel has had 3 pause bar and is therefore a parabolic wedge. Furthermore, it is just above the January 9 major higher low.<\/p>\n The selling is so strong that the bulls might need a micro double bottom before the bounce will begin. So far, today is a bull inside bar in a bear trend. It is therefore a Low 1 sell signal bar. <\/p>\n But, since the selloff is climactic and near support, there are probably more buyers than sellers below today’s low. Consequently, many bears will take profits below today’s low and around 1.1900, expecting a breakout test rally to around 1.21 over the next couple of weeks. <\/p>\n Since the bear channel is tight, the odds are that the 1st reversal up will be minor. Hence, the bears will sell again around 1.2100 and the March 1 low, which will be around the 20 day EMA.<\/p>\n Bull scalpers understand this. They will therefore begin to buy below bars, looking for 50 – 100 pips profit.<\/p>\n A sell climax usually transitions into a trading range. Day trading bears will sell rallies, but they will take profits around prior lows. Swing trading bears will wait to sell a rally above 1.2100.<\/p>\n The bars and legs are big enough for bull and bear scalpers to look for 20 – 30 pips profit. Today reversed up strongly from the 2600 Big Round Number and last week’s low. It closed slightly above the open.<\/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 is in a strong breakout below a 4 month trading range. Since the selloff is in a parabolic wedge channel, it is climactic. In addition, it is just above the January 9 major higher low. Therefore, the odds favor a 150 pip bounce over the next couple of weeks to test the March 1 bottom of the early 2018 trading range.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart rallied 70 pips overnight. Since the daily chart is in a sell climax, day trading bulls will look to buy selloffs to prior lows, looking for 30 – 50 pip swings up. Swing trading bulls will buy low and look for a test of 1.2100 over the next 2 weeks.<\/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 a bull reversal day, and it is a buy signal bar for tomorrow. It is a High 2 buy setup with the April 25 low. This increases the chance of a bull trend day tomorrow. However, the odds are that this week will still be a bear bar on the weekly chart. The bulls would need several strong bull trend days next week to make the weekly chart bullish again.
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