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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/05\/ES-6.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 bottom after parabolic wedge sell climax<\/h2>\n
The EURUSD daily Forex chart has sold off in a parabolic wedge sell climax. Since today so far is a small reversal day, it might be a minor bottom.<\/p>\n Parabolic wedge sell climaxes typically bounce after 3 – 4 legs. Consequently, the bears will probably start to take profits and bulls will begin to buy for a bounce. Resistance above is the 1.2000 Big Round Number and the 20 day EMA. The odds are that there will be a 150 – 200 pip rally to this area over the next couple of weeks. Less likely, the 1st leg up will reach the March 1 low of 1.2153 at the bottom of the 4 month trading range.<\/p>\n The selling is so strong than many bulls will want at least a micro double bottom before they buy. However, they might not get it. Instead, the daily chart is so oversold that it might rally for about a week before there is a minor pullback for the bulls to buy. <\/p>\n The bears will look to sell again near resistance. This is because a reversal up from a sell climax is usually minor. That means that there is a 70% chance that there will be a test of the sell climax low before the bulls have a reasonable chance of a major reversal (into a bull trend). <\/p>\n Since this would be a minor reversal on the daily chart, day trading bears will sell rallies on the 5 minute chart for 10 – 30 pip scalps. However, if the rally continues, the bears will conclude that it will continue up to around 1.2000. They therefore will wait to swing trade until the rally reaches resistance above. The Emini rallied in a small pullback bull trend. It stalled at the 2700 Big Round Number.<\/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 bear trend. Since the selloff has had a series of big bear bars interrupted by bull bars, it is a parabolic wedge bear channel. This is a sell climax and it is now around support. Furthermore, it has had 4 small legs down. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Globex chart rallied 70 pips overnight. There is a 50% chance that this is the start of a reversal up to 1.2000. Therefore, the bulls will buy pullbacks. Day traders will look for 10 – 30 pip scalps. Traders will hold for a test of 1.2000.<\/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 rallied in a small pullback bull trend, but stalled at the 2700 Big Round Number. It triggered daily and weekly buy signals by trading above yesterday’s and last week’s high. The bulls need follow-through buying over the next several days to make traders believe that this breakout will be successful. The next target is the April 2718.00 high. The bears need a strong reversal down, but the odds favor the bulls.
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