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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/08\/Emini-wedge-rally-to-new-all-time-high-then-trading-range.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. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not in a position at the moment, these entries would be logical times for him to enter.<\/p>\n
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EURUSD Forex parabolic wedge buy climax just below resistance<\/h2>\n
The EURUSD daily Forex chart rallied strongly for 3 weeks to near the top of the 4 month trading range. It has been sideways for 3 days.<\/p>\n Because the weekly chart has been in a bull trend for a year and a half, a bull breakout is more likely than a bear breakout. But the 3 week rally on the daily chart has been in a series of buy climaxes. When that happens, the bulls typically begin to take profits (\u00abexhausted bulls\u00bb). They then wait for about 10 bars and 2 sideways to down legs before buying again. <\/p>\n This is because they want to test the bears. If the bears are strong, the selloff could be more than 50%. That would allow the bulls to buy again around 1.15, which is much cheaper than today. Alternatively, the bears might not be able to drive the market down. Instead, the daily chart could go sideways. If that happens, the bulls will buy again after a sideways High 2 bull flag or a triangle.<\/p>\n The 3 week parabolic wedge buy climax has been strong and there is room to the top of the 4 month range. Therefore, there might be 1 or 2 more small legs up before there is a 10 bar sideways to down move. However, the bulls will begin to take profits above the high of prior days and the bears will sell there. Also, both will buy below the lows of prior days. Finally, both believe the moves up and down will be brief. They therefore will take quick profits. This creates a trading range.<\/p>\n <\/p>\n Here are several reasonable stop entry setups for today. I sometimes also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not in a position at the moment, these entries would be logical times for him to enter.<\/p>\n However, this selloff was strong enough to give the bears a 40% chance of closing the week and month back below the January high. The odds would still favor higher prices over the next few months. However, that would increase the chance of a 1 – 3 week pullback. 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 had a bull trend reversal 3 week ago. It is now back in its 4 month trading range. Since traders believed that this was a fair price for many months, they will probably continue to hold this belief until it is clearly wrong. Consequently, the daily chart might go sideways for several more weeks before breaking out. <\/p>\nParabolic wedge buy climax transitions into a trading range<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe bulls bought below Tuesday’s low and the bears sold above yesterday’s high. Fading breakouts is an early sign of a bull trend evolving into a trading range. The EURUSD 5 minute chart is forming smaller legs. Day traders are taking quick profits. They are looking for reversals, especially from above yesterday’s high and below yesterday’s low. Therefore, the 5 minute chart is back to a scalping market.
\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 turned down from a lower high major trend reversal but found buyers just above the 60 minute EMA. It then had a dramatic selloff from a big double top bear flag late in the day. There were some buyers below yesterday’s low and the 60 minute EMA. <\/p>\n
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