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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/08\/Emini-double-top-lower-high-major-trend-reversal.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 trading range after parabolic wedge buy climax<\/h2>\n
Today is the 4th sideways day after a parabolic wedge buy climax. The rally is a bull trend reversal and a buy vacuum test of resistance at the top of the 4 month trading range.<\/p>\n The bulls might get one more small leg up to around 1.1750 and the July 31 high before there are a couple legs sideways to down. However, the rally stalled in the middle of a 4 month trading range. That is a sign that traders still believe that the trading range is the appropriate price. <\/p>\n Can the chart reverse back down from a lower high and continue a broad bear channel on the daily chart? Probably not because the reversal up was surprisingly strong and the weekly chart is still in a bull trend.<\/p>\n Can the 3 day pullback form a High 2 bull flag and lead to a strong breakout above the range over the next week? That, too, is unlikely. A parabolic buy climax reversal is usually an attempt to fix a price that was clearly too low. The price is now back to what has been normal for 4 months. Traders will probably need to trade in this range for at least a couple of weeks before they can conclude that the price is still too low.<\/p>\n That means that the pullback will probably continue down to around 1.1550 over the next week. Day traders will sell rallies and bulls buy new lows on the 5 minute and daily charts, looking for 10 – 30 pip scalps. Some legs might last 4 or more hours, but day traders will probably have a hard time making more than 30 pips on a trade over the next week. <\/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 There is a 6 week micro wedge on the weekly chart. Since this week was a bull bar that closed above the middle of its range, it is a bad sell signal for next week. Also, the weekly bull channel is tight. Therefore, any reversal down will probably be minor and last only 1 – 3 weeks. <\/p>\n However, a gap down on Tuesday (Monday is a holiday) would create a 1 bar island top on the weekly chart. That would increase the chance of a swing down to the bottom of the channel on the daily chart at around 2850. 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 rallied for 3 weeks in a parabolic wedge buy climax. While the rally is a bull trend reversal, it is also a buy vacuum test of resistance. A buy climax to resistance usually makes bulls take at least partial profits. This stops the rally and often leads to a pullback. The sideways to down move typically has at least a couple legs and often lasts about 10 bars. Therefore, the daily chart will probably be mostly sideways for at least another week. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart sold off about 50 pips overnight after yesterday’s outside down day. Since the daily chart is now probably in a tight range, day traders will look to buy reversals up from below the prior day’s low and sell reversals down from the prior day’s high. Support is at the 20 day EMA and the August 23 pullback low. <\/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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\nAfter a strong rally on the open, the Emini reversed down in an endless pullback to a new low of the day. However, the bulls then got a bull trend reversal. The week and month closed above the January high, which is good for the bulls. The odds favor higher prices.<\/p>\n
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