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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/08\/Emini-bear-trend-reversal-and-then-bull-trend-reversal.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from Friday (market closed 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 bull flag after parabolic wedge buy climax<\/h2>\n
The EURUSD daily Forex chart has sold off from a lower high for 6 days. It is now at the support of the EMA, the August 23 pullback low, and a 50% retracement. <\/p>\n The 2 day selloff is a parabolic wedge bear channel. This is easier to see on a 4 hour chart. Therefore, the odds are that there will be a couple legs sideways to up starting today or tomorrow.<\/p>\n Since a trading range is likely over the next couple of weeks, both the bulls and the bears will be disappointed. The bulls obviously did not like this 2 week selloff after a strong bull trend reversal. They also will be unhappy that this selloff will probably fall 50 – 150 pips further. However, the odds favor a higher low and a continuation of the trading range that began in June.<\/p>\n The candlestick on the weekly chart last week was a small bear reversal bar. Since it was a lower high at the 20 week EMA in a 7 month bear swing, it is a sell signal bar for this week. <\/p>\n By trading below its low overnight, today triggered the weekly sell signal. But, last week was only a doji. In addition, the 2 prior weeks were strong bull bars. Finally, the 7 month selloff is a big bull flag. Consequently, the 2 week selloff will more likely form a higher low than resume the bear swing.<\/p>\n However, a tight trading range late in a bear trend is usually the Final Bear Flag. As a result, a bear breakout will probably only last a day or two and then reverse up. Furthermore, the 2 week selloff is in a parabolic wedge. It therefore will likely reverse up in at least 2 legs, lasting at least a couple days. This should begin by the end of the week.<\/p>\n Since this week’s upside and downside are probably small, the odds favor a trading range on the daily chart. A trading range on the daily chart usually creates a lot of trading range trading on the smaller time frames. Consequently, day traders will look to scalp reversals. <\/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 The Emini had several big reversals today, and formed a trading range day. It reversed up from just above the January high. Since the reversal was not very strong, the Emini might have to drop below that high before the bulls will buy aggressively again. However, sometimes breakout tests like this are small, but lead to huge bull trend. An example is September 25, 2017. While unlikely, traders need to be prepared for a possible strong rally starting over the next few days.<\/p>\n Even though the daily chart is in a bull trend, most of the bars on the 5 minute chart have been within trading ranges for the past week. That is therefore likely again tomorrow. Traders will expect reversals. 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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\nI said several times last week the the parabolic wedge rally to a lower high would likely test down to the 20 day EMA, the August 23 low, and the 50% retracement. The overnight selloff is testing that support. Because a higher low is likely after the strong 3 week rally, this selloff should end between 1.1450 and the overnight low at around 1.1550.<\/p>\nMinor EURUSD Forex weekly sell signal<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart sold off 60 pips overnight. It has been in a 20 pip tall tight trading range for 5 hours. Since there is room to the August 23 low and the 2 week bear channel is tight, the odds favor lower prices. Therefore, if there is a rally today, it probably will fail within 2 days. <\/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 fell below last week’s low. While this triggered a weekly sell signal, it is a weak signal. Last week had a bull body and the weekly chart is in a tight bull channel.<\/p>\n
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