![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/10\/Emini-closed-below-close-of-2017-in-bear-trend-day.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely 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 currently in the market, these entries would be logical times for him to enter.<\/p>\n
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EURUSD weekly Forex chart has a double top bear flag<\/h2>\n
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The EURUSD weekly Forex chart has sold off for 5 weeks from a double top bear flag with the July 9 high. There is only a 40% chance of a break below the August 15 low and a measured move down to 1.08 (pink lines).<\/p>\n <\/p>\n The EURUSD weekly Forex chart has been in a tight trading range for 6 months. Trading ranges always have both a reasonable buy and a reasonable sell setup. However, they resist breaking out.<\/p>\n The bears have a double top bear flag with the July and September highs. There is a 40% chance of a breakout below the August 15 low neckline and then a measured move down to 1.08. That means that there is a 60% chance of a higher low above the August low or of a break below that quickly reverses up. break below that reverses up would form a wedge bull flag with the November 7 and August 15 lows on the weekly chart.<\/p>\n The 5 week selloff lacks consecutive big bear bars closing on their lows. Most of the bars overlap the prior bar. Consequently, the momentum down is weak and the selloff is more likely a bear leg in the 6 month trading range than the start of a resumption of the selloff in April and May.<\/p>\n I mentioned yesterday that there could be a nested parabolic wedge forming on the daily chart. Since yesterday\u2019s selloff was strong, the bulls will probably need a micro double bottom before they can get a 2 week, 200 pip reversal back up to the October 16 high.<\/p>\n <\/p>\n The EURUSD 5 minute Forex chart has been in a 30 pip range overnight. This is what typically happens after a sell climax like the one from yesterday. The selling stops for a day or so, and then traders decide if there will be a reversal or another leg down. Since the bulls probably will need a micro double bottom, the odds favor at least a small 2nd leg down within a few days.<\/p>\n If today is a bull trend day, which it is so far, it would represent bad follow-through selling on the daily chart. The bulls would then have a 40% chance of the 2 week rally beginning without a micro double bottom.<\/p>\n For the bears, today is a pullback from yesterday\u2019s selloff. Today therefore will be a sell signal bar for tomorrow. But, if today closes above its open, the bar on the daily chart will have a bull body. There would then probably be more buyers than sellers tomorrow below today\u2019s low.<\/p>\n Consequently, the fight today will be over the close. If it is above the open, the odds are that there will be a parabolic wedge reversal beginning within a few days. If it closes on the low, the bears will have a 60% chance of at least another day or two down.<\/p>\n Remember, there is only a 40% chance of a strong break below the August 15 low. As strong as the 2 week selloff has been, it is no stronger than any other selloff or rally for the past 6 months. During every one of them, I said that a reversal was more likely than a breakout. That is always the case in a trading range.<\/p>\n <\/p>\n Here are several reasonable stop entry setups for today. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely 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 currently in the market, these entries would be logical times for him to enter.<\/p>\n Because today was a bull inside bar, it is a buy signal bar for tomorrow. However after 3 mostly sideways days, a doji bar, and a 7 bar bear micro channel of the daily chart, sideways for a few days is more likely than a strong bull trend.<\/p>\n It is also a sell signal bar for tomorrow. Since it is a bull doji, it is a weak sell setup. Also, the daily chart is in a 7 day bear micro channel and therefore in a sell climax. This lowers the chance of much more selling this week.<\/p>\n Tomorrow is Friday and weekly magnets will be important. These include the low of 2 week’s ago, this week’s low, and, most importantly, the 2017 close.<\/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<\/a><\/p>\nOvernight EURUSD Forex trading<\/h3>\n
Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
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\nThe Emini gapped up and rallied in a bull channel. However, it reversed down in the final hour and closed below last year’s close. Since this is the 2nd consecutive day closing below that price, it increases the chances of lower prices over the next few weeks.<\/p>\n
\nTrading Room<\/h4>\n
Charts use Pacific Standard Time<\/h4>\n