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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/11\/Emini-wedge-bottom-and-wedge-top-in-trading-range-day-1.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 Forex bear flag more likely than wedge bottom<\/h2>\n
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The EURUSD daily Forex chart broke below the August\/October double bottom. Because 4 big bear days represents strong selling, at least a small 2nd leg down is likely. The bulls want the breakout to fail and they have a wedge bottom. But, after 3 big bear days, they will need at least a micro double bottom.<\/p>\n Since the 8 week bear channel is tight, the bulls will probably have to stop the selling for 2 – 3 weeks before there is a 300 pip rally. Next, they will need a micro double bottom. If they can create a good buy signal bar, traders will buy. This would be a reversal up from a yearlong wedge bull flag on the weekly chart and a month-long wedge bottom on the daily chart.<\/p>\n Traders need to remember that the momentum down over the past 2 months has been strong on the weekly chart (not shown). In addition, there is no credible bottom yet on that chart. Even though the bears have failed to get 2 big bear bars closing on their lows, the momentum continues to favor at least slightly lower prices. They still have a 40% chance of a 500 pip measured move down to 1.08 from the 6 month double top. Consequently, the bears will to sell rallies. <\/p>\n However, if the daily chart stops going down, the bulls will probably get at least a 200 pip rally over the next few weeks. If they do, they will hope that it is the start of a 1 – 2 month, 600 pip swing up to the October high. <\/p>\n But, there is resistance at the November 7 and October 16 major lower highs. Therefore, if the bulls get their reversal, the 1st rally will likely lead to a 1 – 2 month trading range. Then, several weeks from now, they could create a credible major trend reversal.<\/p>\n The bears will sell at both of those lower highs and again at the 20 day EMA. They will continue to sell until the bulls get a sustained strong reversal up. There is no sign of that yet.<\/p>\n While the bears have broken below the range, most breakouts fail. Therefore, even though they have been in control for 2 month, the bulls will probably regain control for a 200 – 300 pip leg up within a few weeks.<\/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 Today was a reversal day, but the rally retraced half of the selloff and then failed. The Big Down, Big Up, Big Down creates Big Confusion. Therefore, tomorrow will probably have a lot of trading range price action. 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>\n
\nOver the weekend, I said that the EURUSD Forex market would fall below the August\/October double bottom and test the 1.1200 Big Round Number. That is also the bottom of a channel on the weekly chart (not shown) drawn from the November 7, 2107 low and the August 15 low. Furthermore, the selloff is still a test of the top of the 2015 -2016 trading range. Consequently, if the bulls can get a reversal up within the next couple of weeks, the rally would have a 50% chance of reaching the July\/September double top at around 1.18 over the next few months. <\/p>\nMomentum down favors at least slightly lower prices<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart continued yesterday’s rally overnight. Since there is a wedge bottom on the daily chart, the bulls want a 300 pip rally to the November 7 lower high. However, the 3 day selloff has been strong. Typically the 1st reversal up only lasts 1 – 3 days before there is a test back down. Consequently, the bears will look to sell today or tomorrow, expecting at least a 50% retracement of the 2 day bounce.
\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 gapped above yesterday’s bear channel, but reversed down from the 60 minute EMA. It was a Bear Trend From The Open. It reversed up strongly to last week’s low after consecutive sell climaxes to below last year’s 2689.75 close. It also closed a gap on the daily chart. However, it sold off again into the close.<\/p>\n
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\nTrading Room<\/h4>\n
Charts use Pacific Standard Time<\/h4>\n