{"id":116079,"date":"2021-05-24T06:20:00","date_gmt":"2021-05-24T13:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=116079"},"modified":"2021-05-24T20:42:25","modified_gmt":"2021-05-25T03:42:25","slug":"emini-double-bottom-rally","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-double-bottom-rally\/","title":{"rendered":"Emini pullback from May double bottom rally more likely than double top"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Emini and Forex Trading Update:<br>Monday May 24, 2021<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Pre-Open market analysis of daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Double bottom rally and double top since May 12, so Breakout Mode.<\/li><li>6-week trading range so Breakout Mode. <\/li><li>Bulls have slight advantage because yearlong bull trend, and reversal up after a reversal down 2 weeks ago. A 2<sup>nd<\/sup> reversal is higher probability.<\/li><li>Friday is sell signal bar for double top lower high major trend reversal.<\/li><li>Probably more buyers than sellers below Friday&#8217;s low since: the Wednesday\/Thursday rally was very strong; it broke above the May 14 high, which is the neckline for the double bottom; and, Friday was not a big bear bar closing near its low.<\/li><li>On weekly chart, last week is buy signal bar for High 1 bull flag. But it was a perfect doji and therefore a weak buy setup.<\/li><li>This is the final week of the month. The bulls want May to be the 4<sup>th<\/sup> consecutive bull bar. That means they want Friday to close above the open of the month, which could be a magnet all week.<\/li><li>The bears want a bear bar on the monthly chart, so that May will be a sell signal bar for a parabolic wedge top on the monthly chart. Traders would then be looking for a possible 2-month pullback.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Overnight Emini Globex trading on 5-minute chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The Emini is up 20+ points in the Globex session, and just below Friday&#8217;s high.<\/li><li>Today will likely gap up, and if it does, the gap will probably be small. Small gaps typically close in the 1<sup>st<\/sup> hour. <\/li><li>Bulls want breakout above Friday&#8217;s high, since Friday is a sell signal bar. That could make the bears give up, which would increase the chance of a bull trend today.<\/li><li>Daily chart is in Breakout Mode over past 2 weeks, and bulls again trying for bull breakout. Increased chance of bull trend day today.<\/li><li>Friday broke out above neckline (May 14 high) of the double bottom, but reversed down. <\/li><li>If the bears get a 2<sup>nd<\/sup> reversal down today, Emini will probably pull back for at least a couple days. Traders will watch for reversal down from around Friday&#8217;s high and then a bear trend day.<\/li><li>Odds favor the bulls on the daily chart. They want at least a bull day today, which would increase the chance of a breakout this week, and a test of the May 7 all-time high.<\/li><li>Middle of 6-week trading range and most days have had at least one reversal. Day traders will expect that again today.<\/li><li>If series of strong trend bars in either direction in 1<sup>st<\/sup> hour, then increased chance of trend day.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Friday&#8217;s Emini setups<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range-680x383.png\" alt=\"Emini bear channel and then trading range. Pullback from May double bottom rally more likely than double top\" class=\"wp-image-116230\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bear-channel-and-then-trading-range.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p class=\"caption\">Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n<p class=\"caption\">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\n\n\n<p class=\"caption\">If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">EURUSD Forex market trading strategies<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">EURUSD Forex daily chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal-680x383.png\" alt=\"EURUSD Forex micro double top and bottom and nested wedge top but no Trend reversal\" class=\"wp-image-116304\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Friday was an outside down bar.<\/li><li>It formed a micro double top with Wednesday&#8217;s high. <\/li><li>The rally to May 19 was a nested wedge. Friday is a sell signal bar for the nested wedge and for a double top with the February 25 high. <\/li><li>When there is a credible sell setup, and the market does not go down, it will probably go up.<\/li><li>5-day tight trading range so Breakout Mode.<\/li><li>Friday closed above Thursdays low, so low probability sell setup. Might be more buyers than sellers below.<\/li><li>Today so far is a bull inside day. There is a micro double bottom in the 5-day tight trading range. If today is a bull day, it will be a buy signal bar for tomorrow, especially if today closes near its high.<\/li><li>Strong bull trend since March low, so once there is a reversal down, it will probably be minor. There might be a 2-week sideways to down pullback, but bear trend not likely this week.<\/li><li>Might test down to 1.20 Big Round Number, since it is also around 50% pullback, and at bottom of wedge.<\/li><li>Bulls want breakout above January high, which is top of 2-year trading range.<\/li><li>Most trading range breakouts fail, so probably sellers above or around January high.<\/li><li>4-day tight trading range reduces chance of big move up or down today.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Overnight EURUSD Forex trading on 5-minute chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>EURUSD sold off sharply several hours ago, but reversed up just as sharply. <\/li><li>Bulls prevented today from trading below yesterday&#8217;s low, which would have triggered daily sell signal. <\/li><li>Reversal up was strong enough to make a bear trend unlikely today. <\/li><li>Sideways for 2 hours in the top half of the 5-day tight trading range. <\/li><li>Today will probably be a trading range day, and stay within the 5-day tight trading range.<\/li><li>If today breaks above Friday&#8217;s high and the top of the range, the breakout will probably not be big. Therefore, today will probably not be a big bull day.<\/li><li>Since sideways to up is likely, day traders will scalp in both directions. <\/li><li>Trend day up or down is unlikely, but if there is a series of strong trend bars, traders will switch to swing trading.<\/li><li>The bulls want today to close nears its high, which would increase the chance of a breakout above the February 25 high tomorrow.<\/li><li>The bears would like today to be a 2<sup>nd<\/sup> consecutive bear day, but the odds favor a bull day today. The bears instead will try to get today to close below the midpoint of the range, to continue the 5-day tight trading range and reduce the chance of a bull breakout. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of today&#8217;s S&amp;P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top-680x383.png\" alt=\"Emini bull trend from the open and then wedge top\" class=\"wp-image-116328\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/Emini-bull-trend-from-the-open-and-then-wedge-top.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p class=\"caption\">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. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n<p class=\"caption\">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\n\n\n<p class=\"caption\">If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">End of day summary<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Strong bull trend from the open. <\/li><li>Entered tight trading range around open of month and 4,200 Big Round Number, then trend resumption up.<\/li><li>Sold off sharply into the close to back below the open of the month, which might be magnet all week.<\/li><li>Bulls want May to close above open of month on Friday when the month ends. Bears want a bear bar on the monthly chart. <\/li><li>By going above last week&#8217;s high, triggered weekly High 1 buy signal.<\/li><li>Breaking again above May 14 neckline of double bottom.<\/li><li>Even though daily chart has been in trading range for 7 weeks, I have been saying that the bulls had a slightly higher probability of a bull breakout. Today increases that probability a little more.<\/li><\/ul>\n\n\n\n<p><em>See the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Trading Room<\/h2>\n\n\n\n<p>Traders can see the end of the day <a href=\"http:\/\/www.brookspriceaction.com\/profile.php?mode=profil&amp;sub=profile_prefer&amp;mod=0\" target=\"_blank\" rel=\"noreferrer noopener\">bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed S&amp;P Emini futures price action real-time throughout the day in the BrooksPriceAction.com <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a>. We offer a <a href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\" rel=\"noreferrer noopener\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Charts use Pacific Time<\/h3>\n\n\n\n<p>When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the <a href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Emini and Forex Trading Update:Monday May 24, 2021 Pre-Open market analysis of daily chart Double bottom rally and double top since May 12, so Breakout Mode. 6-week trading range so Breakout Mode. Bulls have slight advantage because yearlong bull trend, and reversal up after a reversal down 2 weeks ago. A 2nd reversal is higher [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":116304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[337,281,60],"class_list":{"0":"post-116079","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"tag-double-bottom","9":"tag-eurusd-forex","10":"tag-sp-emini","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/05\/EURUSD-Forex-micro-double-top-and-bottom-and-nested-wedge-top-but-no-Trend-reversal.png","author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/116079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=116079"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/116079\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/116304"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=116079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=116079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=116079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}