{"id":149387,"date":"2022-04-23T06:59:00","date_gmt":"2022-04-23T13:59:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=149387"},"modified":"2022-04-23T00:28:47","modified_gmt":"2022-04-23T07:28:47","slug":"ftse-100-low-1-sell-signal","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/ftse-100-low-1-sell-signal\/","title":{"rendered":"FTSE 100 Low 1 sell signal at top of trading range"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: FTSE 100 Futures<\/h2>\n\n\n\n<p>The&nbsp;<strong>FTSE futures <\/strong>market traded lower last week with consecutive bear bars near the top of trading range. It&#8217;s a Low 1 sell signal on the weekly and a Low 2 sell on the daily chart so we should move down next week. But the FTSE has failed to get 3 weekly bars for over 6 months so it reasonable we will reverse at some point next week so could go sideways as traders continue to scalp.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FTSE 100 Futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> FTSE chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range-680x383.png\" alt=\"Low 1 Sell Signal at the Top of a Trading Range\" class=\"wp-image-149473\" title=\"FTSE 100 Weekly - Low 1, LH MTR or Tight Trading Range\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>Low 1 Sell Signal at the Top of a Trading Range<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The <strong>FTSE 100 Weekly<\/strong> chart was a bear bar closing on its low so we might gap down on Monday.<\/li><li>It is now 2 consecutive bear bars which the FTSE has not had in 4 months since November 2021. It has not had 3 weekly bear bars in over 6 months &#8211; the bulls know this.<\/li><li>For the bulls, it\u2019s a Low 1 pullback buy signal after a 5-week tight bull channel. The bulls expect the first pullback to be minor. <\/li><li>Traders are deciding whether this is a longer-term trend resumption or a bull leg in a trading range.<\/li><li>For the bears it&#8217;s a Low 1 sell signal pullback, a possible lower high major trend reversal (LH MTR), wedge reversal near the top of a trading range.<\/li><li><strong>Did you notice it\u2019s both a Low 1 buy and a Low 1 sell?<\/strong> Think trading range, think sideways.<\/li><li>The bulls expect the pullback to have 2 legs sideways to down to the 20-week moving average (MA) where it would be a gap-bar buy signal. A High 1 or High 2 near the MA is a high probability trade in a trend. <strong>But are we in a trend?<\/strong><\/li><li>In a trading range it always looks the most bullish at the top and most bearish at the bottom forcing traders to buy high and sell low. This is the opposite of a profitable trading range strategy &#8211; Buy Low Sell High and Scalp (BLSHS).<\/li><li>The bears expect at least a measured move scalp from the April 11<sup>th<\/sup> high to below the MA and hope to reach the bottom of the March trading range but might get disappointed.<\/li><li>The bears might see this as the second leg down after the first leg in February.<\/li><li>If the bulls get the pullback to the MA with a reasonable tail on the bottom in the next few weeks, the bear scalpers will exit and look to sell higher with a double top.<\/li><li>If the bears get the follow-through selling it would be 3 bear bars in a row and likely we will test to around the March 7<sup>th<\/sup> close.<\/li><li><strong>What could disappoint both sides?<\/strong> It is still in the tight trading range we spent 9 weeks in at the start of this year. Trading ranges always look like they are breaking out but 80% of breakouts fail.<\/li><li>Is it the start of a bear trend? The bears have struggled to get consecutive bear bars for many months, they have been quick to scalp out rather than swing.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> FTSE chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2-680x383.png\" alt=\"FTSE 100 Daily - Low 2 at Top of Trading Range\" class=\"wp-image-149482\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Daily-Low-2.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><figcaption>FTSE 100 Daily &#8211; Low 2<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The <a href=\"https:\/\/www.londonstockexchange.com\/indices\/ftse-100\" rel=\"noopener\">FTSE 100<\/a> Daily reversed lower with Friday completing 2 consecutive bear bars closing on their lows so it might gap down on Monday.<\/li><li>We finished last week in the same way and it reversed up strongly so it might not be as bearish as it seems.<\/li><li>For the bulls, it\u2019s 2 legs sideways to down after a 30-bar bull trend &#8211; 20 bars above the moving average (MA). A High 1 or High 2 near the MA is a high-probability buy in a bull trend. The first MA Gap bar is likely to be bought, the bears know this.<\/li><li>The bears see a Low 2 sell at the top of a trading range. They see this as the start of the second leg down&nbsp;after a long bull trend &#8211; the first leg ending at the March lows.<\/li><li>The bulls want a reversal next week with a tail below to get the High 1, but at the top of a trading range it is a low probability trade. Trading ranges force traders to buy higher than they want and sell lower than they want.<\/li><li>The math favors the bears, selling in the top of a trading range is a high probability trade but look left at the context. How often did the bears get 3 daily bear bars? Maybe twice all year. It is more reasonable to assume we will reverse. Look at the tight trading ranges to the left.<\/li><li>The bulls will see the reversal as support for another push higher, while the bears will look for the reversal to bring another lower high. A strong close, like an outside up bar here could force bears to close as the previous trends were so strong.<\/li><li>If the bears can get a 3rd consecutive bear bar that might convince bulls to buy lower down near the 100-day MA for a double bottom High 2 buy.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: FTSE 100 Futures The&nbsp;FTSE futures market traded lower last week with consecutive bear bars near the top of trading range. It&#8217;s a Low 1 sell signal on the weekly and a Low 2 sell on the daily chart so we should move down next week. But the FTSE has failed to get 3 [&hellip;]<\/p>\n","protected":false},"author":10339,"featured_media":149473,"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":[1697,136],"tags":[1699,1393],"class_list":{"0":"post-149387","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ftse-100","8":"category-analysis","9":"tag-ftse-100","10":"tag-low-1","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/FTSE-100-Weekly-Low-1-Sell-Signal-at-the-Top-of-a-Trading-Range.png","author_info":{"display_name":"Timothy","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/timfairweathercagmail-com\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/149387","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\/10339"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=149387"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/149387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/149473"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=149387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=149387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=149387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}