FTSE 100 Futures<\/h2>\n\n\n\nThe Monthly<\/em> FTSE chart<\/h3>\n\n\n\n![\"FTSE](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/FTSE-100-Big-Bear-Bar-Pausing-at-the-100-Month-MA.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- The FTSE 100 futures<\/a> was a big bear bar closing on its low last month so we might gap down on Monday.<\/li>
- It is the second consecutive big bear bar closing on its low so we are always in short.<\/li>
- We are pausing at the 100-month moving average (MA) which has been an area of interest for many years so we might go sideways here while traders decide.<\/li>
- For the bulls it’s 2 legs sideways to down after a 2.5-year bull trend from the COVID lows. <\/li>
- Traders expected a pullback so September could be a sell climax, a sell vacuum test of the lows where bulls step aside, knowing they can soon buy much lower.<\/li>
- The bulls want a pause bar here and another buy signal like July. A second entry buy is a High 2 and a reasonable buy setup.<\/li>
- The bulls want next month to close completely below the 20-month MA which would make a 20-bar moving average gap bar buy – a reasonable long entry in a bull trend.<\/li>
- Traders have been paying above average for many months so a chance to buy at a discount will attract buyers. It will also be a magnet for bears to take profits.<\/li>
- The bears see a strong second leg down after a trend line break and a lower low, possible major trend reversal. <\/li>
- There are multiple tight trading ranges above so they wanted to break out and get a measured move down – they have been unable to close here since Jan 2021.<\/li>
- The bears want either a big bull bar next month – too big for the bulls to risk to buy, or a small bull bar with a tail above – a bad buy signal.<\/li>
- In the past 7 years on the chart, only 4 times have there been 3 monthly bear bars in a row, so even if next month trades lower, December should be a bull bar.<\/li>
- It’s a trading range so stop entries have been rare on the monthly chart – last month being one of the few successful ones. More likely traders do the opposite – buy weakness and sell strength.<\/li>
- It’s a sell signal, but at the bottom of a trading range, it is a low-probability sell. It’s also a big bar so the stop is far away so the risk is big. Bears want a bar like March 2020 and a collapse but are unlikely to get it at the bottom of a trading range.<\/li>
- Bulls want a big reversal but after two consecutive big bear bars its a bad buy setup. It could form a more symmetrical inverse head and shoulders pattern – a cup and handle for a long-term buy – we will see over the next few months.<\/li>
- Expect sideways to down next month as longer-term buyers start to consider entering the market.<\/li><\/ul>\n\n\n\n
The Weekly<\/em> FTSE chart<\/h3>\n\n\n\n![\"FTSE](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/FTSE-100-Weekly-3-Consecutive-Bear-Bars-Sell-Climax.jpg\" "\\"\\"")
<\/a>FTSE 100 Weekly: 3 Consecutive Bear Bars, Sell Climax<\/strong>
<\/figcaption><\/figure>\n\n\n\n
<\/a><\/figure>\n\n\n\n- The FTSE 100 futures<\/a> was a big bear bar closing on its low last month so we might gap down on Monday.<\/li>
- It is the second consecutive big bear bar closing on its low so we are always in short.<\/li>
- We are pausing at the 100-month moving average (MA) which has been an area of interest for many years so we might go sideways here while traders decide.<\/li>
- For the bulls it’s 2 legs sideways to down after a 2.5-year bull trend from the COVID lows. <\/li>
- Traders expected a pullback so September could be a sell climax, a sell vacuum test of the lows where bulls step aside, knowing they can soon buy much lower.<\/li>
- The bulls want a pause bar here and another buy signal like July. A second entry buy is a High 2 and a reasonable buy setup.<\/li>
- The bulls want next month to close completely below the 20-month MA which would make a 20-bar moving average gap bar buy – a reasonable long entry in a bull trend.<\/li>
- Traders have been paying above average for many months so a chance to buy at a discount will attract buyers. It will also be a magnet for bears to take profits.<\/li>
- The bears see a strong second leg down after a trend line break and a lower low, possible major trend reversal. <\/li>
- There are multiple tight trading ranges above so they wanted to break out and get a measured move down – they have been unable to close here since Jan 2021.<\/li>
- The bears want either a big bull bar next month – too big for the bulls to risk to buy, or a small bull bar with a tail above – a bad buy signal.<\/li>
- In the past 7 years on the chart, only 4 times have there been 3 monthly bear bars in a row, so even if next month trades lower, December should be a bull bar.<\/li>
- It’s a trading range so stop entries have been rare on the monthly chart – last month being one of the few successful ones. More likely traders do the opposite – buy weakness and sell strength.<\/li>
- It’s a sell signal, but at the bottom of a trading range, it is a low-probability sell. It’s also a big bar so the stop is far away so the risk is big. Bears want a bar like March 2020 and a collapse but are unlikely to get it at the bottom of a trading range.<\/li>
- Bulls want a big reversal but after two consecutive big bear bars its a bad buy setup. It could form a more symmetrical inverse head and shoulders pattern – a cup and handle for a long-term buy – we will see over the next few months.<\/li>
- Expect sideways to down next month as longer-term buyers start to consider entering the market.<\/li><\/ul>\n\n\n\n
The Weekly<\/em> FTSE chart<\/h3>\n\n\n\n
<\/a>FTSE 100 Weekly: 3 Consecutive Bear Bars, Sell Climax<\/strong>
<\/figcaption><\/figure>\n\n\n\n