\nThe bear breakout was strong enough to reverse the Emini back to Always In Short, and they have a possible bear trend day, but need follow-through selling to make the bulls give up.<\/p>\n
With these big reversals up and down, the odds favor a trading range day with bulls buying selloffs and bears selling rallies, and both scalping. <\/p>\n
My thoughts before the open: Day trading strategies for possible trend resumption<\/h3>\n
The Emini is in a 3 day wedge bull flag and has a higher low. Wednesday’s rally was strong enough to have follow-through buying. The Emini had a bull breakout in the Globex session, although it has pulled back. The odds are that the bulls will try to rally today. The bears need a breakout below last week’s low (the bottom of Wednesday’s strong bull reversal). However, since the Emini is in a trading range, that breakout will need follow-through because most breakouts fail when the market is in a trading range. The day trading tip for today is to be ready for an attempt to resume up. <\/p>\n
However, a trader learning how to become a day trader must always be prepared for the exact opposite, even if it is unlikely. If there is a strong bear breakout, high probability trading will be swing trading short positions.<\/p>\n
Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
The Emini sold off sharply on the open, but reversed up from below yesterday’s low.<\/p>\n The S&P Emini futures contract sold off strongly on the open. When it sells off this much, a bull trend day is unlikely. However, a reversal day with a rally back to around the open is common, and that is what today’s price action did.<\/p>\n The bulls see today as a bull breakout of a 3 day wedge bull flag. The bears see it as a 2 day expanding triangle bear flag or wedge bear flag. The Emini is in a trading range, and trading ranges always contain both reasonable buy and sell setups. Although today sold off into the close, this is less important than the Emini being in a trading range for several days. The odds are that tomorrow will also have a lot of trading range price action as the market decides what to do with the higher time frame charts. There is about an 80% chance of a 10% pullback this year, but the bulls might be able to get one more new high and a possible buy climax first.<\/p>\n There are no strong breakouts on the 5 minute chart at the moment. <\/p>\n The EURUSD is in a bear trend on the daily chart and in a trading range on the 60 minute chart. The bulls want the overnight rally to be the start of a Major Trend Reversal, but the rally will probably just be another bull leg in the trading range.<\/p>\n The USDJPY 60 minute chart is turning down from a Lower High Major Trend Reversal. The bear breakout on the 5 minute and 60 minute charts has had bad follow-through so far. Without the follow-through selling, this is just a bear leg in the trading range. <\/p>\n The most important price action pattern on the 60 minute chart of the USDCAD is a triangle in a bull trend. It is at the top of a 3rd leg up and it will probably pull back for a day or two. At that point, it will decide whether to breakout for a measured move up or down, or instead continue more sideways and form another Major Trend Reversal top and another Double Bottom Bull Flag.<\/p>\n The candlestick pattern on the 60 minute GBPUSD chart is a broad bear channel with many pushes down. Traders learning how to trade Forex markets for a living should realize that a bear channel is usually a bull flag. It often needs a bear breakout before the bull breakout, but the odds are about 75% that there will be a swing up on the 60 minute chart this week. The best Forex trading strategy is to look for a strong bull breakout today or tomorrow, and then expect at least a couple of legs and a couple of days up.<\/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>, and a 2 day free trial<\/a> is available.<\/p>\n![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2015\/06\/00-es.png\" "\\"\\"")
<\/a><\/p>\nBest Forex trading strategies<\/h2>\n
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