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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/08\/ES.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.<\/p>\n
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EURUSD Forex market trading strategies<\/h2>\n
The monthly EURUSD Forex chart has reversed up strongly for 4 bars. It is testing the bottom of the 10 year trading range that ended in 2014.<\/p>\n The daily chart is in a parabolic wedge buy climax. This usually has a bear breakout. The channel then evolves into a trading range. Therefore, that is likely here. Yet, there is no top or reversal down yet. Because the rally is extreme and a buy vacuum up to resistance, it will probably end soon. The pullback will probably last 20 or more days and have at least a couple of legs down. The result will be a trading range. The first target is prior minor higher lows, like the July 26 low. That is about 200 pips below.<\/p>\n While it is possible for the bulls to continue to create strong breakouts, the buy climax on the daily charts means that they will take profits at new highs. They will begin to buy pullbacks instead of breakouts. In addition, the bears will begin to sell above prior highs. The result is that the strong bull channel on the daily chart will convert into a trading range soon. The Emini sold off but reversed up from a higher low major trend reversal.<\/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>. We offer a 2 day free trial<\/a>.<\/p>\n
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\nThe monthly EURUSD Forex chart has had 4 consecutive big bull trend bars. This reversal up from a lower low major trend reversal is very strong. Therefore, the bears will probably need at least a micro double top before they can create a reversal down. Since that would take at least 2 more bars, the downside risk over the next 2 months is small. Yet, because the rally is at the major resistance of the bottom of a 10 year trading range, it might stall for a month or two. Additionally, the 1.2000 Big Round Number resistance is just above.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nFriday’s rally on the 5 minute chart was strong. It was therefore likely to lead to at least one more leg up. Last might’s rally met that minimum goal. Hence, the bears have the minimum that they need to begin a 200 pip pullback. The reversal down over the past 4 hours was only 50 pips. The bears need a much stronger selloff before traders believe that the pullback has begun. Yet, it was big enough to create confusion. Therefore, traders will probably switch to trading range scalping today. <\/p>\n
\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 has been in a tight range for 2 weeks. Most days have had early selloffs followed by reversals up. Today was an example. While the strong bull trends on the higher time frame charts favor higher prices, the extreme buy climax on the weekly chart make a 100 – 150 point correction likely before this rally continues much longer. However, there is no top or strong reversal down yet.
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