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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/09\/ES-3.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 EURUSD daily Forex chart bounce overnight after Monday’s 1st leg down from the wedge top. The odds are that the chart is transitioning into a trading range over the next month or two.<\/p>\n Since the pullbacks from the 2nd and 3rd tops of the wedge lasted only a couple of days, the wedge is small. Any reversal down will therefore probably be minor. This means that the best the bears can probably get is a trading range over the next few months. <\/p>\n However, if there is a strong break below the August 31 bottom of the wedge, the pullback could fall for a measured move down. That would therefore be a 50% pullback. In addition, it would be a test of the top of the 2 year trading range at around 1.1600. Yet, the odds still would favor a trading range, albeit big, rather than a bear trend.<\/p>\n Since the Emini was in a small trading range today, there were very few reasonable trades for beginners.<\/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 EURUSD daily Forex chart reversed down on Monday from a wedge top. The wedge has a good shape. In addition, it is at resistance on the monthly chart. Furthermore, the 7 month rally is in a tight bull channel and is therefore climactic. The 2nd and 3rd legs up in the wedge bull channel were strong. That increases the chances of 1 more minor new high before the daily chart transitions into a trading range. While the bull trend can continue much higher, these facts make a pullback likely over the next month or two. <\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart traded in a 30 pip range overnight. Therefore day traders are scalping. Since there is a wedge top on the daily chart, the overnight rally will probably form a lower high. This is because even a small reversal down from a wedge top usually has at least a small 2nd leg sideways to down. As a result, swing traders on the 5 minute chart will sell this rally, looking for a test of yesterday’s low. In addition, that would be a test f the 20 day exponential moving average.
\n<\/p>\nSummary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
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\nToday was the 3rd consecutive day with mostly trading range price action. It is therefore in breakout mode going into next week’s FOMC announcement.
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