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![\"FOMC](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/09\/ES-9.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 has evolved from a wedge top to a head and shoulders top. Since every head and shoulders top is also a triangle, the chart is now in Breakout Mode. <\/p>\n The rally on the monthly chart is climactic and at major resistance (the bottom of a 13 year trading range). Therefore the odds are against a big rally from here without a pullback first. Hence, even if the bulls get a breakout above on the daily chart, the rally will probably fail and the month-long trading range will probably continue for another 1 – 2 months. Therefore bears will sell above the September 8 high.<\/p>\n In addition, the rally is in a tight channel. This means that any reversal down by the bears will probably be minor. As a result, the best the bears will probably get is a test of the August 17 major higher low (beginning of the wedge rally). Therefore, whether the bulls or bears get a successful breakout over the next week does not matter. The month-long trading range might get a little taller, but the odds are that it will continue.<\/p>\n The bulls want today to have a bull body on the daily chart. This would be a bad follow-through bar for the bears. It would therefore erase some of the bearishness of yesterday’s selloff.<\/p>\n Since the momentum down yesterday was strong, the bears still are more likely to get a breakout below the 1.1850 neck line of the head and shoulders top. Yet, if the bulls break above yesterday’s lower high on the daily chart (right shoulder), the probability will slightly favor the bulls.<\/p>\n Because the selloff is stalling at support, the odds favor a trading range day. Yet, yesterday’s momentum was strong enough so that there is an increased chance of a strong bear breakout today or tomorrow. Less likely, the bulls will get a strong rally that reverses yesterday’s selloff. After yesterday’s reversal, today was likely to be a trading range day. It was also an inside day.<\/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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\nAfter the wedge top, the bears achieved their minimum objective of 2 legs sideways to down. The pattern is now a head and shoulders top, which is always a triangle. This is therefore a breakout mode pattern. Consequently, there is a 50% chance of either a successful bull or bear breakout. Furthermore, there is a 50% chance that the initial breakout will fail and reverse.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart has been in a 30 pip rang for the past several hours. It is testing the bottom of the month-long trading range, which is the neck line of the head and shoulders top. While yesterday’s momentum down was strong, the bears need follow-through selling today or tomorrow. Without it, yesterday will simply be a brief, strong leg down in a trading range. <\/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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\nAfter yesterday’s bull reversal, today was likely to be a trading range day. Since yesterday was an outside day in a tight trading range, there was an increased chance that today would be an inside day. Because it had a bear body, it is a bear ioi sell signal bar for tomorrow. The bears want the breakout above 2500 and the August high to fail. An ioi is also a buy signal, but because it has a bear body, the odds are they will be sellers above.
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