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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/09\/ES-11.png\" "\\"\\"")
<\/a><\/p>\nHere are several reasonable stop entry setups from Friday. 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 daily EURUSD Forex chart is in a triangle after forming a wedge top at the 1.2000 big round number. In addition, the triangle is a head and shoulders top. Furthermore, it is after a buy climax and at the added resistance of the bottom of the monthly trading range.<\/p>\n Once there, the bears will try to break below and create a measured moved down. More likely, the daily chart will bounce from that support and form a taller trading range. However, trading ranges have legs up and down. As a result, the rally from the August 17 low will probably fail and then test that low again. Consequently, the bears would then have a right shoulder of an even larger head an shoulders top. The breakout mode process would then start over. <\/p>\n In conclusion, as strong as the rally has been this year, the month long trading range will probably grow both in price and time. The likely minimum height will probably be 400 pips, and the duration will probably be at least another month or two. The EURUSD daily chart is now in the middle of the range. Therefore it will probably go lower before going much higher.<\/p>\n Yet, even though the selloff has been strong, it is now at the bottom of the month long trading range. Since trading ranges have inertia, most breakout attempts up and down fail. Consequently, a bounce here is more likely than a bear breakout, even though the odds favor one of these selloffs breaking below the bottom of the range. The range is a head and shoulders top. If the bears get a strong breakout, the odds would favor a measured move down to the August 17 low.<\/p>\n Since the overnight momentum is strong and the daily chart is likely to get down to below 1.1700, there is an increased chance of a bear trend day today. In addition, when a bear channel on the 5 minute chart is tight like this, usually the 1st rally will become either a bear flag or the start of a trading range. Because the chart is a support, the odds favor a bounce and then a trading range today. The Emini sold off in a parabolic wedge sell climax. In addition, by falling below last week’s low, it triggered a weekly sell signal. The sell climax was just a sell vacuum test of the August 8 high, which was a breakout point on the daily chart. After two higher low major trend reversals, the day closed above the open. It therefore was a reversal day.<\/p>\n However, the Emini has been in a tight range for 2 weeks, and there is no sign that it is about to breakout up or down. Even if they are successful and the Emini rallies to a new high, the weekly and monthly charts have buy climax. Consequently, the odds are against much higher prices. In addition, the Emini will probably fall 100 – 200 points over the next 3 months. 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 Forex market has stalled for a month at the bottom of a 7 year trading range on the monthly chart. In addition, the daily chart had a wedge top form the August 17 low. That low is now a magnet for any reversal down. The bears are likely to get there within a month or two, even if the bulls get one more new high first.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart sold off 60 pips in a tight bear channel over the past 7 hours. Since the channel is tight, the 1st reversal up will probably be minor. Therefore, the best the bulls can probably get over the next couple of hours is a trading range and not a bull trend.<\/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 collapsed down to the August 8 high, but reversed up strongly twice. This created a double bottom. Furthermore, it triggered a sell signal on the weekly chart by falling below last weeks low. The reversal up traded back above last week’s low. Yet, if it falls below the low again, it would be a 2nd entry sell signal on the weekly chart. That would have a higher probability of leading to a swing down. <\/p>\n
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