![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/09\/ES-12.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 had a wedge top after a buy climax at resistance. Its 2nd leg down is breaking below the neck line of a head and shoulders top. The 1st target is a measured move down to below the beginning of the wedge. The bulls want the bear breakout to reverse up today or tomorrow, but the best they will probably get is a trading range over the next 2 months.<\/p>\n When there is a wedge top reversal, the market usually has at least 2 legs down to the beginning of the wedge. That target is the August 17 low. Furthermore, the 2nd leg down is from a lower high. As a result, the wedge top usually becomes a head and shoulders top and a lower high major trend reversal. That is what happened here. <\/p>\n The bears need more than a strong break below the neck line, which is the bottom of the 4 week trading range. They need strong follow-through selling within 2 days. If they get it, the odds go up that they will reach their minimum target below. On the other hand, if the bear breakout is followed by a bull bar within a day or two, it increases the chances that the breakout will fail. The bull would then try to get a reversal back up. Yet, even if the bulls get a breakout above the September 8 high, that breakout would probably fail. Hence, the best the bulls will probably get over the next 2 months is a trading range.<\/p>\n Yet, the rally on the weekly and monthly charts is strong. Consequently, while the selloff can be a bear trend on the daily chart, it will probably only be a bear leg in a trading range on the weekly and monthly charts. The EURUSD market is now simply deciding on the bottom of the range. Most likely, it will be just below the August 17 low. If so, the range will be about 400 pips tall. Less likely, it could extend down to the bottom of the pullback after the June 27 bull breakout. That July 5 low is about 700 pips below the September 8 high. If the bear reach that target, the trading range will probably last 3 – 6 months.<\/p>\n The EURUSD has been sideways for 3 hours. While the bears hope this trading range is a bear flag, the spike and channel bottom make it more likely a reversal pattern for a 50 pip rally. Day traders will probably mostly scalp, but they might get a 30 – 50 pip swing up today. Less likely, the bear trend will continue. The Emini sold off from yesterday’s high, but reversed up below the low of last week. It was mostly a trading range 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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\nThe EURUSD daily Forex chart had a wedge top. The rally was climactic and it tested the bottom of a 10 year trading range on the monthly. As was likely, it is now pulling back. Because the rally was so strong on the monthly chart, the current selloff will probably be minor on that chart. This means that it will probably last 2 – 3 months and become a bull flag. The bears will probably need at least a micro double top on the monthly chart before they can reverse the bull trend.<\/p>\nTargets for the bears<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe 5 minute chart sold off 80 pips overnight. Yet the selloff was in a spike and wedge channel bear trend. Since this is a sell climax, the odds are against much lower prices today. The top of the wedge channel is around 1.1830, which is a target for the bulls today or tomorrow. <\/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 again went below last week’s low, and again reversed up. Yet, both the selloff and rally were weak. It traded back down to last week’s low at the end of the day, again triggering the weekly sell signal. However, this was mostly another trading range day in the 10 day tight trading range. The Emini will continue with trading range days until there is finally a strong breakout. While there is no evidence that one is about to begin, the monthly buy climax is extreme. Consequently, the odds favor a 100 – 200 point selloff within the next 2 months. Yet, there might be one more brief new high first.
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