![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/10\/ES-10.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 daily EURUSD Forex chart has been in a trading range for 3 months. It therefore has both a reasonable buy setup and a reasonable sell setup. The bulls rallied from a double bottom and a small wedge bottom and are likely to get a small 2nd leg sideways to up. The bears overnight broke below a 3 day bull flag. They want a strong break below the big double bottom because that would trigger a head and shoulders top sell signal.<\/p>\n Furthermore, patterns usually have fairly good symmetry. If last week’s high ends up as the right shoulder of the 3 month trading range top, the symmetry would not be good. The right shoulder began with last week’s low. This means that it has lasted only 2 weeks. The left shoulder and the head each lasted a month or more. This reduces the chances that the right shoulder is complete. Finally, the bears need a strong breakout and strong follow-through selling before traders will conclude that the daily chart has converted into a bear trend.<\/p>\n The bulls are disappoint by last night’s selloff. Yet, the small wedge bottom from 2 weeks ago and the big double bottom is still in effect. The odds therefore still favor at least a small 2nd leg sideways to up after last week’s strong 2 day rally after the buy signal.<\/p>\n The weekly chart has sold off in a tight channel for 7 weeks. It therefore will probably need at least a micro double bottom. This means that this selloff will probably test the October 6 low at some point in the next few weeks. That would also create a 20 Gap Bar buy signal. The bulls have been buying above the 20 week exponential moving average for more than 20 weeks. This means that there is a gap below the low off every bar and the moving average. Once they probably get a chance to buy at an average price, they will probably will take it. This reduces the chances of a big selloff over the next several weeks.<\/p>\n Today was a small day, and the 8th day in a tight wedge bull channel. It had a small bull breakout at the end of the 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 daily EURUSD Forex chart broke below a 3 day bull flag overnight. While good for the bears, the odds still favor at least a small leg sideways to up. However, if the bears get a strong break below the bottom of the 3 month range, it would trigger the head and shoulders top. The odds would then favor a measured move down to around the July 5 low. Since most trading range breakouts fail, the odds still favor a continuation of the trading range. <\/p>\n Weekly 20 Gap Bar buy signal<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nWhile the 5 minute chart sold off in the Asian session, it has been in a 25 pip range for the past 7 hours. The trading range is a triangle, and it is in a 4 day bear trend. The odds therefore favor at least a small bear breakout. Yet, since the daily chart still is likely to have at least a small 2nd leg up from this 4 day selloff, bulls will watch for a reversal up within the next 2 weeks.
\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’s high yesterday was within 7 ticks of a major measured move target on the daily chart (see the weekend update<\/a>). The odds still favor a test of that resistance. However, because the weekly and monthly charts are historically overbought, the odds favor a 1 – 3 month correction starting within a few weeks, and possibly this week. The 8 day wedge top might lead to a major reversal on the daily chart. However, any selloff will probably last only 1 – 3 months and become a bull flag on the weekly and monthly charts.
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