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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/01\/ES-1.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 bears want a wedge rally to a double top. Yet, the 4 consecutive big bull bars are strong enough so that the bulls will buy a test of the November 27 high.<\/p>\n The bears hope that the 4 day rally is just a buy vacuum test of resistance. They see a wedge rally from the October 6 low and a double top with the September 8 high. Because the momentum up is strong, the bears will probably need at least a micro double top before they can get a reversal down from the resistance at the top of the 5 month range and at the bottom of the 15 year trading range above. Consequently, the downside risk is to around 1.1950 over the next week.<\/p>\n Because the momentum up has been strong over the past week, the bulls will scalp and swing trade. Many will wait to swing trade until after at least a couple legs down from yesterday’s high and a test below the November 27 high. Alternatively, they will wait for a strong breakout above the top of the 5 month trading trading range. <\/p>\n Since the bears know that a trading range is likely over the next few days, day traders will sell rallies for scalps. The Emini rallied from the open and formed a trend from the open bull trend. The open remained the low, which is unusual. The Emini ended with a wedge bull channel.<\/p>\n This is the 2nd day of a strong reversal up. The odds therefore favor at least slightly higher prices. However, the odds are that the 3 week tight trading range will be the Final Bull Flag on the daily chart. This means that this rally will probably get pulled back into the range within a week or two. 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 4 day rally is testing the top of the 6 month trading range, which is the bottom of a 15 year trading range. Since the 4 day rally has been strong, the bears will probably need at least a micro double top to create a reversal down. More likely, the 1st pullback will become a bull flag and the bulls will again try to get the breakout. Since the EURUSD daily chart is in a trading range, pullbacks usually fall below support. Therefore, the pullback will probably reach the November 27 high within a week.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart pulled back about 70 pips from yesterday’s high in a broad bear channel. The bulls are searching for a bottom of what they see as a pullback on the daily chart. However, the 4 day rally to resistance has been climactic. Consequently, the odds favor a trading range over the next few days. <\/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 gapped up and the open remained the low of the day. That happens only about once a year. The Trend From The Open bull trend ended with a wedge bull channel. That makes an early trading range likely tomorrow.<\/p>\n
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