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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/04\/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 pullback from 4 day rally<\/h2>\n
The EURUSD daily Forex chart rallied for 4 days and pulled back overnight. The bears will probably need at least a micro double top. This means that bulls will buy a 1 – 2 day selloff.<\/p>\n There is no sign of a breakout of the 4 month trading range. However, the range is constricting. It is therefore a triangle on the weekly chart. Since it is fairly tight, there will probably be a breakout within a few weeks.<\/p>\n Because the weekly chart is in a bull trend, the triangle is a bull flag. That means that the probability of a bull breakout is slightly greater. However, a triangle is a magnet. That is why the price stays in a tight range. As a result, once there is a breakout, there is usually a pullback to the triangle after 5 – 10 bars. Since the triangle is on the weekly chart, that means that the breakout will probably last about a month or two and then test the triangle again. <\/p>\n A bull breakout could lead to at trend reversal that lasts several months. This is because a triangle late in a bull trend is usually the final bull flag. Consequently, even if the rally reaches 1.30, traders will look for a reversal back down to the triangle. The entire process could take many months.<\/p>\n In the meantime, traders are taking quick profits after every 3 – 5 day leg up or down. Once there are consecutive trend bars breaking above or below the triangle, they will hold for a swing trade that could last many weeks.<\/p>\n Since the selloff on the 5 minute chart was strong, day traders will want a major reversal pattern before swing trading their longs. That would take at least a couple of hours to develop. The bulls will therefore scalp in the meantime. After a gap up and brief rally, today became a trading range day. It reversed down twice from above last week’s high.<\/p>\n The bulls will try to break above the 3 week range tomorrow. A gap up would create a 3 week island bottom. However, the bears will try for a reversal down. The probability now slightly favors the bulls. 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 pulled back after a 4 day bull leg in a 4 month trading range. The bears want a double top bear flag with the April 2 lower high. Yet, after 4 bull days, a 1 – 2 pullback is more likely. The odds favor at least a small 2nd leg up.<\/p>\nPossible Final Bull Flag<\/h4>\n
Overnight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart sold off 80 pips overnight. The bears are hoping that this is the start of a move down to below last week’s low. After a 4 day rally, it is more likely a 1 – 2 day pullback. The bulls will probably buy again around a 50% retracement, which is just below 1.23. Consequently, the odds are that the selloff will probably find buyers within 30 pips of the overnight low. Therefore, the selloff should transition into a trading range this morning. As a result, the bears will begin to take profits. Furthermore, they will sell rallies and switch to scalping.<\/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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\nToday was a trading range day. By going above last week’s high, it triggered a buy signal on the weekly chart. After selling off strongly to test the open, it reversed up from an expanding triangle bull flag. It failed a 2nd time and reversed down from an expanding triangle top.<\/p>\n
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