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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/05\/Emini-trending-trading-range-day-after-Israel-Embassy-opened-and-Palestenian-Middle-East-fighting..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 range between 1.18 and 1.20 after parabolic wedge sell climax<\/h2>\n
The EURUSD daily Forex chart sold off sharply over the past 2 days. Yesterday was a Low 1 sell signal bar at the resistance of the 1.20 Big Round Number. The 200 pip rally was big enough to create confusion. The odds are that the chart will go sideways for a few days.<\/p>\n The next support below last week’s low is the December 12 low of 1.1717. If today’s selloff continues to that level over the next few days, the odds favor at 200 – 300 pip rally from there. <\/p>\n Can the daily chart continue down to the November 7 low of 1.1553 without another bounce? That is unlikely because the parabolic wedge sell climax is telling us that the bears are probably exhausted. Therefore a trading range between 1.18 and 1.20 is likely over the next few weeks.<\/p>\n Ten bars is about an hour. Even if the bears sell again after a 1 hour 20 – 30 pip bounce, there is support at last week’s low and the 1.18 Big Round Number. Therefore, the bulls will begin to look for reversals. Since a bull trend is unlikely immediately after a strong bear breakout, the bulls will scalp for 10 – 20 pips. <\/p>\n Since the bears know that this selling is climactic, they will soon take profits. Because a 2 – 3 hour trading range is then likely, they will sell 20 – 30 pip rallies to around the the 20 bar EMA for 10 – 30 pip scalps. The Emini sold off in a broad bear channel today. <\/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 rallied 200 pips to 1.2000. I wrote several times over the past week that the bears would sell there. I also have been saying that the selloff was extreme and climactic. Therefore, the odds favor a pause, and at least 2 legs sideways to up. The 3 day rally was strong enough to make a 2nd leg sideways to up likely. Consequently, the 2 day selloff will probably find buyers between today’s low to around last week’s low. Therefore, even if the bear trend resumption falls below last week’s low, there will probably be buyers below around 1.18. The bears will take profits and the bulls will buy, betting on a trading range after the sell climax.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 5 minute Forex chart has sold off 90 pips overnight. The selling over the past 2 hours has been very strong. It is therefore climactic. A sell climax usually means that the bears are exhausted. They therefore usually take profits and wait for at least 10 bars before selling again. <\/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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\nBy trading below yesterday’s low, the Emini triggered a sell signal on the daily chart. However, the 8 day rally was strong. Therefore, this 2 day selloff is more likely going to be a bull flag than a bear trend. The bears need follow-through selling over the next few days if they are going to convert this bull flag into a bear trend.
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