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![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/06\/Emini-trend-from-the-open-bear-trend-and-then-expanding-triangle-bottom.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 bear flag at 50% pullback, but bottom of trading range<\/h2>\n
The EURUSD daily Forex chart is stalling at the EMA after a 50% pullback from a selloff 2 weeks ago. Since this 4 day bear flag is at the bottom of a month-long trading range, the odds are against a strong selloff.<\/p>\n Since the 2 month selloff was a sell climax that tested major support, the odds favor a trading range. This is true even if the bears get a 50 – 100 pip breakout below the June low. The trading range will likely last at least another month. Therefore, traders will be looking to trade 50 – 100 pip moves up and down.<\/p>\n Currently, the odds are that there will be a rally to the June 14 sell climax high before there is more than a 100 pip break below the double bottom. If that rally is strong, the bulls will then try to continue it up to the May 14 high. Less likely, they will retrace back to the March 1 low, which is the breakout point of the bear trend.<\/p>\n While this selloff is a bear trend on the daily chart, it is only a strong minor reversal down on the weekly and monthly charts. The odds favor a 300 – 500 pip second leg down after several months of sideways trading. A rally after that 2nd leg down would then have a 40% chance of leading to a major trend reversal down on the weekly chart.<\/p>\n If the rally goes above the wedge top, traders will look for the breakout to fail. They will therefore sell a reversal down from above the overnight high.<\/p>\n Because the 3 day rally is strong, traders will buy below the low of the prior day. They know that the odds favor at least a micro double top, which means a test of the overnight high.<\/p>\n The 60 minute chart is probably entering a trading range for a few days. Day traders will therefore look to buy reversals up from 50 – 100 pip selloffs and sell reversals down from 50 – 100 pip rallies. Since the 5 minute chart has been in a 30 pip range for 5 hours, many day traders will look for 10 pip scalps while they wait for swing setups. After an early trading range, the Emini today had a weak rally in a trending trading range day. It closed near the open to form a doji day.<\/p>\n Since yesterday had a big tail below and today did not have strong selling, the odds of a strong swing down are now less. 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 has a bear bar so far today. After a 3 day strong rally, the bear body represents stalling at resistance. While it can reverse down and break far below the double bottom, the 3 bull bars indicate aggressive bulls. Consequently, there are probably more buyers than sellers below today’s low. Most bears will want at least a micro double top before they are willing to sell.<\/p>\nOvernight EURUSD Forex trading<\/h3>\n
\nThe EURUSD 60 minute Forex chart had a wedge rally over the past 3 days. That made 2 legs sideways to down likely. The 5 minute chart sold off 70 pips overnight. Since traders expect a 2nd leg sideways to down after a wedge top, the bears will sell a rally today. <\/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 an inside day and a bull doji bar on the daily chart. It is therefore a buy signal bar for tomorrow for a failed bear breakout yesterday. In addition, the stock market is seasonally bullish for the next week. However, the 3 week bear channel is tight. Therefore, the Emini might have to go sideways for a few days before the bulls can regain control. <\/p>\n
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