{"id":89944,"date":"2019-05-23T06:20:24","date_gmt":"2019-05-23T13:20:24","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=89944"},"modified":"2019-05-23T13:54:36","modified_gmt":"2019-05-23T20:54:36","slug":"emini-small-triangle-and-head-and-shoulder-bottom","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-small-triangle-and-head-and-shoulder-bottom\/","title":{"rendered":"Emini small triangle and head and shoulder bottom"},"content":{"rendered":"\n

Emini and Forex Trading Update:
Thursday May 23, 2019<\/h2>\n\n\n\n

I will update again at the end of the day.<\/p>\n\n\n\n

Pre-Open market analysis<\/h2>\n\n\n\n

The daily chart is at the apex of a 2 week triangle. That is a neutral pattern. Yet, there have been 7 consecutive bull bars on the daily chart. This is unusual when a chart is neutral. Consequently, today will probably close below its open.<\/p>\n\n\n\n

On the 60 minute chart, the triangle is a head and shoulders bottom. Every head and shoulders bottom is a higher low major trend reversal buy signal. It is also a trading range and there is always also a double top. Even with a big gap down today, the pattern will still be intact unless today has a big bear trend after the gap down.<\/p>\n\n\n\n

These charts are in Breakout Mode. There is a 50% chance that a successful breakout will be up and a 50% chance it will be down. Furthermore, there is a 50% chance that the 1st breakout will fail. Traders know that the tight trading range could continue for several more days before there is a breakout<\/p>\n\n\n\n

Overnight Emini Globex trading <\/h3>\n\n\n\n

The Emini is down 26 points in the Globex session. It will therefore probably have a big gap down today. <\/p>\n\n\n\n

When there is a big gap, there is a slightly increased chance of a trend day. If there is a trend, there is a slightly greater chance of it being down. <\/p>\n\n\n\n

However, a big gap leads to trading range price action for the first hour or two 80% of the time. The bears want to sell closer to the average price. They look for a wedge bear flag or a double top bear flag near the EMA for a swing down. The bulls want either a wedge bottom or a double bottom and then they buy for a swing up.<\/p>\n\n\n\n

If today does not sell off strongly after the gap down, there will still be a triangle on the daily and 60 minute charts. This is especially true if it trends up from the gap down. The head and shoulders bottom would then have a double bottom higher low for its right shoulder.<\/p>\n\n\n\n

Yesterday’s setups<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course have access to a much more detailed explanation of the swing trades for each day.<\/p>\n\n\n\n

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n\n\n\n

EURUSD Forex market trading strategies<\/h2>\n\n\n\n
\"EURUSD<\/a><\/figure>\n\n\n\n

The EURUSD daily Forex chart broke below that May 3 low overnight. That is the neck line of the May 1\/May 13 double top bear flag. The bears hope for a 100 pip measured move down. They hope for a huge breakout and an acceleration down, but that is unlikely. <\/p>\n\n\n\n

There have been many new lows in the yearlong bear channel. Each was brief and led to a 2 – 3 week bear rally. <\/p>\n\n\n\n

The bulls will again likely get a 2 – 3 rally from around the April 26 52 week low. They need a strong bull trend reversal bar or a strong reversal up for traders to conclude that the reversal has begun.<\/p>\n\n\n\n

Overnight EURUSD Forex trading<\/h3>\n\n\n\n

The EURUSD 5 minute Forex chart has been in a 20 pip tight trading range over the past 5 hours. This is not how a successful and strong breakout typically looks. Consequently, this breakout will probably not fall far nor last long before a 2 – 3 week bear rally begins.<\/p>\n\n\n\n

Since the overnight range is tight, day traders have been scalping for 10 pips. Because the chart is testing a prior low, there is an increased chance of a big bear breakout or a big reversal up. <\/p>\n\n\n\n

However, another small trading range day is more likely. Markets tend to continue to do what they have been doing until they clearly are doing something else. The overnight 5 minute chart is similar to that of most days over the past month. Day traders will assume that today will be similar as well unless there is a surprisingly big breakout up or down.<\/p>\n\n\n\n

Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups for today. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course have access to a much more detailed explanation of the swing trades for each day.<\/p>\n\n\n\n

My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n\n\n\n

End of day summary<\/h3>\n\n\n\n

The Emini sold off in a bear channel for most of the day. Traders know that 75% of bear channels have bull breakouts. The bulls got their breakout at the end of the day when there was a strong short covering rally (bears taking profits). The reversal up was from just above last week’s low. This week therefore is still an inside bar on the weekly chart.<\/p>\n\n\n\n

Today broke below the 2 week triangle. A triangle breakout has a 50% chance of failing. However, if the bulls get a big bull day tomorrow, the bear breakout will likely fail. They would have a double bottom with last week’s low and would then expect the 2 week trading range to continue.<\/p>\n\n\n\n

See the weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n

\n\n\n\n

Trading Room<\/h2>\n\n\n\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\n\n\n

\n\n\n\n

Charts use Pacific Standard Time<\/h3>\n\n\n\n

When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update<\/a> page.<\/p>\n\n\n\n

\n","protected":false},"excerpt":{"rendered":"

Emini and Forex Trading Update:Thursday May 23, 2019 I will update again at the end of the day. Pre-Open market analysis The daily chart is at the apex of a 2 week triangle. That is a neutral pattern. Yet, there have been 7 consecutive bull bars on the daily chart. This is unusual when a […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[],"class_list":{"0":"post-89944","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-market-update","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/89944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=89944"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/89944\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=89944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=89944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=89944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}