{"id":94300,"date":"2019-10-22T06:20:05","date_gmt":"2019-10-22T13:20:05","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=94300"},"modified":"2019-10-22T14:04:44","modified_gmt":"2019-10-22T21:04:44","slug":"emini-weak-high-1-bull-flags-daily-weekly-charts","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-weak-high-1-bull-flags-daily-weekly-charts\/","title":{"rendered":"Emini weak High 1 bull flags on daily and weekly charts"},"content":{"rendered":"\n

Emini and Forex Trading Update:
Tuesday October 22, 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

Friday was a High 1 bull flag buy signal bar on the daily chart. But Friday had a bear body and it was the 3rd consecutive doji bar. That is a weak buy setup. <\/p>\n\n\n\n

Yesterday triggered the buy signal by going above Friday’s high. The Emini rallied in a weak bull channel on the 5 minute chart . Traders are deciding if it will continue up to the all-time high or pull back and then make a new high. <\/p>\n\n\n\n

While yesterday’s rally was not strong, it was relentless. Unless there is some surprise news event, there will probably be a new high in October. If so, October would then become an outside up month on the monthly chart.<\/p>\n\n\n\n

If the Emini reverses down, the 4 month trading range will then be a triangle. That does not change anything because the chart is in a trading range and therefore already in Breakout Mode.<\/p>\n\n\n\n

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

The Emini is up 5 points in the Globex session. It might gap above yesterday’s high. Small gaps typically close in the 1st hour. <\/p>\n\n\n\n

However, the daily chart is in a Small Pullback Bull Trend, and the weekly and monthly charts are in bull trends. Also, October often has a selloff that reverses up, and the rally can continue to the end of the year. The October 3 bear trap is a good candidate for the start of the yearend rally. This bullishness on the higher time frames increases the chance of bull trend days on the 5 minute chart.<\/p>\n\n\n\n

There have been 3 pullbacks on the daily chart since the October 3 bull trend reversal. Each one lasted only a day. Therefore, traders are aggressively buying brief selloffs. If there is a selloff today, they will look for a midday reversal up or for a reversal up tomorrow.<\/p>\n\n\n\n

The bears want a lower high on the daily chart. There is a small wedge top and therefore there is an increased chance of a several day pullback. However, unless the bears get a Bear Surprise Bar on the daily chart, traders expect this rally to continue to get vacuumed up to the September all-time high.<\/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 and Encyclopedia of Chart Patterns 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 rallied strongly to a bear trend line and the August 26 lower high. But the rally had 3 pushes up and the last leg was especially strong. This is a parabolic wedge buy climax and a buy vacuum test of resistance. The result typically is profit taking. <\/p>\n\n\n\n

While a 1 – 3 week pullback might be underway, most traders expect at least a micro double top first. The 2 day selloff will probably only last another day or two. Traders then expect one more brief push up to test yesterday’s high, and then possibly a micro double top that leads to a deeper pullback. But if there are 3 or more consecutive bear days, then a 2 – 3 week pullback might already be starting. <\/p>\n\n\n\n

Because the rally is the strongest one on the weekly chart since the bear trend began 21 months ago, the bulls will look to buy a 2 – 3 week pullback. Consequently, the 1st leg down will probably attract buyers around the 20 day EMA, the October 15 low, and a 50% retracement.<\/p>\n\n\n\n

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

The EURUSD 5 minute chart continued yesterday’s selloff overnight. By trading below yesterday’s low, the EURUSD now has a pullback on the daily chart. Traders know that there will probably be a micro double top before a 2 – 3 week pullback. Consequently, many will buy around yesterday’s low, hoping for a test of yesterday’s high over the next few days.<\/p>\n\n\n\n

Since the 3 week rally was unusually strong, the profit taking may continue for 2 – 3 weeks without a micro double top. As a result, there is an increased chance of a channel down on the 5 minute chart. Day traders will want to see if strong rallies on the 5 minute chart are brief and turn down from lower highs. If so, they will begin to swing trade part of their short positions.<\/p>\n\n\n\n

Because of this uncertainty about whether the pullback has begun, bulls will buy selloffs and bears will sell rallies. Both will take quick profits until the 2 – 3 week pullback is clearly underway. This should create trading range price action today.<\/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 and Encyclopedia of Chart Patterns 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

Today gapped up but formed a trading range for the 1st 5 hours. The bears got a surprisingly big bear breakout late in the day. Today was an outside down day that closed near its low. <\/p>\n\n\n\n

Today is a sell signal bar for tomorrow and the context is good for the bears. There are now 4 pushes up on the daily chart in the past 8 days. This is a wedge top or a failed breakout above a wedge top (the 3rd push up). <\/p>\n\n\n\n

But the 3 week bull channel is tight and the all-time high is a magnet just above. Therefore, the selloff will probably be minor and last a couple days. However, if the bears get a big bear bar tomorrow, traders will expect a test of the gap above the October 10 high.<\/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 Market Update<\/a> page.<\/p>\n\n\n\n

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

Emini and Forex Trading Update:Tuesday October 22, 2019 I will update again at the end of the day. Pre-Open market analysis Friday was a High 1 bull flag buy signal bar on the daily chart. But Friday had a bear body and it was the 3rd consecutive doji bar. That is a weak buy setup. […]<\/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-94300","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\/94300","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=94300"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/94300\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=94300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=94300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=94300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}