{"id":94302,"date":"2019-10-23T06:20:47","date_gmt":"2019-10-23T13:20:47","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=94302"},"modified":"2019-10-23T13:41:03","modified_gmt":"2019-10-23T20:41:03","slug":"emini-outside-down-sell-signal-bar-september-high","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-outside-down-sell-signal-bar-september-high\/","title":{"rendered":"Emini outside down sell signal bar below September high"},"content":{"rendered":"\n

Emini and Forex Trading Update:
Wednesday October 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

Yesterday was an outside down day on the daily chart and it closed near its low. It broke above a 5 day wedge top and reversed down. It is therefore a sell signal bar for a failed breakout below a wedge top. In addition, it is the 2nd lower high since the July all-time high. As a result, it is a sell signal bar for a reversal down from the top of a 4 month triangle. <\/p>\n\n\n\n

This is also a failed breakout above the 3000 Big Round Number. If the bears get a bear bar today, especially a big one, there will probably be a couple small legs down over the next week or two. An obvious target is the big gap above the October 10 high.<\/p>\n\n\n\n

If instead today is a bull inside day or a bull reversal day, today will be a buy signal bar for tomorrow. The bulls would again have about a 50% chance of a new all-time high within a few weeks.<\/p>\n\n\n\n

Today will tell us what to expect next week<\/h3>\n\n\n\n

Today is important because it will give a clue for what to expect over the next week. If today is an inside day or if it trades below yesterday’s low and reverses up, it will be a buy signal bar on the daily chart for tomorrow. Traders would then discount yesterday and assume that the rally will continue up to a new high. If there is a new high in October, there would be an outside up bar on the monthly chart.<\/p>\n\n\n\n

On the other hand, if today goes below yesterday’s low, it will trigger the sell signal. This is likely. If today is a big bear day closing on its low, the selloff will probably continue down for at least another week and close the gap at 2948.25.<\/p>\n\n\n\n

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

The Emini is down 1 point in the Globex session. The problems for both the bulls and bears are that most days over the past 2 weeks have had reversals and the chart has been sideways for 6 days. These factors reduce the chance of clarity today. Therefore, today will probably not be a big bear day closing on its low. In addition, it will probably not be a big bull day closing on its high. <\/p>\n\n\n\n

Day traders expect confusion and at least one reversal today, like most recent days. But because of the increased chance of a trend day up or down, they will be willing to swing trade if they see 2 – 3 strong trend bars up or down with no significant tails. The odds favor more trading range price action instead of a relentless trend today.<\/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 has pulled back for 3 days after a parabolic wedge rally to the 21 month bear trend line. The rally is the strongest one in over a year. Traders expect at least a small 2nd leg up after a 1 – 3 week pullback. <\/p>\n\n\n\n

However, most reversals require a micro double top. Therefore, there will probably be a test of Monday’s high before the pullback begins.<\/p>\n\n\n\n

The bears want the rally to be just another bull leg in the 21 month bear channel. But since the rally has been unusually strong, traders will buy the 1st 1 – 3 week pullback to around the EMA. Therefore, traders expect a higher low in a few weeks and then a 2nd leg sideways to up over the following several weeks. As a result, the downside over the next couple weeks is probably not lower than 1.10.<\/p>\n\n\n\n

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

The EURUSD 5 minute Forex chart traded below yesterday’s low overnight. This is now a 2 day pullback. There were buyers below yesterday’s low and the bulls so far have a small bull reversal day. But the range is small and therefore there is no energy. This reduces the chance of a trend day.<\/p>\n\n\n\n

If today closes below the open, today will be the 3rd consecutive bear bar on the daily chart. That often is the start of a leg own. But because the bars are small, the bears will probably need a close on the low to increase the chance of more selling tomorrow. <\/p>\n\n\n\n

More likely, today will close around the open. It will therefore be a small reversal day on the daily chart, making it a High 1 buy signal bar for tomorrow. But since there will probably be a micro double top within a few days, the upside over the next few days is small. With limited downside and upside, traders expect a continuation of 4 day tight trading range 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

The Emini reversed up strongly on the open from below yesterday’s low, but the day evolved into a trading range day. The bears wanted a big bear day for their entry bar on the daily chart. That would have increased the chance of filling the gap above the October 10 high.<\/p>\n\n\n\n

Instead, the day closed near its high. Because today is a 1 day pullback in a bull trend, it is a High 1 Bull Flag buy signal bar for tomorrow. It therefore erased much of yesterday’s bearishness. The Emini once again has about a 50% chance of making a new high this month or within a few weeks.<\/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

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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

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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:Wednesday October 23, 2019 I will update again at the end of the day. Pre-Open market analysis Yesterday was an outside down day on the daily chart and it closed near its low. It broke above a 5 day wedge top and reversed down. It is therefore a sell signal bar […]<\/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-94302","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\/94302","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=94302"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/94302\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=94302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=94302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=94302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}