E-mini: Loss Of Momentum | Investing.com


Pre-open market analysis of the daily chart

Loss of momentum. Friday was a big bull bar, but it couldn't close above Thursday's high or a new all-time high. Cops not as strong as they could have been.

The top of the 9-day narrow trading range was tested on Friday.

Bears want a reversal from the double peak down, but need a bear sell signal bar before reversing down.

The streak of 13 consecutive bull bars that ended two weeks ago makes it hard for bulls to stay much higher without a 10% pullback.

Will likely enter a trading range for a couple of months soon.

Last week it was the fifth consecutive bull bar on the weekly chart, which is unusual. This increases the likelihood that this will close under the Open of the Week, which is open today.

This is the last week of April and the bulls want another month to end near its high.

Before a bar is closed, there is often a sharp up or down movement that changes the appearance of the bar after it is closed. Increased chance of surprisingly large, rapid movement towards the end of the week, especially in the last hour on Friday.

Overnight E-Mini Globex trading on 5-minute chart

Up to 10 points in the Globex session. If it opens here today it will be within the trading range that started after the second hour on Friday.

Friday was a buying peak day so there is only a 25% chance of another strong bull trend day today.

If today is a bull trending day it will likely be weaker, like a bull channel or a bull trending trading range day.

75% chance of at least a few hours sideways down-trading, starting at the end of the second hour.

With the chance of a trading range increased today, day traders will look for reversals.

Most days have at least one swing up and one swing down, even if the trading day lasts.

If a series of strong trend bars point up or down in the first hour, the likelihood of a trend day increases.

A strong bull trend day is unlikely as Friday was a buying high at the top of a two week trading range.

It was unlikely to be a big bear trend day as Friday was heavily bullish for most of the day.

E-mini setups on Fridays

Here are some useful Friday stop entry setups. I show each purchase entry with a green rectangle and each sales entry with a red rectangle. Buyers of both the Brooks Trading Course and the Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see online course / BTC Daily Setups).

My goal with these diagrams is to present an Always In perspective. If a trader tried to be in or almost always in one position all day and they are not currently in the market, these entries would be logical times for them.

If the risk is too great for your account then you should wait for lower risk trades or trade an alternative market like the Micro E-mini.


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