As such, traders are wondering if the 2-day rally is reversing down from a lower high in a bear trend (major trend reversal), or simply having a pullback. Today will give traders useful information about what to expect over the next couple of weeks.
If today turns out to be a big bear day and it closes on its low, the odds will shift back in favor of the bears. On the other hand, If today is a big bull day, traders will see last week’s reversal up as still intact. That said, should today turn out to be a small bull or bear bar, especially if it closes in the middle third, it would increase the chance of more sideways trading.
Disclaimer: 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. Buyers of both the Brooks Trading Course and 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 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.
If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.