QuoteDislikedIf this 4 hour candle closes as a bullish rejection candle, it would suggest the bearish pressure isn't there to move this market lower and in fact may end up pushing higher coming into london. I call this the asia breakout trap.
Just following up on the AUDJPY Asian breakout trap that produced a bullish rejection candle on the 4 hour charts. This breakout trap produced good follow through...
The Asia breakout trap, and breakout trap & reverse setup is something we teach in our Forex Course. But the general gist of it is - some breakouts that occur during the asia session fail and cause the market to 'slingshot' the other way when the market moves into the proceeding London and New York trading hours. This AUDJPY trade is a good example of this - but can be very tough to spot as the AUD and the JPY are both active Asia economies and can produce legitimate breakouts in the asian trading hours.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies