Simple, Powerful and Effective Price Action Trading Strategies

Hey Sepramfx - It's Dale Woods*

Yes I think usdjpy is due for a mean reversion - looks more likely today after today's Asia session rejection.

Crude oil looks like it is resuming with it's downtrend...



Crude oil has been recovering after a major downtrend caused it to lose over 50% of its value.

Its only natural that we see a bullish correction after a 6 month push down. We recently discussed a swing trade setup on the level marked in the chart above -but it failed and we can see bearish activity starting to becoming more dominant now.

The charts has gone from swinging to higher highs now to lower lows the classic footprint of a bearish trend.

Now price is closing and trading under the swing level, and last session dropped a thick bodied bearish rejection candle which could see much lower prices develop.
Generally I like to see breakouts occur during the New York session for oil as thats when the serious money comes online with the Chicago mercantile exchange.

For more information about my Forex price action swing strategies visit me at www.theforexguy.com

Wow! price action makes you trade with rest of mind my GBPAUD fired up to 2.0023 there may be a strong barer here for price to pass through, but if price did pass through and close above we would be expecting a mean reversion before revamping upward.
Thanks BOSS

First of all, I really want to appreciate this guy's work. I was continuously losing in forex but now I'm practicing his strategy since 1 month on demo and earning 2x on normal lot size without wasting my too much time analyzing in front of screen. Thanks man and please keep your work up.

First post in this thread to be involved directly with you.
USDJPY is showing a bearish rejection and a bullish rejection too away from mean value. Is there any chance of reversal from here?
Momentum is upward and a trading range has been broken. Will price come to test its broken resistance?

Hi aaz,

thanks for your awesome feedback.

We are very far away from the mean on USDJPY, but you are looking to trade against a long awaited breakout. We've been watching this chart for a breakout for about 6 months in the war room - the longer consolidation churns away, the more explosive breakouts are.

I was watching for any sort of topping out price action, but nothing came of it.

The candle you are looking at is not what I would consider bearish rejection. Think of the name bearish rejection - that candle only has a small tail on the top, but the closing price of the candle was still centered with in the candle's range. It needed to close much lower and have a nice bearish body to it before we can call it bearish rejection.

This is more of a neutral candle. Before we go short against this momentum, we need a very good reason to do so. Just hang in there, the opportunity will come because I don't think this market can move too much higher without correcting first.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

Hello Dale, i have been here many times without posting. Thank you for sharing with us your way of trading.
I couldnt help it entering to say that me too was looking for a breakout on this pair but when i turnedto monthly charts i saw a picture that turned me off.
look for your self and tell me what you think pls.
I really appreciate it.

You just need to wait to see how price responds to the level. As I mentioned it my last post, this market looks over extended on the daily chart so we may see a mean reversion move before it moves higher again.

I have been trying to post the bearish breakout trap set up on GBPJPY but I keep receiving a report that I have reached the maximum number of attachments allowed per post. Did any one catch the set up I am already in it and my target is around 214.50 with my money management in place
Happy Trading

Hi sepramfx. I think Dale would call it a bullish rejection candle on GBPJPY. I am demo trading, and entered at the high of the rejection candle at 190.00. Hopefully the setup will work out, and the price will go up.

@Seatac sure DALE WOODS will call it bullish rejection candle at the close of yesterday though not before the close of yesterday because you don't know what kind of candle will close. But what I was referring to, was the fake breakout of Friday low which gives an early entry without waiting for the close of the candle. That is the Asian breakout trap. My entry was 188.90 which if you check on your chart might be your SL

Good to you all, I noticed these setups during Asian session but I could not post it on time due to bad network, but hey, thats the sweet side of trading daily time frame its still good for entry

What we have here this money is AUDUSD with a nice price action to go short
Happy Trading

Did you catch the AUDUSD sell off from the mean?

Lots of EUR weakness at the end of day close from last session...



Last session the EURUSD tried to push higher, but the push higher was rejected by the market and the daily candles closes as a bearish rejection candle pattern.

A lot of price action traders will be tempted to sell this... but I am not too keen on it to be honest.

It didn't form off any strong support or resistance levels, just in the middle of no where really. Any one who shorts this signal will be playing straight off the candlestick pattern, and not really have much else technically here to back the trade.

There has also been a breakout of the lows during the asia session which is a huge red flag for me. Usually these early breakouts end up being a massive failure.

NFP is also coming out tonight so be mindful of the pending volatility.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

The EURUSD sell signal spoken about above got a nice boost from NFP. This is a good example where you don't need to follow the news, the price action tends to hint towards which way the market wants to go for these news releases.

I understand it depends on the data, but remember price is the collected thoughts of everyone's beliefs in the markets, so if the overall out come is selling it means the market collectively thinks eurusd is bearish going into NFP.

To keep it simple, just follow the price action

Also gold got a nice shake up after NFP and it managed to break below the range containment line...



After a sell signal on the daily chart, price followed through with some nice bearish price movement - breaking the range.

Is gold about to turn into another downtrend?

There is a bit of bullish pressure going into the close of the week there, I've got a feeling the price is going to snap back up into the range and go back into sideways mode.

But if any sell signals develop there off the bottom of the old range support - I would consider shorting them. Let's wait and see what happens.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

As anticipated the gold breakout of the range was a bearish trap and we've seen the market sling shot back higher.



The clue here was price escaping the range boundaries while gaping too far from the mean. There was also signs of bullish pressure as the market escaped the range support with he daily candle closing with a bit of a tail on the bottom, and the next day also closing positive.

I see this happen a lot, and it causes price to slight shot back to the mean. I wouldn't be surprised to see the market go up and re-test the daily range highs again.


Also waiting now for a buy signal to print on the EURAUD daily chart.



EURAUD has recently pushed up passed old resistance and printed new highs for this uptrend. The bullish breakout momentum has stalled and we've gotten some bearish mean reversion signals.

These will mostly likely cause a short term move back to the mean, where I am looking at a bullish hot spot for buy signals.

Here we need to see if a previous resistance level will act as support, and at the same time - the mean value hold as dynamic support.

All we need is a nice buy signal here to seal the deal.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

Check out today's range signal on the AUDCAD



The AUDCAD just finished completing another cycle of the daily range here as bears pushed price from the range resistance to the range support.

The market has given some clear price action that the support wants to hold and the bulls are picking up control again.

Last session a strong bullish rejection candle formed with a positive close in the body. The day prior to that also showed similar price action.

We could see these setups drive price back up to the range top.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

Over the weekend break we looked into a bullish rejection candle that formed at the close of last week's trading.

This signal is in a bit of a 'dead zone' here because it is not reacting with any major levels and is floating between two others which I have marked above.

The signal does however have the support of the mean value which is angled up nicely and holding as dynamic support. The recent market momentum is also bullish so there is a good chance we could see some bullish follow-through.

It's also important to note last candle closes very positive for the day, and actually closing as a very bullish looking Inside Day - so breaks higher could trigger the next push upwards.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

New Article: FOREX AFFIRMATIONS TO START YOUR DAY & KEEP YOU VERY DISCIPLINED

The GBPUSD has been a strong bullish market this month, producing a very strong move higher without offering much in terms of correction.

Price actually managed to break above a weekly resistance level and stalled above the level. At the same time, price had broken away from the mean value and over extended itself. The price stalling at extreme prices, and the disconnect from the mean is a red hot sign the market is about to correct.

A bearish outside day "sell signal" formed at the start of this week, which was the catalyst for the mean reversion move. The lows were broken and the sell off started.
This kind of mean extension / mean reversion price action behavior occurs all the time - if you're not clued into it then you're missing out on some really lucrative price moves, and it's really basic straight forward stuff.

Now the sell off has begun, it's mostly likely we will see the selling the selling intensify and continue toward the mean.

For more information about my Forex price action swing strategies visit me www.theforexguy.com

Good day DALE WOODS did you see what I am seeing on GJ? Yesterday printed a nice price rejection candle which could take price to the North if it goes in our favor. My target is 214.50 the question is will price get there? Hummmmm only price and time will tell.
Its quite unfortunate that I could not post chart its like I am being denied of that, but I don't really know. Happy trading mates