Respected Sir! Is it Valid inside bar setup or not ? Kindly guide me. Thank You. {image}
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- #701
- Edited 12:58am Mar 16, 2016 12:10am | Edited 12:58am
Ah darn it.. would have been nice if the resistance which is also the top of the weekly inside bar was tested.. would have offered a better risk reward.
Watching it only 4H for retest on jone3's entry. Don't like the inside bar entry since it is sitting on the counter trend line. Just my way to prevent false break.
Watching it only 4H for retest on jone3's entry. Don't like the inside bar entry since it is sitting on the counter trend line. Just my way to prevent false break.
I was just walking down the beach when I got an alert from the battle station indicator that a reversal candle pattern had formed on the NZDUSD 4 hour market.
This chart was the topic of discussion in the war room today because price was testing a weekly resistance level this morning.
Now we've actually got the reversal signal which communicates the bears and now coming back into play and holding the market below resistance.
The tan box is the consolidation area the market has been ranging in, so two things could happen. The old range resistance may hold as new support, or the more likely scenario is we are going to see the market fall back in and test the bottom of the range.
The daily chart shows a very recent sharp, aggressive rally and is now very extended away from it's mean value. This over extension scenario usually is follow by very strong reversal moves as the market corrects.
Best of luck on the charts everyone.
www.theforexguy.com
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
Ah darn it.. would have been nice if the resistance which is also the top of the weekly inside bar was tested.. would have offered a better risk reward. Watching it only 4H for retest on jone3's entry. Don't like the inside bar entry since it is sitting on the counter trend line. Just my way to prevent false break. {image}
Last week was a bit crazy with the Fed speech at the start of the week, then followed by ADP and NFP to fuel plenty of volatility.
We don't have any swing trade setups going into next week, but definitely looking looking at some developing scenarios that could lead to some high grade trading opportunities.
The GBPCHF daily chart shown above, offers hot conditions for a nice bearish swing trade to form next week.
Price has broken through an important weekly level and closes decisively below it.
What we're waiting to see now, is price move back up and test that old support level and respected it as new resistance by printing a bearish reversal signal there with a lower high.
Generally, when you see these weekly levels act as swing levels with price action signals hanging off them - they can generate some really strong high return moves.
Let's see what the market offers us here next week - best of luck on the charts next week.
The Forex Guy
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
I seem to have a bullish scenario here what you think DnBPriceAct
the price held steady at 1.35000 showing price rejection
the price held steady at 1.35000 showing price rejection
I seem to have a bullish scenario here what you think DnBPriceAct the price held steady at 1.35000 showing price rejection
Ahhh there is no strong bullish reversal signal there yet, there may be a correction pending but this market is making lower highs and lower lows so I would only be really interested in selling lower highs at this stage.
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AUDUSD has been on a very aggressive uptrend the previous few weeks, but recently the market collected with a strong weekly resistance level which has remained firm and contained prices from moving higher.
Price has been stuttering up near this weekly resistance, unable to make any moves – but now we’re starting to see weakness come into the market as a lower higher is developing.
This first lower high will complete a classic head and shoulders reversal pattern, which is a big bearish structure pattern.
We were looking at this chart in the war room today, watching for 4 hour bearish signals as an ‘early bird’ warning into any potential bearish moves…
Just now I received an alert on my mobile from the MT4 Battle Station about a bearish rejection candle that has formed on the 4 hour chart.
This is a very nice signal, very aggressive bearish body, bouncing off the weekly resistance and also made a lower high.
We can see price is using this level as a swing level – old support acting as new resistance.
This could be the early warning bearish opportunity that could kick off the larger bearish pattern on the daily chart.
Good luck on the charts everyone…
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
EURGBP has been on a nice bull run the last few months, creating a 10,000 pip rally from it's lows on the weekly chart.
Recently the bulls have been using a trend line structure as a linear support level where all the counter trend corrections have been terminating.
Price has met with a strong weekly level, where sellers entered the market aggressively. The weekly candle close with a serious looking bearish body.
On the daily chart, we can see the sell off from the weekly level pressed price back into the trend line. Residual buyers were obviously waiting here - as a result 'soaking' up the bearish price action.
Price has reached a major decision point where many buyers and sellers are going to come into conflict - creating an indecision period where price goes nowhere until the victor is decided. Bulls vs Bears.
This kind of price action has created a double inside day setup, where the candle ranges cascade inside one another.
This setup is a breakout catalyst, generally the victors of the indecision period will cause the market to breakout of either the double inside day setup high or low.
I am gunning for a break to the low side, because the bulls have already made their 'move', and are probably a little exhausted at the moment.
Trends don't last for ever, and we've seen some serious weakness come into the market right at a major weekly turning point.
Looking for a break of the double inside day low - if we get the low side breakout, it will be a very bearish event, and will most likely be the catalyst for a serious breakout.
A word of caution for Monday, be vigilant about Asia session breakouts - they are notoriously deceptive. I think I will wait until the London open to assess whether this trade setup still looks viable.
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Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
We've seen the AUDJPY market spring to life the last few weeks, breaking free of it's congestion and selling into lower lows.
A very sharp, aggressive rally occurred out of the fresh lows - exploding price higher to test the previous breakout level.
The hold consolidation support level is now holding as new resistance. We can see that because we got a bearish reversal signal as the bears entered back into the market, and pushed price back lower on the re-test.
What I like about this bearish rejection candle is firstly, it has good form. The body is bearish, meaning the close price was lower than the open.
Also, it formed on top of a large rally. Notice how we've see strong bullish blue candles here all week with no correction, then all of a sudden we get the sell signal right at the top of the bullish tower.
The faster, and higher price travels in these 'straight line' moves, the better the sell opportunity we get. It allows us to 'sell high', a golden rule of Forex trading.
Very interested in trading this one next week. The volatility in this market is good at the moment, so if the bears come back in for 'their turn', we could see another sharp move down into lower lows.
An easy 6x reward on risk if a we can grab a retracement entry.
Check out more of my Swing Trading & Price Action Tips @ The Forex Guy
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
Sorry I haven't been around posting. I've been working hard to finish a new version for my custom chart generator.
Check out this breakout on gold. If it can maintain a close outside the consolidation structure, we could see the next bull run...
We’ve got an event that is occurring today on Gold, which has drawn in my attention, but first, let’s have a look what’s going on here.
The Gold market broke it’s down trending structure and quickly reverted to an aggressive bull market, causing price to recover some of its losses very quickly.
The rapid move upward was just a nice burst of volatility, but then price stalled and wasn’t making any higher highs, or lower lows.
A consolidation pattern formed as the market churned sideways.
We’ve been waiting for gold to break out of consolidation structure, and our wishes may come true today.
When the US session fired up, gold erupted higher, forcing price outside the price squeeze pattern.
If the market can remain closed outside the pattern, it could be the catalyst for the next bullish rally.
www.theforexguy.com
Check out this breakout on gold. If it can maintain a close outside the consolidation structure, we could see the next bull run...
We’ve got an event that is occurring today on Gold, which has drawn in my attention, but first, let’s have a look what’s going on here.
The Gold market broke it’s down trending structure and quickly reverted to an aggressive bull market, causing price to recover some of its losses very quickly.
The rapid move upward was just a nice burst of volatility, but then price stalled and wasn’t making any higher highs, or lower lows.
A consolidation pattern formed as the market churned sideways.
We’ve been waiting for gold to break out of consolidation structure, and our wishes may come true today.
When the US session fired up, gold erupted higher, forcing price outside the price squeeze pattern.
If the market can remain closed outside the pattern, it could be the catalyst for the next bullish rally.
www.theforexguy.com
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies