Sweet [ Although i don't trade Inside Bars myself, their whole topic just honestly confuses me...as in they could signify reversal, but could also signify continuation...so i just leave them out altogether... ]
I also did not 'see' the pinbars on EURUSD (i watch the pair, but i'm not a 'fan'; i have more GBPUSD trades than EURUSD trades, personal preference). Though even if i'd have seen them, i don't think i'd have taken them. The 2nd pinbar looks more like a pinbar, but that upper wick just didnt go with my 'gut' on simple/big/obvious/slap-in-the-face (even though it may probably work out, since it's rejected an important S/R level).
-> Price managed to decisively break resistance in Jan and make new receent highs (around 1.08100)
-> Price has now pulled-back to test whether what the earlier resistance is now support. So far, the level is holding as support
-> If price decides that the level is support, we hope it will form PA showing that it will want to go long; usually this will be in the form of: (a) a big bullish engulfing bar (BUEB), or (b) a big 2-bar reversal (2BR), or (c) a big pinbar! NB: the PA clue could show up in the H4, not necessarily on the D1
[ note: i said 'usually' because (in my short experience), it could just start climbing without giving us much of a clue! ]. The long scenario is the one I'm hoping plays out.
-> ALTERNATIVELY, price could break support! Then i would be looking for it to pull-back and test if prior support will be resistance, and hopefully give PA to go short in that case.
PS: the 2pinbars you mentioned ( 1 pinbar on my chart ) are not as big+obvious as they can(should) be. Since an upswing would be a reversal of the current downward trend, it would need to be REALLY decisive (i.e REALLY BIG/OBVIOUS) to show that price wants to reverse from the strong recent downtrend
Nice observations on this pair. Price has also retraced to around the 50% Fibo level as well in this current uptrend. I don't particularly hang my hat on Fibo's but it is another tick in the box.
If a really cracking PA signal developed here, like if that PB had been a whopper I would've been looking to go long as well. As it is I am probably looking to get more bearish on this pair and have my zone highlighted to look for shorts.
Having said that if you took a long from the level price is at nice you could bank some nice profits before changing tack and looking to go short from the area I have highlighted!
For those of you looking at what a 2 bar reversal should look like I have an example that Johnathon has highlighted. Not sure if he has posted it on this forum.
Remember like all PA we are looking to trade them from swing points (it is number 2 in the 1-2-3 sequence) and both bars, wicks included, should be the same approximate size. It is not just enough to have a bull bar followed by a bear bar.
don't you think this channel could reject price?
To be honest I don't pay much attention to channels. I am looking at horizontal Support and Resistance as the levels from which I play my trades off.
Who knows what will happen in this particular trade. I am looking to move to BE due to the short term support I can see to my left but to be honest no I don't pay any attention to channels or even too much attention to trend lines, but each to their own.