for EURUSD, it formed descending triangle which is bearish.
isn’t it better to wait for breakout first?
I think you r right 100%
Changing to the weekly chart, you will be able to see that is sitting at major support. At the same time, the 200-MA is also very near.
Hey ahohitedodo,
I just had a look at the Dow chart for you. This chart does look quite bearish, especially after Friday’s close. 2 Inside bars with upper days and Friday did close bearish.
Price is also trading under that support level now after price as topped out with a double top sorta pattern there. A break of the lows could kick off a bearish move/trend.
In regards to AUDCAD, yes there was a major weekly level that price did bounce off but the downtrend looks very intact still after the Bearish rejection candle off the trend mean/resistance level. The Friday candle did close bearish for the week and I expect this one to continue to move down, the real test will be to see if price breaks through that weekly support again if it does move down and test it again. Another bounce could indicate price has ‘bottomed out’ on the weekly level.
Grazie milla DnB!
Yes, EURUSD does look like it will see more consolidation before any breakouts occur. Have I mentioned that EURUSD is one of my least favorite pairs, it’s everyone else’s favorite because it has the lowest spread, but I find that most of the time all it’s doing is chopping around getting no where.
Hi dnb, I’m curious as to how you determine Pin Bars. I’ve found different opinions on this, ie…
- length of upper or lower wick should be 3x the body, while others say 2x that of the body
- the body should be within the range of previous candle’s range
Well I don’t call my signal candle pin bars, because really a pin bar is a candle that has a long tail on one end only and the close and open price are not too far away from one another, giving that ‘pin’ looking structure to the candle formation. I call my candle signals Rejection Candles. Basically I am looking for similar features but the body of the candle doesn’t have to be so narrow. For a bullish rejection candle the body can have a thicker bullish close to it, as long as the candle suggests that price did move down to an area and was quickly ‘rejected’ by the market closing back up near it’s open or much higher.
Thanks Dnb! I was all the while thinking that they were pin bars…
How about the size of the rejection candles? Do you also check to see if they are at least average size and not very small?
On behalf of DnB, definitly! Small bars are meaningless generally, the bigger the better
Hello friends look on USD/CAD and NZD/USD. I think there is a signal for trade. Plz comments. Thanx
The EURUSD Outside Bar signal has launched nicely upwards of support there, did anyone take this trade?
Jui25, that is a nice 2 bar rejection signal on USDCAD, the only problem is that the market has lost momentum and it really grinding sideways (notice the flat & rippled EMAs ). However this looks like a powerful signal, very large, clear and in your face, coming off a clear daily Resistance level. This signal could take off south but just be aware that the choppy conditions do add a bit more risk to the setup.
NZDUSD has not followed through with the bearish movement after all the bearish price action, and we are getting this choppy up and down nowhere sort of movement -__- , I know traders who like to take their Price action trade and just get in and then out at 1:2 risk/reward. Where as me I like to catch longer term moments on the daily charts, so these choppy conditions make the market less fun at times lol.
Are you going to take any of these setups jui?
Imagine my surprise when I decide to check in and see how this old thread is coming along… mfw 32 pages.
Hi Scotch,
great to have you back, hows the price action trading been going?
hi dnb,
i wonder outside bar require wide stop loss 120-150 ,i enteretd in trade though ,but swing like hell in positive and negative ,but inside bar is somewhat quite different,what is ur view
Inside bars usually require a tighter stop loss because their candle size is generally a lot smaller. Inside bar breakouts are usually much more explosive in nature than outside bar trades. This Outside bar trade did take a bit of building up before a decisive move occurred. Watch out for that overhead resistance there at 1.3175, if you have a close look this market has gotten nowhere in the past month so any bearish signals off that resistance could kill any further up movement. To confirm the overall trend continuation we need to see price break and close above this line. Good Luck!
Sorry to butt in here, Vasude, but I think I can answer that question for you. Yes, outside bars are going to have large stops. Sometimes HUGE stops. But the fact of the matter is, so what if it has a large stop? Historically speaking, outside bars work more often than not. If you only take outside bars after retracements, and off of major S/R levels, the efficiency of the outside bar trade increases dramatically.
Another important factor in trading outisde bars is you are still able to maintain a healthy R:R ratio. Your profit targets will generally easily reach 1:2.
So, ultimately, outside bars have large stops, but if used appropriately, they will also have large targets.
Finally, which is better? A system with 25-pip stop losses and 1:1 targets, and is right half the time; or a system with 150 pip stops, 1:2 targets, and is right 75% of the time?
Haven’t been doing a whole lot of it; I’ve been too busy bungling my intraday trading with an impressive amount of flair.
Hi
DnB
Do u only trade (most of the time) bullish and bearish rejection candle? If yes then reason plz. Thanx
^ Somebody’s window shopping.