That’s right, we traded the second rejection signal not the first one. The second signal was more convincing.
Having a look back on this NZDUSD bullish price action trade opportunity that presented itself on the NZDUSD daily chart recently.
This market has definitely seen very explosive bullish response from the signal, generating excellent return on investment, which any money mangement system worth it’s weight will take advantage of.
The breakout of that containment line was our first clue the market was ready to push upwards, then the retest of the breakout level with two bullish signals allowed us to pull the trigger on this one.
Most traders are looking to take profit now going into the end of the week, and we will be watching for more bullish price aciton signals that form around the trend mean value after correctional moves.
It’s Sunday and it’s time to have a look where the markets are out heading into next week’s trading.
We’re revisiting the gold daily chart as the bullish situation has strengthened when the market printed another bullish rejection candle into the weekly close. The market is communicating with us here and demonstrating that lower prices were not desired.
Gold is also in a beautiful uptrending state with consecutive higher highs and higher lows being printed, this chart is something that has got many war room members existed and myself to be honest.
We can anticipate higher price movements next week and these bullish rejection candles could just be the foundation we need to take advantage of any higher movements.
Hi DnB,
nice thread. many thanks for your effort:-)… one question.
what all pairs you trade?
regards
vijai
The short answer is anything goes, all the major currencies and crosses. Gold, silver, oil and the S&P, Dow indexes.
GBPUSD DAILY, Last 2 candles - Oustide bar followed by a inside bar. hope break upside will give a good trade
same setup in EURUSD - correlated
EURGBP Daily, last 2 candles - outside bar followed by a inside bar which is a pin bar with bullish rejection of dynamic support.
Hi Dnb, what is your view on this setup?
EURNZD Daily - Last 3 candles - bearish rejection of the down trendline, followed with a strong bearish candle and finally a inside bar. Breaking to the downside will give us a good short trade.
Others, whats your view?
I will sell below inside candle on en daily.I agree with you.
GBPUSD DAILY, Last 2 candles - Oustide bar followed by a inside bar. hope break upside will give a good trade
I think we may get some bearish activity to start off the weak here before those highs are broken, especially during the Monday Asian session.
Hi DnB,
I see, current GOLD price is at strong resistance level.
do you think this resistance is not strong enough to consider?
Hello Vijiam,please which software are you using to mark your charts? please i will appreciate if you can upload it here. thanks
Hi Esosa,
I dont use any special software…all markings are done using MT4. the marking that i had used in my charts are Rectangle box and horizontal line - you should find this in MT4
regards
Hi DnB,
I see, current GOLD price is at strong resistance level.
do you think this resistance is not strong enough to consider?
Gold is in a solid uptrend at the moment, so you’ve gotta anticipate that these resistance levels are going to be broken as the market trends higher. I see a lot of traders putting too much weight on above resistance levels in uptrends and support levels in downtrends. These levels get broken all the time in trends guys.
Unless we see some powerful counter trend bearish price action off that level then I don’t think it’s going to be much of a problem. What we need to watch for is that resistance level to be broken and then retested as support with a bullish price action signal.
It’s a bit late as the new sessions already started, but I just wanna see if I’m on my way to understand something more.
I’m watching EUR/JPY daily, probably the resistence I drawn is not perfect, but for the way I marked it…it gave me some ideas:
I see an inside bar that is a pin bar at the same time: the upper shadow touched and rejected the resistence and the MA 21.
The bullish trend seems finished 3 days ago…and the beginning of this bearish movement broke below the support and retested this level as resistence with the last pin bar.
I was wondering how to interpret that pin bar: if like a confirm of a stronger bearish trend who has to come…or like a larger rebounce of the previous bullish trend that had a small down trend and now is going up again.
Now I say what I thought: I thought the market to keep going down: I wanna understand if my thought could be right for the things have been written in this thread.
I know there is not a clear down trend, but the mean price is above the current price, there is a resistence which worked well for the last candle, and there is a price action signal as that pin bar.
Am I missing something.
Any comments would be very appreciated
Hey PlainView you’re analysis is pretty damn good,
In fact we already put up a post on the site about this trade setup so great minds think alike yeah?
Just on a side note: You rarely ever hear us use the word ‘pin bar’, its technically incorrect since we’re not dealing with bar charts. That’s why we call our equivalent setups ‘Rejection Candles’. The first bearish day for this week is sort of like a hybrid between a bearish rejection candle and an indecision candle heavily weighted to the bearish side. Not the wicks pocking out each end of the body.
However that day did demonstrate bearish rejection of that level, confirming the market was holding there as resistance, now we’ve got an inside-rejection day combo which tells us the market did hold there again as resistance as the bear rejected that level.
If price breaks the Inside-Rejection candle low, then we could very much see some good bearish follow through here. However there is not trend here so some of the edge has been taken away from us. This market has been swinging up and down the last few weeks, there is no telling if that’s going to happen again.
hi
gbpnzd has formed a bearish pin bar at swing levels,already sell trade triggered at 50 retrace entry
[QUOTE=“DnB Price Action;514781”]Hey PlainView you’re analysis is pretty damn good,
In fact we already put up a post on the site about this trade setup so great minds think alike yeah?
<img src=“http://forums.babypips.com/attachment.php?attachmentid=49022”/>
Just on a side note: You rarely ever hear us use the word ‘pin bar’, its technically incorrect since we’re not dealing with bar charts. That’s why we call our equivalent setups ‘Rejection Candles’. The first bearish day for this week is sort of like a hybrid between a bearish rejection candle and an indecision candle heavily weighted to the bearish side. Not the wicks pocking out each end of the body.
However that day did demonstrate bearish rejection of that level, confirming the market was holding there as resistance, now we’ve got an inside-rejection day combo which tells us the market did hold there again as resistance as the bear rejected that level.
If price breaks the Inside-Rejection candle low, then we could very much see some good bearish follow through here. However there is not trend here so some of the edge has been taken away from us. This market has been swinging up and down the last few weeks, there is no telling if that’s going to happen again.[/QUOTE]
From my view i would call that inverted hammer which is bullish candle hinting price will move higher
It’s also look like a PB that form at swing low which is very risky and probably won’t work out (which confirm my view that it’s a inverted hammer)
Anyway it’s my opinion, we’ll see what happen tomorrow and good luck trading
