It does look good but I don’t use the weekly chart for signals, just to mark out the major turning points. You can’t beat the daily chart when it comes to candlestick confirmation.
The AUDUSD has slammed into weekly resistance last session and the market sold off aggressively from it…
The weekly levels generally acts as the major turning points in the market, so this could be a game changer for the AUDUSD. This is a counter trend signal but if the lows of the outside candle are broken we could see further bearish follow on here.
The trend is still technically up, but if the bears do extend their reach this session the mean value will be tested. If the trend is to remain intact the mean will need to hold as dynamic support, if it doesn’t and the bears punch through it we are potentially looking at a trend change.
recently pair has moving downward ,looking at bearish rejection candle ,it seems its a risky if again pair move sideways ,so traders be cautious,better entry is a breakout method.
Looking at 2 markets today, the USDCHF and the GBPJPY
Waiting for the usdchf market to correct and rejected the old weekly support price level and drop a sell signal in the process.
The GBPJPY pair has formed I double Inside Day setup. I love these tight consolidation breakout type setups as they have the potential to produce really explosive moves. Just recently a there was a double inside breakout on AUDCAD which produced a lengthy price move.
The market did initially breakout to the upside but could not maintain these higher prices. Closing as a bearish rejection candle this is now a very bearish situation. Looking for breaks of the rejection candle low, even more so breaks of the double inside day setup to really lock in a bearish bias.
I am out of the GBPJPY short, it closed as a bullish rejection candle and the situation is just confusing there now.
Looking at the EURNZD daily chart. Price has gapped away from the mean value which generally creates strong tension for a reversal. Those large upper wicks are signifying bearish rejection and today’s candle is already trading below the open price after rejecting an early move higher.
We have already seen last session’s highs broken in a false break, now if the market pushes past the lows of the previous day that would trigger a bearish breakout trap & reverse trade setup. With the heavily anticipated FOMC release coming up, which will no doubt send shockwaves through the market, we could see the volatility push this trade along.
It is typical for mean reversion trades to be quite aggressive like this. Price is now testing a support level, we are just watching to see if any bullish price action manifests to signal us out of this trade. If the support level doesn’t hold then there is plenty of room underneath for this trade to dig deeper. Given how last session’s candle closed as an aggressive bearish power candle there is a good chance we will see bearish continuation into this session.
Vasude is a keen trader who doesn’t let any good price action signal slip under his radar. Well done on those good trades in the Oil market, one of the hardest markets to trade.
Today I am looking at entering a bearish signal that formed on the GBPCHF market.
I’ve mapped out a downward channel here which is very dominant on the daily chart. Since the trend is downwards, I am looking at bearish signals that form off the channel top, since this is the main turning point in the market.
Friday dropped a nice bearish rejection candle signal at the channel top, with a nice bearish close in the body of the candle. Given that we have a nice pa signal at a main focal turning point, and inline with the trend we can build a good case to go short.
I am going for the kill with a retracement entry, but since it’s a Monday and Friday signals can be a little bit risky, a break of Friday’s low would be good confirmation that the market is responding to the signal and the bearish momentum is there.
Unfortunately the GBPCHF setup didn’t work out as anticipated and the channel pattern was broken to the upside. Losses are o be expected and that’s when the power of positive risk reward money management comes in and keeps us ahead of failed trades.
Today looking at a potential long term breakout on the USDJPY…
USDJPY is a market that we have been steering clear of most of the last part of this year. At the beginning of the year we had many bullish price action trading opportunities with the powerful trend that was present on the daily chart. But since then the market has been stuck in a long term consolidation pattern.
Last week, the market closed with a strong bullish rejection candle that closed outside of the squeeze pattern and we discussed in our war room weekly commentary to watch for further bullish signal to get us in on a potential breakout.
Last session the daily candle closed as a bullish rejection candle, signaling further upward movement is most likely. If the bullish momentum continues would could be looking at the next bullish trend extension on the Yen pairs. We will be continuing to look out for further bullish price action signals to jump in to the developing trend.
