Price is now testing the ‘floor’ on the chart here as it moves into a major support level on the daily chart. We can see by zooming out how this level has acted as strong support before. We are waiting to see how price is going to react with this level.
If the market breaks through, we don’t want to chase price and sell into the breakout because this is a high-risk area for a market breakout trap to occur. If a breakout trap occurs, meaning that the market tries to push below this level but can’t maintain the lower prices and closes higher, then we could consider that the support level is holding and the bears are ‘out of steam’. We just have to sit on our hands and wait to see how the price action responds to the support ‘floor’ in the upcoming trading sessions.
This has been a proven level for price action signals, with the last two tests of this level also generating bearish rejection candles that matured into nice profits. EURAUD can produce big moves, so we will be watching this one on Monday, looking for retracement entries."]price action event](Looking at the EURAUD cross pair after the close of last week’s trading, where a price action event has taken place at the current ‘market top’. From the daily chart point of view, this market has been in an overall range, moves higher terminating at the range top and sell offs bouncing off the range bottom.
When the market tested the range top last weekly, price stalled and then rejected any further moves higher past the resistance containment level. The Friday candle closed as a [bearish rejection candle) has taken place at the current ‘market top’. From the daily chart point of view, this market has been in an overall range, moves higher terminating at the range top and sell offs bouncing off the range bottom.
When the market tested the range top last weekly, price stalled and then rejected any further moves higher past the resistance containment level. The Friday candle closed as a bearish rejection candle with a lower close than it’s open, signalling lower prices.
This has been a proven level for price action signals, with the last two tests of this level also generating bearish rejection candles that matured into nice profits. EURAUD can produce big moves, so we will be watching this one on Monday, looking for retracement entries.
I got a nice entry from AUDUSD yesterday… Since Ive been through Nial Fullers price action course, I know a little about 50% pin bar entry, so I used that based on the clear downtrend, price beeing rejected at the ma, forming a pin bar.
it`s going good so far. TP is set to 3x the SL, which is above the high of the pin bar…
Both the AUDCHF & EURAUD setups went the other way, did your methods confirm a entry or did you guys stay out of trade,
Yes they did, I didn’t enter EURAUD because of the gap down and the setup didn’t offer the retracement entry so I basically missed out, but I was planning to enter. Now the range top is broken I am waiting for a long signal to develop off the top of the range breakout level.
The AUDCHF broke it’s support level also, the common denominator is the Australian dollar weakness. We’ve got a policy in the war room to stop over trading and that’s “Only have one position open at a time”. This means you don’t go and enter 5 setups at once and expose yourself to correlated movements like this.
I know a little about 50% pin bar entry, so I used that based on the clear downtrend, price beeing rejected at the ma, forming a pin bar.
it`s going good so far. TP is set to 3x the SL, which is above the high of the pin bar…
That’s a nice trade Gbraidotti, that’s a good target level since weekly support sits down there.
The S&P has dropped a bullish rejection candle off a support level for anyone who follows the indecies.
The S&P has been on a killer uptrend lately with prices driving higher into all time high prices consistently during the last few weeks. Retracements back into the mean value have been the best of buying opportunities as it has acted as one of the major turning points in the trend.
Last session the market retraced into the mean value, and a swing level dominant from the daily timeframe perspective. The counter trend retracement move terminated here and rejected the lower prices printing a bullish rejection candle. If price manages to break past it’s highs we could see the next stretch upwards for this trend.
If it fails and breaks the low, we could be looking at a much deeper downward movement as the support level breaks. If the bearish event happens we will be looking to employ other forex trading strategies to take advantage of bearish situations.
Can anyone advice me please why 2013.10.22 OUTSIDE BAR didn’t move lower 2013.12.03 OUTSIDE BAR is moved lower price?
both OUTSIDE BAR formed on @ strong resistance… USDSGD DAILY
So guys. I just came across an trading article talking about the possibilities we can have from a failed break out of a range.
Basecaly it`s said that if a range is broken, but prices fail to hold past it, normaly price will go all the way back to the other end of the range and try to test it too.
Looking at the daily chart of NZDUSD, it seems that we have exactly that.
From my image we can see the Failed BO 1, where I dont see any price action signal telling us to go long on it after the breakout. Prices fail to hold above that resistance and come back and hit the ranges support. Right after that, prices go all the way back up to the resistance and we see that beautiful pin bar that worked great with the 50% retrace entry method.
No, some days ago, we see a failed bo dowards (failed breakout 2).
Price went back up to test the support that could work as resistance at this point and we even have something that could be seen as a pin bar (DnB, help out here pls!).
The BO failed too and we might be going for a retest of the resistance up there.
DnB and any other war room member, do you guys have any thoughts on this pair and it`s formations as of lately? Would we be looking to go long if we saw a PA signal retesting the support?
The range did break, and prices couldn’t maintain themselves beneath the range and sling shotted back upwards. It’s just a fail break of the range bottom. This market doesn’t have any volatility in it at the moment so it’s just drifting sideways. I am staying away from the NZDUSD until it starts clearly trending in a certain direction.
Why worry about the NZD when the AUD pairs are producing much better movement. Don’t over analyse situations. You’re trying to make sense of a messy market, we could sit here all day and pick it to pieces but it’s not going to get us anywhere. I am only going to look for long signals when this market clearly starts moving upwards.
Just checking the charts around the London open time, which I often do to see what happened during the Asia session. I’ve noticed that the USDCHF has reached an important turning point. The weekly support level being tested is where the market previously found a bottom.
Now the Asia session breakout to the low side is now being rejected as buyers step in as we build closer to the buiser london trading session. Price is also located at an extended point from it’s mean value, so there is a good chance of mean reversion.
This is the beginnings of a breakout trap & reverse setup, I am expecting the bulls to fire up here but Ill be waiting for a break of the previous day’s high before considering long positions.
Thanks for the chart nkanirmal, I am bearish on the GBPNZD as the daily chart clearly shows the range top being rejected and we will most likely see a test of the bottom of the range now.
The USDCHF long trade idea didn’t trigger last session, the support level was broken.
Just looking over the charts before the market opens, I noticed the USDSGD closed as a bearish rejection candle on the close of last week.
Focusing on the level that this candle is reacting with, we can see it’s been a very stuborn level. Once acting as support in the past is now proving to be a very solid resistance level contain price now on 2 other separate occasions. Now the 3rd test has produced another bearish response from the market we can start to anticipate lower movements from here. A break of the low of the candle next week would be nice bearish confirmation.
Watch out for the erractic monday price action, especially during the Asia session there, breakouts that occur during this time generally have little weight behind them and can easily ‘trap’ you into bad positions.
