No retracement entry, but those who went with the breakout entry option would be stoked. This was such a clear, clear cut and obvious set up, such a shame no retracement prices were available here.
Now the market is testing historical lows, a good place to consider liquidating short positions now. Watching for strong bullish price action signals to confirm bullish interest at this level. Watch out for bearish breakout traps, sells offs under this level probably won’t hold. Just sitting and waiting for a good bullish price action signal to manifest itself now.
A large bearish rejection candle formed on the GBPUSD when moves higher were rejected in the New York session. There is support below but its looking like this level is going to break, which could see prices fall aggressively.
Starting the week off looking at the GBP-CAD pair. A bullish inside bar capped off last week and I’m looking for price to break higher in line with the overall trend.
Hi traderdad, Inside day breakouts need very specific conditions to trade. My concern here is that the GBPCAD market is flat, and I generally only trade breakouts with clear momentum so just keep that in mind.
A bullish breakout trap occurred on gold this morning during the asia session. We are probably going to see prices weaken as the market corrects back the mean value.
A breakout trap occurred through a strong resistance level communicating with price action that lower prices are to be anticipated this London/Ny session. Let’s see how it goes.
A countertrend rally terminated at this previous support level, now holding as resistance. A nice point in the downtrend to consider short positions. If the bearish momentum continues we could see the next extension of this downtrend develop.
Those traders who chased price when gold broke out during the early asia trading hours would have been upset. This was a nice false breakout at extended, or already “expensive” prices.
The AUDUSD dropped a strong looking rejection candle last session…
The bulls picked up price as it sold off into the mean value. The mean value held nicely and the market rallied back upwards to close much higher than it’s open - a nice bullish indicator. We will probably see higher prices develop off this setup but the overhead resistance may prove to be troublesome. The overall bullish pressure will most likely prevail, break the containment line and be drivin into new highs.
Waiting for a pull back into the old breakout level, waiting it to see it act as new resistance and create a new \swing level within the trend. The area also lines up nicely with the mean value and will produce what we call a “bearish hot spot” for bearish price action reversal signals to form.
AUDUSD looking a bit “top heavy” here as a bearish rejection candle was printed when price reacted with a minor weekly resistance level. Price is overextended here, making it vulnerable to a bearish mean reversion move.
Using breakout entries when price breaks the low of the rejection candle would be the most prudent entry method here, considering it’s monday and price action can misbehave during the market open hours. It would be better to confirm selling momentum and enter via a sell stop order.
Looking out for a bullish price action signal to form at the old resistance area. I am anticipating this level will act as support and become a new swing level within this bullish trend. Looking out for long signals here to help position into the upward momentum.
A double top formed on the intraday 4 hour chart suggesting lower prices, we need to see a break of tat neck line and a close below.
The daily chart also has a second, larger rejection candle that formed last session at the end of day close. All the variables are pointing downward, just waiting for the action.
Sell off from two bearish rejection candles occurred last session. Very aggressive bear day with prices falling straight from the open price and closing near the lows there. We’re now moving into London trading hours and we can see that the Asia session retracement up the “power candle” has been rejected.
This is generally a good sign there is more follow on movement coming in the busier London/New York session. Plenty of room for the market to fall down into, and could potentially develop into a full blown down trend.
Price has already breached the previous days lows, encouraging bearish momentum.
Looking at the GBPJPY price action for the last candle of the week. We’ve got an indecision candle at the range top on the daily chart with a negative close on the body, giving the candle a nice bearish tone. If price breaks the low of the Indecision Candle then short positions could be considered with the range bottom potential targets.
Last time this level was tested a bearish rejection candle formed and seen very nice bearish follow through to the range bottom.
Keep in mind it is NFP tonight, and we all know what that means.
As anticipated we did see some bearish price action as the market broke out of the Indecision Candle and moved away from the range top. The bearish response from this setup was quite strong, and today heading into London trading hours we’re seeing signs of continued bearish price action
We will most likely see the market move down lower to re test the range bottom.
The AUDNZD broke out of a double inside day setup last week and produced a nice move…
Watching the AUDNZD daily chart as price heads toward a bullish hot spot within the uptrend. We’re basically looking for the old resistance to hold as new support and create a swing level within the trend. It’s here Ill be looking to take advantage of this uptrend and position on long if any bullish price action reversal signals form.
