Simple 4HR OPEN PRICE REJECTION Strategy

Trading Systems Free Forex Trading Systems
1

Hi there traders,

I would like to share this simple system that I trade, predominantly on the 4hour chart. The basic principle is that of OPEN PRICE REJECTION.

So if there is BEARISH REJECTION it means that one of two things occurred:

[ol]
[li]Price closed below the open price of a BEARISH bar AND this open price is subsequently tested by two bars AND remains below the open price, OR
[/li][li]Price closed below the open price of a BULLISH bar AND this open price is subsequently tested by at two bars AND remains below the open price
[/li][/ol]

Conversely, if there is BULLISH REJECTION it means that one of two things occurred:
[ol]
[li]
[/li][li]Price closed above the open price of a BEARISH bar AND this open price is subsequently tested by two bars AND remains above the open price, OR
[/li][li]Price closed above the open price of a BULLISH bar AND this open price is subsequently tested by two bars AND remains above the open price
[/li][/ol]


HOW TO PROCEED
[ol]
[li]
[/li][li]Sell the BEARISH REJECTION at or near the OPEN PRICE
[/li][li]Buy the BULLISH REJECTION at or near the OPEN PRICE
[/li][/ol]

PAIRS, STOPS, LIMITS & TRADE MANAGEMENT

NZDJPY,& AUDJPY - Stop of 35 pips and tp 60pips. Protect trade at 35pips profit and move stop to +35pips when gaining 55pips.

EURJPY & NZDUSD - Stop 40pips and tp 80pips. Protect trade at 40pips profit and move stop to +35pips when gaining 60pips.

May hold a bit longer if swing high or low forms at rejection levels.

REJECTION DISTANCE

Rejection is valid if price hits the open price or spikes within 1-12 pips of the open price in question. Test bars must clearly show wicks rejecting the OPEN PRICE.

Anyone is welcome to participate, but no trolling and the rest of nonsense. Just trade or move along. Every trader respect the other.

BEARISH REJECTION 1 - Example

brr1.jpg700×377 26.1 KB


BEARISH REJECTION 2 - Example

BRR2.jpg700×377 25.9 KB

BULLISH REJECTION 1 - Example

BBR1.jpg700×407 18.4 KB

BULLISH REJECTION 2 - Example

BBR2.jpg700×375 19.5 KB

2

Looks interesting, I might test this when I get some free time. :slight_smile: Is there a reason why you only trade NZDJPY, AUDJPY, EURJPY & NZDUSD?

3

Hi Kevin,

For this strategy, using the stop and limit rules posted, I found that these pairs gave more successful trades. Others required larger stops. You may try other pairs keeping in mind the need for these adjustments.

4

Sold NZDJPY after bearish rejection at bullish open of 21st May bullish bar.

REJ1.jpg700×435 32.5 KB

5

Daily chart showing possible buy setup so may protect a little earlier.

6

AUDJPY Sell limit at bearish rejection on May 22nd 8:00am EST bar’s Open price

rej2.png698×475 9.6 KB

7

Good Morning. I went against my better judgement on this trades and did not reverse to take the buy setups which traded beautifully to their take profit levels. Hence, stopped -70pips on these two trades.

8

Short audjpy at 95.62, bearish rejection at open of May 21st 20:00 bar.

9

Trade now protected.

ajshort.jpg700×360 26.1 KB

10

Increased my tp on the audjpy short.

Short AUDUSD bearish rejection at the open of May 26th 8:00 bar, sl 40pips, tp 80pips, entry 0.7743
Short NZDUSD bearish rejection at the open of May 26th 8:00 bar, sl 40pips, tp 80pips, entry 0.7248

11

Took profit on the trades +66pips. Audjpy short closed at entry.

12

Short the nzdjpy.

REJ5.jpg700×285 23.1 KB

Stopped out.

13

Short eurjpy at 134.81, stop -40, tp +80pips, Bearish Rejection on 22, May 4:00 bar. Rough markets today.