AUDCHF Bearish rejection candle trade drops quickly to hit 1:3 Risk/Reward target

Quite a volatile period last session as high impact news events bombarded the market, one minute eurusd is up then down then I wake up this morning and see it’s closed much higher than the open. Not a fun day for any trader.

Today a decent setup has formed on the AUDCHF daily chart where a new swing level has been confirmed as old support turns new resistance. War Room members will be targeting retracement entries to take advantages of intra day corrections of the bearish rejection candle to grab a better entry price.

We have a strong bearish rejection candle here, if this setup plays out we could see the next bearish extension of the downtrend here. A 1:3 risk to reward target would be optimal here, traders could push for 1:4 by going for a test of the recent lows.

Trade Update

Last time we identified and talked about a potential bearish trading opportunity on the AUDCHF daily chart.

Just to re-cap it was a bearish rejection candle price action setup that was reacting with a swing level in the market. In this case it was a older strong support level which had now been flagged as resistance via the bearish rejection.

This bearish rejection trade setup was the market saying to us “hey I am reading to start moving down again” and was our cue to take advantage of the bearish continuation.

This trade played out nicely, we got our retracement trigger price and the market then dived down very quickly to hit our 1:3 risk reward target. The market almost tested the recent lows for those who were going for 1:4 but was a few pips off, but there was plenty of opportunity to exit back at 1:3.

This was a very straight forward trade setup and this is the type of simplified power trading we get stuck into inside the War Room. The rejection candle is one the War Room trader’s favourite price action setups.

If you think this type of trading is something that would work well for you and you want to learn more about our price action trading methods, feel free to check out our War Room Lifetime Membership.