Latest Forex Commentary

Silver Inside Candle – Ready To Catch Bullish Breakouts With The Trend

silver inside day

Gold and silver have been gliding up the the charts, dropping a few signals along the way – especially if you’ve been watching the 4 hour charts.

These are good markets to watch at the moment, as a lot of the major currencies have gone into a slow grind, and look very uninteresting.

We spoke about silver in the war room last session, however it did not make it’s move yet.

The candle closed as an inside day, a framework from which we can structure breakout trades on via the daily chart. The inside day formed right on them mean, and has some bullish tone in the body.

What we’re looking for is a breakout, but preferably the breakout should trigger when the US session opens. This way we avoid any fake outs that do occur in Asia, but sometimes in London too – because gold and silver money comes into the market when the Chicago exchange opens.

If we do get a break of the high, a likely target would be the weekly level marked above – which is anticipated to act as strong resistance.

Gold Drops Bullish Swing Trade Signal Aligned With The Trend

A nice swing trade popped up on Gold today, which the Battle Station made sure I drew attention too.

The Battle Station is my candlestick recognition tool, among other things – and the alert it sent me is on the chart above.

This charts clearly shows a buyers market – the trend is clearly up, printing higher highs and higher lows. In a bullish trend we’re looking for the market to move into higher lows for buying opportunities.

The price recently retraced back into the mean value, and at the same time re-testing a previous swing high – the perfect cocktail for a trend trade opportunity.

The bullish rejection candle that was printed at the end of day last session seals the deal. A nice, clear, bullish body rejection candle – communicating to us price action traders strength was found at this point on the chart.

I am hoping to grab a retracement entry, but I fear this one will take off without me as the setup looks so good – I can see this one exploding higher when the US session opens.

You never know though, so we will be patient and wait to see if the retracement entry is offered this week.

Best of luck on the charts.

EURJPY Breaks & Re-Tests Consolidation Structure – Bearish Rejection Signal

Hi guys, I haven’t been able to post much, I am head deep with big projects. Good things to come I assure you.

Lets take a look at a bearish signal that formed at the end of last week’s trading here on the EURJPY daily chart.

Walk through the price action step by step.

First an uptrend died out, and the market went sideways – forming  a box consolidation structure at a weekly level.

Price finally broke out, to the downside and traded into lower lows.

The market retraced back up to re-test the consolidation structure (as it often does), and dropped a bearish rejection signal.

A rejection signal here tells us the old support, is now holding as new resistance. This is the kind of swing trade opportunity we are looking for after a critical breakout.

It’s tricky sometimes when these great setups form at the end of the week. A pull-back entry may be a little on the risky side, I think I will opt in for a breakout entry after London opens on monday.

Monday price action can be a little rough, and because the reversal signal is not that large in range, a pull back entry might be too tight of a stop loss (unless you want to expand your stop a little).

It’s up to you, but the breakout would confirm continues bearish follow-through here.

Good luck on the charts.

 

Slow To Get Going But Still Followed Through

Well this trade was a great ‘breakout + re-test’ structured trade setup, and these kind of swing trades usually don’t mess around.

Annoyingly, the market stalled right after the signal printed here, and we seen price crawl close to stop loss territory. However, for those who were disciplined – it paid off.

Eventually the market did tank as expected, it just played some ‘stop loss scare tactics’ before moving into profit.

This seems to have been the theme this month – signal, then market pauses, goes sideways, then finally takes off later after some time.

Such is life in the Forex market, each setup plays out in its own unique way – nothing is certain!

I know a lot of the guys in the war room traded this one, nice one to those who caught this out. Discipline achievement unlocked.

Anyone looking for more short opportunities in this bearish move – watch for further reversal signals that may occur on lower highs.

Best of luck on the charts, see you in the next commentary.