EURCAD 8H Chart Drops Asia Session Inside Candle @ Swing Point

eurcad 8h inside candle

Looking at the EURCAD 8 hour chart today where an interesting situation has formed.

An inside candle has printed – demonstrating the market has stalled as a result of the market bumping into this swing level. The inside candle is a reflection of the market thinking ‘hmm, what should we do now?’

Inside candles that form at points on the chart where a ‘break or bounce’ decision needs to be made usually provide the better breakouts.

Although this 8 hour chart looks reasonably bullish with it’s higher highs and higher lower, I think it’s a bit deceptive. Top-down analysis is key for swing trading, and the weekly and daily chart both look bearish.

This inside candle on the 8 hour chart basically represents the Asia session price action. If you can get on the 8 hour charts, you will noticed it is common for an ‘Asia session inside candle’ to form, which is then followed by a breakout during the money sessions (London & US).

I am only interested in a downside breakout here, as the weekly and daily chart are communicating lower prices a likely.

The weekly chart shows the market bouncing off weekly resistance, and the daily chart shows a bearish mean reversion underway.

Looking for bearish breaks of the 8 hour candle low for short opportunities.

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  1. Steve Epperson comment display photo
    Steve Epperson
    On the four-hour chart, it's already ducked under the EMA-20. Looks like a nice tight bear channel. If I were trading this, I would enter w/sell stop a few pips below the latest pullback and hope for a sell spike or climax . Stop just above the current EMA line. Not chicken, but I am flat for the rest of the week since I've already met my target profit goals: thanks in large part to "THE FOREX GUY." :)
    1. Walter Bateman comment display photo
      Walter Bateman
      How long have you traded the Forex Guy's strategy? I'm interested in testing his techniques, it makes sense, at least what I've read so far. I've been gleaning a lot of price action trading information from forex4noobs, but I think Dale has a unique way of tweaking the concepts I've learned from Nick at forex4noobs. I'm going to try Dale's techniques and see if it will help me to not over trade (having one trade on at a time) which will hopefully help me to hold out for the best set-ups. I feel like I have a good handle on the money/risk management part of trading, nothin less than an R:R of 1:1.5, preferably 1:2 though.
    2. Steve Epperson comment display photo
      Steve Epperson
      Hey Walter. Sorry I didn't see this reply sooner. I think the best thing you can do is join Dale in his War Room. As far as risk/ reward, I shoot for nothing less than 1:4. It's the most difficult aspect of what Dale teaches, but well worth it. I am now a profitable trader due to his teachings. Hope this helps.
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