Recently, we discussed a bearish price action signal that formed on the daily chart of the EURNZD market. This bearish Rejection Candle shows weakness of price a significant range top and we talked about how this could push prices further down.
The signal formed at the close of a trading week and over the weekend bad news concerning Cyprus banks caused the market to gap down over the weekend. However some traders from the War Room took this trade when price filled the gap and tested the bottom of the rejection candle low and used this opportunity as a second chance to get into this trade.
Since then this trade has taken off to produce 550 pips and is continuing to push down lower, this just another example of how easy price action trading can get you in on large moves before they happen by using the basic elements of a price chart, utilizing price action only and not relying on any indicators to make trading decisions.
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A nice bearish rejection signal has formed on the EURNZD chart at the close of last week’s trading session. This rejection candle is great in form, displaying a nice strong bearish close and is rejecting a strong resistance level, which is also the top of a shorter term & longer top range in this market.
A great entry price would be the previous high retracement level, signals that form at range extremes generally do give great retracement entry opportunities that are discussing in the Price Acion Protocol trading course. If we can get this retracement level entry and the signal has good bearish follow through this could produce a very high risk/reward trade if traders targeted the short term or long term range bottom.