EURNZD Taps Trend Line Resistance & Prints Bearish Rejection Candle

eurnzd rejection candle via trendline

Some nice price action for this week on the EURNZD daily chart.

We can see a recent trend line support has been breached. Price did move slightly lower after the breaks, but then retraced back up to test the old trend line as new resistance.

This is common price action behavior for a breakout event, and it creates a nice swing trading opportunity.

We’ve got a nice thick bearish bodied rejection candle here for this session, which adds to to the value of this bearish trade idea.

Looking to grab retracement entries, but the market did bleed lower a little at the session open.

Now we’re seeing some retracement price action come in, so there is still a chance the retracement entry limit order may be hit.

If it doesn’t get hit, I would be looking for short opportunities after London open using our breakout methods.

 

Retracement Entry Hit – HUGE Move!

eurnzd breakout and retest

A great result here, but I was a little late posting an update sorry!

I didn’t catch the whole move but I did get 1:6 on this one. But you can see the sort of move that was generated from this kind of trade.

These structure breakout and re-test pattern trades are very powerful, and probably one of the most powerful swing trade you are going to get .

They have a really good success rate and produce extended moves. The only issue is traders don’t have the discipline to ride them out.

Structure breakouts like this one occur from major trend lines, as we’ve seen here – also box patterns (tight ranges) and price squeeze patterns (wedges).

If you would like to learn more about these trade signals and how to trade these breakouts, or get alerts when they do occur from the Battle Station, check out the War Room information page, as it may be of great interest to you.

All the best on the charts for this week!

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4 Comments...


  1. Steve Epperson comment display photo
    Steve Epperson
    1700 EST: You can tell what a noob I am to swing trading. You point out plain as day what I am looking at and I'm still having trouble seeing it! Probably what adds to my confusion is the daily indecision candle just posted. Yikes! A confused mind always says no, so I am out for now. Thank you for pointing out this interesting set up. I hope you make a ton of money on it!

  2. Luis comment display photo
    Luis
    Hi, I have a question: how can I apply the breakout strategy if London open is at 2 am in my country?. I am sleeping.Thank you.
    1. Dale Woods comment display photo
      Dale Woods
      You could use my money management panel to avoid breakout orders being filled during the Asia session. But sorry to say you really need to check the charts at the London open if you want to trade these breakout trap & reverse kind of setups.

  3. inderjeet comment display photo
    inderjeet
    so greatttttttt sir god bless you keep it up....
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