Last session I close all my open positions out on NZDJPY and AUDCHF due to lack of follow through.
I wasn’t going to worry about any other setups but this one popped out at me today when I was scanning the charts.
We can see a clear push down after breaking prior support (into lower lows), and now we’ve got the correction + rejection candle coming of lower highs.
This market is forming a nice down trending ‘posture’, and if price comes down of this rejection candle we have some nice reward potential below.
This is the first lower high that’s being printed, which is usually a sign of bearish change.
Being a reversal pattern, a retracement entry would be nice here, and it would go a long way in exposing high risk/return potential.
Low Follow Through – Deep Correction Causes A Little Anxiety Here…
The bearish rejection signal drove the market down as foretasted, however we’re experiencing some strength again in the market which is testing the resolve of us swing traders here.
We all like trades to go from entry A to profit target B in one swift move, but sometimes the market screws around, and we fly straight into an unexpected storm.
These are the moments that really test swing traders, price action traders, and really all traders in general.
We don’t want to just exit out of fear, the trade really is ‘valid’ until the stop loss has been hit.
The only concern here is that the market printed a higher low – with the recent lower high, it suggests that the market is squeezing. If so then we should see another lower high here printed soon.
This is probably just end of year, new year crazy price action – technically I don’t see a reason to close this trade.
Patience is a Profitable Trait in this Game…
Well what a welcome into trading 2018!
There is no better feeling when you enter a trade with a plan, stick with then plan (even when you’re really tested), and being rewarded for your efforts.
This is a really good example of how trades will not always fire off like a rocket launcher, but sometimes get caught like a kite in the storm.
After holding at a new lower high, the market dropped really hard when trading activity picked up after the new year.
A really nice way to start 2018 for sure.
If you’re interested in learning how to swing trade like this, and want to be able to anticipate price movements by looking at market structure and price action – check out the Forex course in the War Room!
There is also plenty of free material around the site for you to check out also.
I hope many of you guys were able to catch profits here – best of luck for trading 2018!