We recently covered some discussion on a Bullish Rejection Candle Price Action Signal which is shown below.
The bullish rejection candle was a high probability trade because we were trading with the core trend momentum. The signal was strong in form and was located at an excellent buying point on the chart. This trend pressure prevailed here and we have now seen this market explode upwards into higher prices.
If you used the advanced entry techniques in the Price Action Protocol you could have achieved a 1:5 risk/return trade, which means 500% on your initial investment. That’s not bad for 10 minutes of work, that is really the true power of trading with price action. Normally indicator systems would be too slow to respond to generate those type of returns.
Previous Post On This Setup
The GBPUSD has been difficult pair to work with in the last few months, mainly due to the lengthy consolidation periods where the market had no direction. With no clear direction it’s hard to make good trading decisions which is why we’ve been avoiding the GBPUSD.
Now the conditions have cleared up here, we’ve got some momentum going as price broke out of the clutter and started trending upwards. The last session dropped a bullish rejection candle signal which is in-line with the fresh bullish trend momentum. The signal candle also made a HL which is great for that extra confirmation.
If prices breaks the highs of the rejection candle it will trigger the trade in with the bullish momentum, but we will be looking for retracement entry opportunities from the Price Action Protocol for a more refined entry to the trade so we can really tighten up the stop loss and bring out the reward potential of this trade setup.