nzdjpy inside bar bearish price action signal daily chart

While most of the major markets have fallen into a violent mess We’ve managed to spot a trade hiding on the NZDJPY daily timeframe.

What we’ve seen here is the market start breaking down out of a containment support level, the EMA’s are now even starting to point downwards as the bearish momentum picks up. The EMAs are a nice trend filter and generally point in the direction of the core market pressure.

An Inside Day formed at the close of the last New York session with an aggressive bearish close to the day. Even with Inside days we like to see the signal candle close overall in favor of the market momentum. This Inside Day is located right underneath the previous support line, which signals the market churned away as it interacted with this key swing point and then closed lower as the bears come out on top.

If we see this Inside Bar play out and the market drops, there is plenty of room to the downside for the market to fall to create a nice return potential. We will be targeting the next key level support marked on the chart for our profit targets.

Trade Update

nzdjpy inside day price action trade target reached

Previously we discussed an Inside Day setup on the NZDJPY daily chart. A bearish setup formed when price broke out of containment, then retested the old support area as new resistance

At this swing point level, the market churned away and created an Inside Day. That happens when the market pauses and churns away at important levels in the market, and the high and low of the day and within the high and low range of the previous candle.

Inside Days are great signals for capturing breakouts out of the hotspots on the charts. You can see the Inside Day we talked about previously seen price explode downward and hit the next key support level, which we set as our trade target level.

We used the breach of the Inside Day low as our entry trigger and placed stops at a logical price level above the Inside Day high. If price went over the Inside Day high then we don’t want to be in the trade anymore, simple. Using these levels we were able to grab an easy 3.5 return on our risk, which is excellent.

Keep an eye out for these Inside Days on your chart at the key levels in the market, and you will see how effective they can be as a breakout strategy. If you would like to learn our advanced Inside Day trading strategy then check out the Price Action Protocol Information Page

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