Wow, this is just a true demonstration of how powerful price action trading can be when applied correctly to the markets.
We recently discussed a bullish rejection candle price action signal that formed on the NZDUSD daily chart, where the rejection candle was testing the breakout area of a previous swing high. This was a classic text book trade setup that has seen price explode upwards in a matter of days producing now up to a potential 400% return, all for 5 mins work.
Watch a video demonstration of this trade
Previous Discussion
Last session a large bullish Rejection Candle price action signal formed in the NZDUSD major market on the daily time frame.
It’s obvious that the trend is bullish here so price action traders should only be looking for buying opportunities. This market has recently created the higher high higher low pattern around a swing level on the chart, the signal candle did punch below the swing level, this move was rejected by the market driving prices back higher giving us our signal candle.
Due to the candle’s larger range it’s recommended traders utilize the retracement entry methods from the Price Action Protocol trading course to tighten up the stop loss so this trade has the chance to potentially return good risk/reward.