Very Clean Price Action Signals for Swing Traders – Recap
AUDCHF Buy Signals During Uptrend
After the recent event on the CHF pairs – where we see a colossus bearish power candle, the Franc has slowly be losing its epic gains, creating an uptrend on most CHF pairs.
This has given us price action traders some pretty obvious buying opportunities.
The AUDCHF pair that we spoke about earlier, produced some strong buy signals here at a nice clear-cut swing level. These rejection candles had a strong closing price for the day relative to the open, giving them some extra bullish value.
The signals followed through nicely with bullish movement without delay. The trend also offered some secondary buying opportunities as things developed.
An Indecision ‘Doji’ candle which formed close to the mean value, after a counter trend correction, offered a nice clean breakout to the high side.
Breakout Trap Trade Pushes Silver Down Dramatically
An Asia session breakout occurred here on the Silver market – which War Room traders know is a BIG warning flag that the breakout move will most likely not be sustained.
As usual the initial early session breakout failed and caved as the market moved into busier trading hours.
Generally the short trigger is when the previous day high/low is broken – confirming the breakout trap & reverse trade. We can see in the image above that short positions are already triggered because the lows were broken.
Look what happened after…
The bearish breakout trap and reverse trade setup worked out very nicely for those traders who held onto their sell positions.
There was a strong, intimidating bullish counter trade buy signal that formed straight after the bearish setup, but for those who stuck with the initial bearish trade plan, have been heavily rewarded.
Once that support level was taken out, the market started swinging down, generating lower highs and nice clean swing levels.
At each swing level was a bearish price action signal for traders to take advantage of. All of them have worked out very nicely – with the recent one still playing out and looking healthy.
CHFJPY Puts Serious Pressure on Support
An outside day formed on the daily chart of the CHF/JPY pair. This could also be viewed as a thick body rejection candle.
The market is obviously in a downtrend here giving us those lower highs. This closing price of this signal candle is right on support – demonstrating heavy bearish pressure on this level.
Given the current downtrend, and the heavy close of this Outside Day/Rejection Candle… we will probably see the level taken out.
If trading through support is a bit ‘outside the lines’ for those more conservative traders – you could wait for a short signal on the bearish side of the level as it acts as new resistance.
The outside day played out, but was a fairly slow grind. The level was broken, and then held as new resistance when retested from the underside – creating a new swing level. Price stalled here for a week.
There were some bearish rejection candles that formed as price reacted with the new resistance – but they were smaller in range and would have been considered riskier trade setups.
This trade is slowing pushing it’s way into lower prices as the JPY outperforms the CHF.
USDCHF Accelerates Higher After Bullish Signals
This was a trade setup I took personally, along with fellow traders in the War Room.
Because of the large SNB event candle, mt4 scaled the range up higher to fit it on the screen, making the rest of the daily candles look tiny in contrast.
We can see I’ve highlighted that those recent bearish candles are still pack a healthy 70 pip range, despite the optical illusion.
It’s a classic swing trade setup here – bullish response from a newly formed swing level as it holds as new support. Good uptrend momentum too and some nice rejection candles to complete the trade setup.
This market developed into a nice stable trend, dropping some more good buy opportunities along the way.
The main setup we just looked over was actually a double inside day setup, as well as a double bullish rejection candle setup. This combo setup launched price upwards nicely into new highs.
The trend remained respectful to the mean value as it held as dynamic support – which is a good indicator of trend strength.
Further upstream another double inside day trade was up for grabs, and then last along the chain of recent signals was a double bullish rejection candle signal.
There was plenty of opportunity here, and that’s the advantage of leveraging the simplicity of price action trading with these nice trends.
Becoming a minimalistic trader, using the simple, but powerful nature of price action really helps you as the trader highlight whats really going on in the charts, gives you back clarity, confidence and most important of all – good returns.
If you would like to learn more about these price action setups – all the trade setups we talked about today are covered in the Price Action Protocol Forex Course, which is part of our Forex War Room.
Good luck on the charts for next week.
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