Looking over towards one of the popular commodities for the close of last weeks trading, Silver! Price has been on a tear downwards but has stalled above a Weekly support level marked on the chart, on Friday the bears tried to push the market below the weekly support level. The market rejected the move trapping those bears into a bad position, triggering bullish price movement with the candle closing as a bullish rejection candle.

The Price Action Protocol goes into more detail with regards to false breaks and bull and bear traps, but in short we can use these failed breakouts as trading signals, because we know that lower price below this level were not desired by the market. If price can break higher from the signal candle then we could see much higher prices to come of the next trading week.

Your Feedback is Important to Me - Please Submit a Comment Here...