The one chart that stands out is the USDJPY, there is a large bearish rejection candle matched with a weekly resistance level, nice and simple.
On the weekly chart you can see this market is range bound overall (at the moment).
If this sell signal fires off to the downside, the weekly range could go through another cycle and give us a decent bearish move on the daily chart.
If you look to the left on the weekly, you can see each time the market has sold off this level, it has been quite violent.
A retracement pullback entry of the rejection reversal candlestick pattern would be the ‘optimal’ entry point, and give us pretty decent reward potential on the trade setup.
Weekly Resistance Holds – Trade Goes Bang!
Yep, the weekly level held here (as they usually do), and this trade rolled into the next support level fairly aggressively.
That was a nice trade and an easy 6x return for those who caught the retracement entry.
This is a good example on why you should use top-down analysis with the weekly time frame. From the daily chart perspective, this trade appeared to have very low value – but with the top down analysis, it soon was a counter trend setup that you could not turn down.
If you want to learn more about swing trading, and how to find good counter trend price action setups – feel free to look around the site here or, check out my War Room program.
Until the next trade setup – best of luck on the charts!