The NZDUSD has been grinding inside a Consolidation Structure, or sometimes called simply a ‘box’ here on the daily chart.
I wouldn’t normally touch Price Action like this, as it looks very hostile, but there have actually been some good 4 hour bullish trade opportunities off the consolidation structure bottom support there, one of which I took last week.
At the market open we seen the market gap down – follow through of the heavy bearish price action we seen into last week’s close.
Now the market has settled down, and we’re starting to see Bullish Price Action come back in again and the bottom turning point here…
The Battle Station Alerted me to a Bullish Rejection Candle that formed on the 4 hour chart right on the bottom of the consolidation pattern. As I mentioned before, this area has been dropping some good buy signals
If history repeats itself here, there is an opportunity to make good return.
The bullish rejection candle is small, which is the only problem I have with it, but I already made some good returns from the previous buy signal, I am willing to re invest in this signal which has a high upside potential.
Not to mention the market gap still has not been filled for all you ‘the gap must be filled’ traders
Lets see how this one guys, hopefully it will be a nice start to the trading week.
Counter Price Action Signal Acts As An Early Warning Signal
Just a quick update on the NZDUSD situation, a large bearish reversal candle formed that the Battle Station alerted me to, that has basically created a compelling reason to exit this long trade early.
The rejection candle shows the higher has failed, created a lower high, and basically itself is a sell signal.
So pulling out of the long here, and jumping into a short if my retracement price is filled.