AUDNZD
On the chart Australian Dollars to New Zealand created Inside Bar setup. Long white candle testing the resistance is a mother candle and another candle is completely inside it. As you can see another candle hit the bottom, so we have two possible scenarios but only one that will let us open the position:
- The candle is closed like now, that is, in the range of the mother candle. This is a signal to buy, but as it is under the resistance position is not valid.
- Candle closes below the rectangle shown in the graph, then it is a sell signal and we can open short at the market price, the stop loss above the signal-candle.
EURAUD
The pair is in a bearish trend and if currently building candle closes below support then I will search for shorts on the H4 chart after testing support from the bottom. However if rebound appears and there will be a buy signal on the daily chart then you can open long position.
USDJPY
Just as discussed on the first pair, also on the Dollar to the Yen formed Inside Bar. Here you will be able to play it in three ways:
- Breaking down, and closing the candle below the mother candle (the range is highlighted in green on the chart). Then you can set a sell limit order at 50% retracement of the signal-candle, stop loss above or the opening of the market price, according to the new rules.
- Breaking up and candle closing above the mother candle. It will be a long signal and will set a buy limit order at 50% retracement of the signal candle – and SL below or under the new rules simply open position at market price.
- Breaking upside and back to the range of the mother candle
