Welcome in today’s Price Action Setups review. If you want to know where you can find the best opportunities to enter the market scan through the charts below and short description. If you want to learn something about trading using PA you can read about it here: Price Action Formations – Pin Bar, Fakey, Inside Bar. So, here we go:
Currency pair hit an important resistance line and tested it with large white candle. Another six candles contained therein and formed inside bar. You can trade here by placing sell stop order below and defending the position above the maximum. The negation of the setup will be seen if the higher wick will overtake the resistance and close above it.
Price approaches key support. You can look around and search for a clear buy signal – to play with long-term upward trend and earn big load of pips 😉
If it comes to Euro and Canadian dollar the situation at the currency pair is still rather vague. Daily candles are small, but demand can be seen (especially with recent falls). When we look at yesterday’s candle we can see a big market indecision. People using Price Action technique probably will have long positions on this pair (pin bar from February 3 – where the position would open anyway, because we noticed there 50% abolition of the pin bar and the breakthrough of its maximum). Now there is a time to wait.
On the daily chart we saw formation of two pin bars which gave us nice buy signal. You may consider opening long positions on Cable.
For long time I didn’t mention anything about the gold. But now, XAU once again came to the support line and explicitly rejected it by a pin bar (H4 chart). This clearly shows a large supply and can lead to a return to the downtrend (event bigger than the last one).