A nice bearish rejection candle formed at a nice turning point on the Australian Stock Index (AUS 200).The reversal signal demonstrates clear rejection of higher prices and the market respecting resistance.
If we look to the left we can see the market has been moving in a ‘straight line’ fashion as it rallied without retracing.
It’s nice to see a big fat bearish candle, the strong anatomy communicates the market is ready to turn around, which is very important for the 4 hour swing trading. We don’t want to take small, weak looking reversal signals on intra day charts.
Look a bit further to the left and we can see a similar bearish reversal candle formed off this level in the recent past, and produced a very nice down move.
The Battle Station has really proven to be a powerful chart monitoring tools, as I probably would have missed this setup completely if it wasn’t’ for the alert I received on my iPhone.