A Battle Station alert has come through for a bearish reversal candle that was found on the AUDNZD h4 chart. On inspection there indeed was a bearish outside/rejection candle signaling potential lower prices to come.
The setup doesn’t really look overly special just by isolating analysis to the 4 hour chart. The anatomy of the rejection candle does looks good, as its body is bearish, and the candle range is large relative to the surrounding candles.
By investigating the daily chart, we can add more value to this trade.
On the daily chart we can see price is bouncing off an important level here. If we look to the left, we can see this was a previous market structure support level which is now holding as support again.
To add even more value to a potential bearish move, we can see that the daily chart price is sitting way off its mean value – leaving a mean/price gap.
These gaps are a very strong catalyst for a mean reversion move.
So with all these points in mind, this chart looks like it is going to move down, and the 4 hour rejection candle is a good ‘early bird’ opportunity to position into a trade before the move takes off.