This setup here stood out for me here when I was scanning the markets. This is a large bullish rejection candle that has formed off a range support level. The candle also shows a failed break below the level, which re-enforces the bullish signal.
The only issue with this setup is the market is ranging, so it’s flat – it’s a pure price action play. But some good moves can come from range signals – just as long as the signal is very strong and clear like this one.
What I like about this setup is the candlestick is nice and large in range. Generally the larger candlestick signals provide better follow through. Going for a 40% retracement as the 50% trigger is just shy of being hit in a lot of recent signals.
A very nice result out of this simple price action setup. Everything wen’t fairly smoothly – just hitting my 40% entry (lucky I didn’t go with 50% otherwise the train would have left without me).
This setup offered ‘instant gratification’ which means after the trade was triggered – it moved into profit and stayed there. A nice candle-by-candle climb to the profit target.
A nice example of how simple, and effective price action trading is and why I will always be a passionate and dedicate price action trader at heart.
Senzo ngwenya
hello
can you elaborate on this as I didn’t understand. ” Going for a 40% retracement as the 50% trigger is just shy of being hit in a lot of recent signals.”
Senzo
Replying to: Senzo ngwenya
TheForexGuyAuthor
In the Forex trading course we use retracement entries with certain signals. The 50% retrace entry which is the common setting has not been triggered very much with recent signals. Lowering the retracement trigger to 40% has gotten a higher strike rate.