Moving our attention over to the GBPAUD cross pair today, looking at a potential price action trade setup. The bearish rejection candle which has formed last session (long tail poking out the top and bearish close to the body) has hinted to us that price did try to climb higher but the rejection of this move seen prices fall back down and close lower for the day.
Combining a few factors, the fact that this market is already in a downtrend, the rejection did occur at the mean value + resistance and the added bonus of price closing lower than its’s open.
Combining a few factors, the fact that this market is already in a downtrend, the rejection did occur at the mean value + resistance and the added bonus of price closing lower than its’s open.
If price manages to break the low of the rejection candle that could be used as a signal to short this market with the bearish momentum. For advanced retracement entry & stop placement techniques see the Price Action Protocol.
Update
Unfortunately price did not break the Rejection Candle low so no trade was triggered. This signal was invalidated when price breached the high of the signal.
Januario Antonio
This looks like a flag, if we do have a bearish trend to the left, here it looks like a counter trend trendline as you taught