A nice bearish rejection candle formed at a swing level here on the EURCHF. This market had been very stale until the Swiss Bank lifted their peg to the Euro, now thankfully it’s free to move again.
These swing trades with rejection candle signals are one of the most common, and reliable trade signals.
The rejection candle here had a nice thick bearish body – which really sinks in the bearish value of the whole sell opportunity.
When you see a thick body rejection candles off strong swing levels like this, you can expect at least some price follow through.
The setup worked out well and price trickled down for the next month. EURCHF used to be a very good market today pre intervention days. It’s good to see it coming a live again.
A very large bullish rejection formed on a major weekly turning point for the NZDJPY market.
This setup communicated a lot of buying interest at the weekly support, and given the size of the setup – there is a really good chance we will see bullish follow-though on this one, as the weekly level is respected.
A really good response from this setup. Strong signals off weekly levels are really powerful, that’s why it is really important to watch these weekly levels – you don’t want to miss out on these long term bounces.
A lot of traders have trouble holding their trades long enough to profit from these larger swings, as most come from a background of scalping or day trading – being unconditioned and undisciplined to longer term trading. But you can see the rewards are here.
The USDSGD produced a really nice swing trade off a really clear level within the uptrend here.
A strong bullish bodied rejection candle tied the setup and was the trigger to get long. This area was actually a bullish hot spot within the uptrend, meaning multiple technical factors on the chart aligned together to create a high probability buy area.
The candlestick signal is the cherry on top.
The setup reacted very quickly and produced an explosive rally out of the hot spot.
These is trend trading 101, waiting for a strong signal inline with the trend, off an important level to help you get into the trend momentum.
Trend trading does have a timing element to it. A lot of guys are losing money during these nice trending conditions and getting frustrated because they get stopped out when following the golden rule “trade with the trend”.
You need to time your trend entries correctly to get the optimal entry price and catch the right part of the upward, or downward swinging motion of a moving market.
If you would like to learn more about trend trading, swing trading and how to tie it all together using price action methodologies – check out the War Room for Forex Traders – which contains our Price Action Protocol course. The ultimate Forex trading course that will teach you everything you need to know to trade using these strategies on live markets.
Until next time, good luck on the charts!