We covered a Bullish Rejection signal that formed on the USDCHF pair last week, discussing positive points of this excellent trade setup. However, the signal was large in range and we did recommend traders use retracement entry techniques from the Price Action Protocol trading course.
The previous low retracement entry was triggered and the market built up the momentum to power upwards into higher prices to hit the 300% return target we were initially aiming for. If traders are consistent with a 1:3 target money management system, they can lose 3/4 of their trades and still break even. It’s a smart way to keep yourself ahead and protect your previous capital.
The Rejection setup is one of the most common and profitable Price Action signals that occur on the charts so keep an eye out for them.
Previous Trade Discussion
Some exciting movements across the markets last trading session. This type of activity could set some charts up for a bias change. On the usdchf the volatile movement created a bullish rejection candle signal, the long lower wick and strong close demonstrates how price moved down to a support level where price was met by bullish force. The market drove prices back higher giving us that signal candle that we can work with.
The candle is large in range, for those who are using the Price Action Protocol trading system, we recommend a retracement entry. Larger range signals tend to produce retracement opportunities, this give you a better entry price into the trade. Taking the break of the high could lead to an unrealistic stop loss size and target levels that could take months to reach to generate the proper risk reward, so retracement entry is really the only sensible option here.