I did the weekly overcast with a simple pullback strategy to the 50ma on the weekly as a entry and target as price goes north. Cutting out all the noise. That traders bring to this simple pair.
Thus here I’ll reinforce this price direction yet again made simple But with conviction
Now we have a rejection of the high and low.
The key difference is one is real. What makes a area real and fake? A real rejection has one candle wick as superior. Ideally with a wick on both ends with one dominant. Why a wick on both nd and not a hammer or hangman.? Cuz these candlesticks don’t show a fight. Thus I don’t deem them as rejection as many literature claim as from experience I’d seen price go back and take them out thus I’d lost trade on this concept more than I won and trading is tweaked from ones experience. So I like to see a fight at a high or low within that one candle.
Now at the high we have a fake rejection. A fake rejection is when there isn’t one dominant candle at that zone. And we can expect price to return and claim a victory or take out that area. This is our first bullish signs
Next
Note we have a potential double top a m pattern here but actually we have a n pattern which is a impulse or lightening bolt.
Even though we can see a pullback at the same level
But the difference here is the reaction to the action. The bears response is weak
Let’s talk about it
When price get thrown back from an area again we should expect to see it done forcefully!
We want a quick bearish response showing current rejection.
Thus note the bears respond leaving us with a spinning candle or star these candle by itself shows no rejection. For them to do so it must be a two or three candle pattern etc red crow or evening star pattern. But we don’t have this so the star ( small body candle) stands alone here
Now after this the next candle shows weak momentum going down Cuz these candlesticks don’t show a fight. Thus I don’t deem them as rejection as many literature claim as from experience I’d seen price go back and take them out thus I’d lost trade on this concept more than I won and trading is tweaked from ones experience. So I like to see a fight at a high or low within that one candle.
Now at the high we have a fake rejection. A fake rejection is when there isn’t one dominant candle at that zone. And we can expect price to return and claim a victory or take out that area. This is our first bullish signs
Next
Note we have a potential double top a m pattern here but actually we have a n pattern which is a impulse or lightening bolt.
Even though we can see a pullback at the same level
But the difference here is the reaction to the action. The bears response is weak
Let’s talk about it
When price get thrown back from an area again we should expect to see it done forcefully!
We want a quick bearish response showing
As momentum candles appear After a fast response and after a few candles in a strong trend but note here the response it selling into resistance as the poc, moving average are there not leaving much room for momentum even if we had a better bearish response. Thus any selling in this area is only to push price higher
So we can see this potential double top as a stop and see the move as a n pattern. Thus resistance turn support.
As we move down the timeframes we can see more conviction of this. Check out the weekly forecast.
How to enter? simple as notes. Use the higher time frame weekly for the 50ma retest method as it requires more patience but give a better sl and allows us to increase in size and due to the volatility of this pair this entrance is the better play as we enter off the weekly pullback of the 50ma
Or
We can go in the lower time frame and scout for rejection of support on a timeframe higher
Ex 4hr entry daily rejection. And sl as see fit.
HOW TO TRADE LKE THEM -
Thus here I’ll reinforce this price direction yet again made simple But with conviction
Now we have a rejection of the high and low.
The key difference is one is real. What makes a area real and fake? A real rejection has one candle wick as superior. Ideally with a wick on both ends with one dominant. Why a wick on both nd and not a hammer or hangman.? Cuz these candlesticks don’t show a fight. Thus I don’t deem them as rejection as many literature claim as from experience I’d seen price go back and take them out thus I’d lost trade on this concept more than I won and trading is tweaked from ones experience. So I like to see a fight at a high or low within that one candle.
Now at the high we have a fake rejection. A fake rejection is when there isn’t one dominant candle at that zone. And we can expect price to return and claim a victory or take out that area. This is our first bullish signs
Next
Note we have a potential double top a m pattern here but actually we have a n pattern which is a impulse or lightening bolt.
Even though we can see a pullback at the same level
But the difference here is the reaction to the action. The bears response is weak
Let’s talk about it
When price get thrown back from an area again we should expect to see it done forcefully!
We want a quick bearish response showing current rejection.
Thus note the bears respond leaving us with a spinning candle or star these candle by itself shows no rejection. For them to do so it must be a two or three candle pattern etc red crow or evening star pattern. But we don’t have this so the star ( small body candle) stands alone here
Now after this the next candle shows weak momentum going down Cuz these candlesticks don’t show a fight. Thus I don’t deem them as rejection as many literature claim as from experience I’d seen price go back and take them out thus I’d lost trade on this concept more than I won and trading is tweaked from ones experience. So I like to see a fight at a high or low within that one candle.
Now at the high we have a fake rejection. A fake rejection is when there isn’t one dominant candle at that zone. And we can expect price to return and claim a victory or take out that area. This is our first bullish signs
Next
Note we have a potential double top a m pattern here but actually we have a n pattern which is a impulse or lightening bolt.
Even though we can see a pullback at the same level
But the difference here is the reaction to the action. The bears response is weak
Let’s talk about it
When price get thrown back from an area again we should expect to see it done forcefully!
We want a quick bearish response showing
As momentum candles appear After a fast response and after a few candles in a strong trend but note here the response it selling into resistance as the poc, moving average are there not leaving much room for momentum even if we had a better bearish response. Thus any selling in this area is only to push price higher
So we can see this potential double top as a stop and see the move as a n pattern. Thus resistance turn support.
As we move down the timeframes we can see more conviction of this. Check out the weekly forecast.
How to enter? simple as notes. Use the higher time frame weekly for the 50ma retest method as it requires more patience but give a better sl and allows us to increase in size and due to the volatility of this pair this entrance is the better play as we enter off the weekly pullback of the 50ma
Or
We can go in the lower time frame and scout for rejection of support on a timeframe higher
Ex 4hr entry daily rejection. And sl as see fit.
HOW TO TRADE LKE THEM -