In this video I provide a follow up analysis to the daily bearish pin bar setup that formed yesterday and look at some bullish patterns forming on the hourly. Because we are still in a bearish trend on the daily, but have bullish signals on the hourly, this is the time to remain neutral until the markets give clear direction
Overnight the bearish pin bar setup was invalidated. That means price broke above the high of the candle and it is no longer a valid signal. Prudent price action traders were waiting on the sidelines for price to break below the low of the bearish pin bar. Because that never happened we should not have entered a short trade and avoided an sort of losses. This is an example of why it is critical we stick to the cardinal rules of price action/candlestick trading 1)Only take trades that form off of key support and resistance levels 2)Only trade high quality, obvious, nicely formed patterns, 3)Only enter a trade once the pattern has been broken out of. There is no such thing as a short cut to profitability, and you will not make more money by breaking the rules. Be patient and disciplined!
Overnight the bearish pin bar setup was invalidated. That means price broke above the high of the candle and it is no longer a valid signal. Prudent price action traders were waiting on the sidelines for price to break below the low of the bearish pin bar. Because that never happened we should not have entered a short trade and avoided an sort of losses. This is an example of why it is critical we stick to the cardinal rules of price action/candlestick trading 1)Only take trades that form off of key support and resistance levels 2)Only trade high quality, obvious, nicely formed patterns, 3)Only enter a trade once the pattern has been broken out of. There is no such thing as a short cut to profitability, and you will not make more money by breaking the rules. Be patient and disciplined!