Hello all I hope you are having a great Sunday. I have taken some time to look over my charts today to get ready for another trading week and thought I would draw your attention to the very nice bearish pin bar that has formed at a key resistance level of 1.7800 on the GbpNzd 8 hour chart.
As you can see from the chart price has been quite bearish as of late. Not only has this bearish pin bar formed at a key resistance level but it also happens to be a round number which adds to the importance of this level. Of course there are no guarantees in forex, and price may just may reverse, push higher and bust through the 1.7800 level. However, the price action story here would indicate to me that there is a good chance this resistance level will hold and price may continue lower, offering some opportunity.
I plan to get into this trade at the break of the pin bar and set my stop approx 15 pips above the resistance level. The next major support level appears to be at the 1.7769 so this is where I would be looking to either take profit, or move my stop to break even and take some profit.
Hopefully there will not be a large gap when the market opens in a few hours that messes up the trade, but we will have to wait and see.
Well I hope you all enjoyed this quick post, and be sure to comment, share and like if you did as it is greatly appreciated 🙂
Once again information on this blog is meant for educational and informational purposes only, and should not be taken as trading advice.
Hello all I hope you are having a restful and enjoyable Sunday! I find Sunday’s are always great to take some chart reviewing time, and plan out your upcoming trading week. As expressed in some of my previous posts I am partial to price action trading from the Daily Charts, and more recently the 8 hour charts. “8 hour charts?”; some of you may ask. Yes, 8 hour time frame charts are now offered on the MT5 platform. I recently started trying out the 8 hour time frame to see how it compared to the daily time frame with respect to providing reliable signals and frequency of the signals.
There is a great blog post on the Forex4Noobs website which offers some insights as far as using the 8 hour time frame for forex price action trading. For those of you using the MT4 platform the blog also provides a great indicator that you can download to allow you to convert your 4 hour charts into 8 hour charts.
As noted in his blog post Nick B prefers the 8 hour charts over the daily charts because in his opinion it offers more tradeable setups without giving up the time saving and quality aspects that the daily charts provide.
In reviewing my charts today I particularly noticed the nice bearish pin bar that formed at a key level on the EurUsd 8 hour chart.
On my chart I have marked a key resistance level at 1.30000. You can see how price has retraced and extended about 30 pips past this level but then snapped back and failed to close above the resistance level. EurUsd is curently on a nice downtrend which makes this setup even higher quality in my opinion. It will be interesting to see how this setup pans out over the next day or two.
If you have never experimented with the 8 hour time frame for your price action trading you just might want to give it a try!
Once again this post is meant for educational purposes only and is not meant to be regarded as trading advice. If you enjoyed this post please, comment, share, and like!!
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