This trade did not turn out exactly the way I thought, even though the swing low held up nicely as the stop. Usually a rejection candle is going to be the end. In spite of a bit of a pullback, it did take off, and as you can see by the chart the price is camped exactly on top of the MR1, which is the target. It will probably continue higher, but the point is a nice simple seup like this yielded 100 pips over night.
image upload
image upload
I'm going to get into rejection candles in the price action series, but here is an appetizer.
Notice the long wick on the candle that I circled with the oval. That is an indication the trend has come to an end. I also drew an arrow to a similar candle. I cheated and took note of the fact that price just broke under the level kijun and just above the cloud. The DOWN had not really been that strong to that point to indicate to me it was time to reverse. The circles one has a longer wick sitting on top of the cloud. Just in case I am wrong, then the stop is set for that swing low.
The pair figure to eclipse the recent swing high, as the SD channel would indicate. It is an uptrend, overall, so that also indicates that swing high will be broken. Once it is broke, there would also be quite a few pips to be gained from that point because of the nature of the break of the swing high. As a rule you can measure the distance from the swing high to the swing low, then add it to the swing high and that is the proximity of the next leg. The MR1 at 1.60623 is the next reference point beyond the swing high, so it makes for a conservative target.
image upload
Notice the long wick on the candle that I circled with the oval. That is an indication the trend has come to an end. I also drew an arrow to a similar candle. I cheated and took note of the fact that price just broke under the level kijun and just above the cloud. The DOWN had not really been that strong to that point to indicate to me it was time to reverse. The circles one has a longer wick sitting on top of the cloud. Just in case I am wrong, then the stop is set for that swing low.
The pair figure to eclipse the recent swing high, as the SD channel would indicate. It is an uptrend, overall, so that also indicates that swing high will be broken. Once it is broke, there would also be quite a few pips to be gained from that point because of the nature of the break of the swing high. As a rule you can measure the distance from the swing high to the swing low, then add it to the swing high and that is the proximity of the next leg. The MR1 at 1.60623 is the next reference point beyond the swing high, so it makes for a conservative target.
image upload
