Price is now, as I write this for you, looking to retrace back higher and back into the daily resistance level on the daily price action chart of the Platinum market. After smashing lower and through to major support levels in the very recent times, price has now paused to potentially make a quick retrace.
Price, in recent times, has been making a strong move lower with obvious lower highs and lower lows, as shown on the daily chart below, indicating that price is trending lower.
The highest probability trades are always found with the trend because price is a heck of a lot more likely to continue back in the same direction time and time again. The other thing is that not only are the best win rates found trading with the trend, but also, the biggest risk reward trades are found trading with the trend, compared to other markets, such as range or consolidating markets.
Why is this the case? Simply because if you are going to enter a trade in a trend, the price is a lot more free flowing and there is a heck of a lot more space to trade into. You can manage that trade a lot more freely and look for a lot bigger profits.
Compare that with a ranging market or a tightly winding up market and there are often a lot of support and resistance areas and there is often a lot of traffic to deal with. Price often crawls to a halt and makes it extremely testing to manage your trade.
ALWAYS keep this in mind when trading not only with the trend, but also, in all different types of markets. For this reason, some people only trade with the trend, so that they can not only have a higher win rate, but to try and increase their risk reward.
Now that price is making a move back higher, we can keep an eye on it and keep a very close eye on the price action behavior. If price moves into the closely marked level overhead, we can start looking for potential short bearish trade setups on the intraday chart time frames, such as the 8/4/2/1 hour, and even potentially smaller if you are comfortable and profitable on time frames that small.
The important thing is that for any potential trade setup, you have a confirmed high probability A+ trigger signal like the ones we teach our members in the Lifetime Membership Price Action Course. If you have any questions about this or anything posted in today’s trade setups commentary, just pop it below in the comments section.
Daily Chart – Retrace Into Daily Level
4 Hour Chart – Looking For Short Trades on the 4 Hour Chart???
Related Forex Trading Education
– Trading Daily Chart Price Action Strategies Down to Intraday
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