Price on the NOKJPY has fired off a large and obvious Bearish Engulfing Bar = BEEB on the 8 hour price action chart that is inline with the strong down-trend. This engulfing bar is also formed at a pull-back and value area after price made a quick retrace within this strong momentum lower.
In yesterday’s daily Forex market commentary that you can read at; Potential Price Action Short Trades Setup on Daily Platinum Chart I discussed how price was in a strongly trending market lower on the daily chart and how that if price was able to make a quick retrace, then you would be able to look for a potential really high probability bearish trade setup. The very similar principle applies with the Forex pair NOKJPY here.
Now that price has moved back into the overhead resistance and formed the bearish engulfing bar it presents a potential opportunity. Price is in a strong trend lower and has been for some time now so if price can break lower a move back into the swing low support could be on the cards.
There is a minor support level just below the bearish engulfing bar. This level would need to be broken and for price to break lower for any significant moves to be made. If price cannot continue the downward pressure and it attempts to make a move back higher, price will need to contend with the down-trend and overhead resistance, firstly at the high of the BEEB and then around the 14.28 level.
Do You Want to Make an 8 Hour Time Frame on Your MT4 Charts? A question I get asked a lot when I make these posts on different time frames such as 2 day charts or 8 hour time frames is how are the different time frames made? If you want to make an 8 hour chart or any other time frame for that matter, just read and implement the lesson Change Time Frames With MT4
8 Hour Chart – Bearish Engulfing Bar in Down-trend
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