NOTE: I have been a little quieter than is normal in this section of the commentary over the last few days, due to the fact that I have been super busy working on a lot of things behind the scenes, one of which is the ➜ Free ULTIMATE Guide to Price Action Trading Strategies. This also comes with a Bonus 27 Page PDF Download.
If you want that PDF guide you can obviously just get it below;
USDCAD 4 Hour Pin Bar Reversal
This is an interesting pair and setup to discuss. A few days ago in the members only forum when making my market summary for members I posted this pair and in particular the daily resistance level and how it was an obvious daily resistance for traders to watch.
For those of you who watch this blog and Forex commentary regularly you will know that this play is a repeatable and high probability pattern when you use price action confirmation at the major daily levels to get into your trades.
If you look at the daily chart below; you will see that all the recent momentum is lower and price in recent times has been in a very strong push lower. After breaking through the support level price was looking to continue the move. That’s why looking to trade short, but with confirmation and using any possible price action clues or trigger signals could be a possible high probability play.
Not only would it be trading with the recent strong momentum, but also at a major daily level. Traders could also use this method to move down into the smaller time frames to look at the price action and to see if price action fires off a trigger signal just like the 4 hour chart did.
Price on the 4 hour USDCAD chart fired off a bearish pin bar reversal that was sticking up and rejecting the old support and new resistance level, presenting as a potential trigger signal for those traders wanting to get short. There was also space to move into the next candles highs where traders could ‘manage’ their trade before price possibly bounced/rebounded like it since now has.
See the charts below and if you have any questions, post them in the comments section;
Daily Chart – Key Level
4 Hour Chart – Pin Bar
Related Forex Trading Education
➜ Free ULTIMATE Guide to Price Action Trading Strategies
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