The EURSGD has now moved lower and into the near term support level on the daily price action chart after producing a small false break pin bar. This small pin bar was making a false break of the recent swing high resistance area that was showing a clear rejection of higher prices. Price had moved out higher through this resistance area before snapping back lower to create the false break and pin bar.
It is crucial false breaks are confirmed by price moving either higher or lower through the trigger signal as I discuss in this trading lesson here; High Probability Price Action Entries. Once price confirmed this small false break, price begun it’s move lower and into the near term support level to be where it is now shown on the chart below.
If price can break this level, the next major support level for price to move into is the key support and Big Round Number of 1.72000 which has been a short term and medium term price flip level.
A lot of Forex pairs at the moment are very choppy with a lot of gaps in them. Traders need to remember to be patient and wait for the right trades to come along, rather than trading just for the sake of trading. There will always be plenty more trades, but the trick is waiting until you have an edge over the market and then pouncing, rather than trading every single setup that goes by like most traders. The market moves in ebbs and flows and where as last week was a cracking week with a lot happening and a lot of pairs hitting their key levels and firing of price action, early this week a lot of pairs are very undecided and choppy.
EURSGD Daily Chart
hi johno,
is it safe to take the small pinbar? coz the pinbar not in trend, but in sideways
I did not and would not personally take this sort of setup.
Johnathon