EURCAD Bearish Pin Bar
The EURCAD has formed a small bearish Pin Bar on the daily price action chart. This pin bar has formed at the recent daily resistance zone that has previously sent price lower. The daily chart below shows that price has previously formed a pin bar at the same resistance that sent price lower. Whilst this bearish pin bar is at the key resistance level, it is not A+ because it is not large and commanding like the best pin bars are and it would have been a much better setup if it could have closed lower and below all the recent candle highs that could possibly act as support. If price can break the pin bar low and gain a push lower, price is then trading into the Very Big Round Number (VBRN) of 1.4000 and then into the near term support around 1.3965.
EURCAD Daily Chart
AUDNZD Bearish Engulfing Bar
Recently in this blog we posted about the Bearish Engulfing Bar (BEEB) that had formed on the daily chart of the AUDNZD. You can read about the original post here: AUDNZD Fires Off Bearish Engulfing Bar. Price went onto break the low of the BEEB and has now moved lower and into the near term low support level. Price is in a solid range in this pair and traders should be mindul of where they look to play trades and also how they then manage their range trades. Range trades should be managed more tightly because they will often whipsaw around, where as trend trades are far more likely to move in the same direction for longer periods of time.
AUDNZD Daily Chart
But its obviosly uptrend?isn’t too risky to against trend?
Hello,
it is not an A+ setup and not something I am personally trading, but to answer your question about the trend; some great trading opportunities can present against the trend. Whilst trading with the trend is much the preferred play, some very solid high probability trades can be played when experienced traders understand the correct occasions. A recent example was the BEEB on the daily chart of the AUDUSD which was at a key resistance. This was against the recent bullish trend, but a high probability counter trend trade a lot of members played this setup. See here: https://www.forexschoolonline.com//audusd-daily-chart-forms-live-bearish-engulfing-bar-24th-oct-2013/
Johnathon
Hi jon, couple of questions, one I think the two pin bars pointed out in the EURCAD daily chart looks really similar and size is near exactly the same. how is the most recent one a small pin bar?
Secondly, the beeb on AUZCAD, although its commanding it hasn’t formed at a swing high like you teach, so what would make this a good setup?
Cheers Coach
Heya Darth,
both pins are small and neither were tradeable. This was simply pointing out that this new pin was forming at a level that another pin had formed at previously and it had sent price lower.
As for the AUDNZD; keep in mind that a lot of how we trade and how we trade it is not discussed in public so whilst in the babypips threads we only discuss taking engulfing bars from swing points, in the members area we take other advanced trades from other areas including break outs, continuations etc
Lastly when I am posting these they are commentary and not trade signals. I am posting them as they are happening and I am not personally trading them myself. They are simply a case of what has happened and what then may happen so this doesn’t matter if it is an inside bar or whatever even if I don’t trade the signal because they are not trading signals, it is a market commentary.
Safe trading,
Johnathon
Ok thanks for the clarification.
Very good! Thanks!