Price has smashed lower and through a key support level on the USDSGD after a large Bearish Engulfing Bar (BEEB) formed on the daily price action chart. After this bearish engulfing bar was confirmed with price breaking the low, price broke lower and made a fast and aggressive move lower that saw the recent strong bearish momentum continue.
Now that price has busted through the strong support area, this level may become a “price flip” area and look to act as a new resistance level should price rotate back higher. Price in the recent few days has found a low and started to reverse back higher so the chances are that price could move back into this old support and test the price flip level and this new resistance level could provide a solid area to look for potential short trades. Any potential trades would require high probability bearish price action trigger signals to present at this new price flip level such as the ones taught in the Forex School Online Price Action Courses.
USDSGD Daily Chart
Hi there! This is my first comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading through your blog posts.
Heya Make,
great to have you with us and enjoying what we are doing! if you want to see anything in particular or think we could do anything else please let us know!
We do have some very exciting things coming over the coming months that we think traders are going to love so keep an eye out.
Johnathon
It was a nice pin bar rejection at that key level but it went long and hit my Stop Loss.
Hello Janos,
thanks for your comment. Whilst this level was a very good one and has now held as a key resistance twice on the daily charts, it is not enough to have just a good level and that is why I always make a point at the end of the posts to say that traders need to also match these great levels with “High Probability Price Action”. I am guessing you are referring to the very small bearish rejection candle/pin bar that is touching the resistance level, but the major issue with this pin is that it is so very small and it does not meet the first main criteria of having a nose that is 3x the length of the body. See here: https://www.forexschoolonline.com//pin-bar-reversal/
This was a tiny rejection candle and what we need to see was a large pin bar sticking out and away from all other price showing us that price wanted to reverse.
If you have any other questions please let me know.
Johnathon