Today I wanted to share 2 quick trade setups with you. These setups are from earlier this week.
I am a big proponent of watching support and resistance levels and waiting for reversal or continuation patterns at these levels. The levels become even more important when we have various confluences coming together. Once you have multiple factors coming together at a level, these trades turn into really high probability trades or what I like to call “The Money Trades”.
Trade 1: The first setup involves rejection of the 80 level at the beginning of the European session and then a retest and rejection of the same level. We see a pin into the 1.1280 level where the price is not able to hold below this level. Then the buyers coming into the market as can be seen by the strong green candle and buying volume. The price runs all the way to the 1.1380 level, where it puts in another strong rejection pin. The entire move was over 100 pips with the trade providing an opportunity of a tidy 95 pip profit.
Trade 2: The second setup occurred on the same day. This setup again has multiple factors coming together, making it “The Money Trade”. The nice pinbar shows a good rejection. It sets up at the 80 level which is a level where we normally see price reaction. The 80 levels are psychological support and resistance levels and you’ll (generally) see price react at these levels. The 1.1380 level is also a 4 hour resistance level where price reversed the last time so we can expect a reaction there again. The rejection pinbar is confirmed by another pinbar with a strong close to the downside, making it a good reversal pattern. All in all, a great “The Money Trade”. The price then drops 120 pips allowing for an opportunity to book a nice profit.