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PRICE ACTION
Studying price action as represented by candles can show very interesting and fascinating market behavior. Especially when combined with important times such as market openings, announcements and market closures.
MT4 candle formations used as a free trend indicator
Experienced traders know specific behavior as bull and bear traps and they can produce great trading opportunities because they mostly happen just before nice 30 to 80 pip moves in the market. Some day traders trade these moves exclusively only because of the great return on risk.
If you look at this 30 min chart of the USDCHF you will see that just before big moves that happen at Major Market openings, announcements and market closures there is a movement in the opposite direction of the breakout trend. It is almost as if someone has prior knowledge of the way the break will go tries to entice traders to trade in the opposite way. Alternatively they are transacting before the break at really good prices creating more profit. These are called traps – bull or bear traps depending on the direction of the break and are very trad-able by experienced or traders in the know.
An example before an announcement on the 1 minute chart
A slower example at the time of a major financial market opening
Why not back trade the phenomenon on historical charts paying particular attention to announcement, major financial market openings and closures. See how many Bull and Bear traps you can find using the following indicators.
- Your watch – to find the time of day this happens
- The 1 minute candle chart
Please let us know what your finding are in the Forum.
Here is a recent Double in a Day trade using this technique.
The GBPUSD 15 min chart is used:
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5 Comments
Schalk van der Merwe
June 10, 2015Look like a fantastic (Candle?) indicator.
Sorry – but I dont get it, It’s free? or do I buy it thru the link “Price action…”, watching the looong video, with the feeling, how much is it going to be?
Thanks for the efforts!
Alex du Plooy
June 10, 2015Candle charting is free – this approach purely uses candle charting
ri yu
June 11, 2015Where can I download the candle formation indicator?
Alex du Plooy
June 11, 2015http://expert4x.com/free-mt4-forexcandle-stick-pattern-identification-indicator/
[…] The Bull and bear trap moves just prior to major market opening and announcement was recently mentioned – See Bull / Bear Trap price action. […]
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