Price Action – Engulfing Bar + Pin Bar on EURUSD | Nov. 13th
NOTE: After two weeks of moving internationally, I am back so expect a full set of articles this week.
EURUSD
Ending last week consolidating in a flag pattern just above 1.2700, the Euro broke lower towards 1.2659, but failed to hold the downside, potentially forming a false break and short term bottom. During this process, it formed an engulfing bar + pin bar combo, two back to back bullish reversal signals.
Although still in a short term downtrend, the pair is attempting to bottom. Should it clear the 4hr 20ema and the 1.2733 area, it may start to show some bullish legs, challenging 1.2763 next. Above here, 1.2800 and 1.2854 are up next so bears can watch for potential price action triggers here, while bulls will want 1.2659 to hold the downside defenses.
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Hi Chris,
All the books are telling us to follow the trend.
For EUR/USD, it is very obvious a downtrend in daily.
Even in your specialist indicator (Ichimoku) also telling us is a downtrend.
Ya, in the chart we can see that there is a Bullish Engulfing Bar and a Pin Bar.
But, the bullish engulfing bar and Pin Bar doesn’t mean it’s going to reversal.
But 1 thing show in Ichimoku, the cloud seem like going to twist in daily. ( Am I finding a reason to support you ?)
But in H4, it’s obvious a downtrend. Candle touch Kijun line and rejecting. And there is a big cloud.
Thank You,
Regards,
tony
Hello Chris,
Its great to have you back:)
By the way what is a Flag Pattern?
Thanks
Hello Amis,
You can google a flag pattern as its a pretty common formation. But it is generally a continuation pattern.
Hope this helps.
Chris
Hello Tony,
This article is focused on price action so its not appropriate to discuss ichimoku methods here regarding analyzing this trade setup.
Please read the article again from a price action perspective, as I give hints as to what I’m seeing, what the trend is, and why I think it may be possibly reversing.
Hope this helps.
Kind Regards,
Chris
Hi Chris!
As a student of your price action course I took this one and I am already out of the trade (profit target hit).
At the moment I am cheering at the bears so I can get the next trade activated.
Keep up with your good work!
Regards
Bilal30
Nicely done Bilal – I have been enjoying your trades and posts on the forum, and you are definitely developing as a trader – especially if you spotted this one.
So well done on this trade muchacho. Keep up the good work and as always, good to see you here and on the course.
Kind Regards,
Chris
Hi Chris,
You are really good. The price is going up.
But in my chart I can’t see any BE and Pin Bar Combo.
You trade based on TA only? Or you combine with TA + FA?
Hello Tony,
My trades are based on TA only, no need for FA.
As to why you cannot see the bullish engulfing bar and pin bar combo – likely has to do with when your 4hr charts start.
If they differ in their start time – they will look different.
Kind Regards,
Chris
if the chart looks different, then your PA method still works? For example, if your platform is new york close, appear bearish pin bar and mine platform appear bullish 2bar reversal. Is that possible?