Video Synopsis – Forex pin bar setups ahead of FOMC – 4-29-2009
In the above video we are looking at two strong pin bar forex setups on the GBPUSD and AUDJPY daily time frame charts.
We can see the GBPUSD had a large pin bar reversal, two consecutive pin bar reversals in fact. In this video we had a bullish pin bar reversal; this is a candle with a long lower tail that closes well off its low, this one spring boarded higher into the FOMC news release.
On the AUDJPY we had a false break signal; one of my favorites. We had multiple inside bars and then the tail on the candle in discussion probed below the low of the large outside bar’s support level at 68.00 then rejected up higher, a very clean false break setup, I was long on the close of this rejection candle. I was looking for a test of 70.35 or higher if the FOMC number came out higher.
*Update* - Price did indeed push past 70.35 after this video was made, it actually pushed up to 76.00 before experience any significant retracement.
Now, when we see any form of false break in the market, it really is just stop hunting from the bigger market players. They “shimmy” the smaller traders out and then push prices back the opposite direction.
We are just reading raw price action in this video. Check out our live member’s forum for more information, see you soon, take care and good trading.