We have had rejection on 13412 resistance which was previous support twice. We have also twice bounced off 50MA. We have also a 50% bounce off the Fibonacci retrace from the 28th April high
The previous 4 days have Inside bar candles forming where the candles on 6, 9 and 10th May are all within the mother candle on the 5th May. This is a quality price action setup with the trend which is now down. This setup along with the pin bar which broke up above the high of the mother candle then back down again indicates a false break out. This setup is known as the 'Fakey' setup as taught by Nial Fuller on www.learntotradethemarket.com
I would normally place a order to go short at the 50% retrace of todays daily candle. However, as the sell off was steep, i'll place a short order at 8EMA
So im going to go short because:
- With Trend
- Bearish Pin bar candle
- Inside Bars
- 2 bounces off support which was previous resistance
- 2 bounces off 50MA
- 50% retrace off the 28th April high
- 'Fakey' setup (www.learntotradethemarket.com)
ENTRY: 13271
STOP: 13410
LIMIT: 12993
i bailed out of this trade at 13066 after seeing a low at 13026. Couldnt say no again to 200 odd points after what i experienced with cable recently. Just thought the 1 and 4hr timeframes suggested we go higher
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