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EURAUD Price Action Reversal Sell Signal – Swing Trade

euraud swing trade

The EURAUD market has been dropping lower highs on the 4 hour chart as it progressively weakness, swinging down into lower prices.

The daily chart also is dropping below support levels and look quite bear heavy. The daily chart is testing resistance now, which corresponds to the intra day swing level I have marked on the chart above.

The 4 hour chart shows the better downtrend swinging structure, and we’ve just got a 4 hour bearish rejection candle sell signal form here –  terminating  the up move, and communicating higher prices are not favored here.

The rejection candle has been open for a couple of hours, and is offering a retracement entry setup. If this price action reversal signal follows through with a bearish move, we may even see a sell signal on the daily chart.

Lets see how it goes.


Dominant Trend Takes Over

stop out

So the trade didn’t end up working out. There was no bearish response from the setup and the dominant daily uptrend on the EURAUD daily chart ended up taking over.

This is why it’s important to use excellent money management all the time. I am not ashamed to post a losing trade, as it is part of Forex trading.

If this 4 hour signal kicked off a bearish move, it would have most likely produced large reward.

Now just waiting for the next signal 🙂

Dale Woods

Dale Woods

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.