Watch Breaks Against Bias for Failure Opportunity

 

Within hours of publishing last week's article, I received contact from two readers who both had identified similar opportunity within other forex pairs.

First, see last week's article here if you missed it: http://yourtradingcoach.com/trading-process-and-strategy/feeling-joy-when-i-look-at-this-price-action/

And let's check out the followup…

First was a twitter message from AC:

@YTCtrading Aussie/USD this morning πŸ™‚ Same same but different! πŸ™‚

 

I'm not 100% sure of the timeframe that AC was looking at. I assume it was the 1H; the same as in the article. And upon opening the AUD/USD 1H chart it just stands out beautifully.

Watch breaks against bias for failure opportunity

 

And following shortly after was an email received from PK. Here's an extract from the email:

Funny thing, timing.

I read your email this morning and a few hours later I noticed cable had climbed back up to resistance (prior day high) and quickly retraced, into this weeks down trend.

A few bars later, it's there again and I note:

1. Market is struggling to find any more buyers

2. If price has failed to do something twice (break the resistance), then it’s probably going to do the opposite

3. Not a bad 'sell signal' trigger to use (1 hour candle bar format)

Time to put in a sell order, as there is multiple reward potential, if price can get back to the low of yesterday

There is a 1:1 or thereabouts, if it only makes it down to today's lows (see attached)

 

Here's a cropped version of the attached image, with some added notes:

Watch breaks against bias for failure opportunity

 

Thanks to both AC & PK. Great observations!  πŸ™‚

Happy trading,

Lance Beggs


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YourTradingCoach - Admin

3 Comments to “Watch Breaks Against Bias for Failure Opportunity”

  1. Mahesh says:

    Hi Lance,
    a little confusion: This post is from July 2015, and the post you refer to as “Last week’s” is from August 2014.
    Regards
    Mahesh.

    • Lance Beggs says:

      Hi Mahesh,

      That is very observant. πŸ™‚

      The first article, “Feeling Joy when I look at this PA”, was originally posted on the 8th August 2014. It was sent out via the newsletter on this date as well.

      Then on the 3rd of July 2015 it was resent via the newsletter. It’s not often that I “recycle” an old article. Just maybe once or twice a year when life gets in the way and doesn’t provide me with time to write something new. But this was one of those times. The second article, “Watch breaks against bias”, dated 10th July, was in response to feedback from the 3rd July reposting.

      Cheers,
      Lance.

  2. Mahesh says:

    Thank you for the reply Lance.

    That clears the confusion πŸ™‚

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