EUR/USD Jump While USA China Trade War Warms Up
The 5%ers' Blog > Trading Analysis
A Bullish Outside Bar Candlestick Pattern in D1 Chart
Outside bar forex strategy pattern is a price action candlestick pattern.
It can be used for both reversal and continuation positions, bullish or bearish.
The last day in the past week for EUR/USD has ended as a bullish outside bar candlestick pattern.
The EUR/USD price jumped up and created a big green daily candle which engulfed the previous five days.
It happened after the escalation in the trade war between the USA and China.
In the D1 time frame chart, we can see how the big green candlestick engulfed all the previous five candles and creates a signal for buy position.
It also happened exactly as a reaction for the Quasimodo level from the 01/08 which makes it more reliable.
For now, it seems that the price tends to reach the fresh supply above which we can see also in the D1 time frame chart.
On the H1 chart, we can see the demand below.
This demand is the source of the last rally which creates the bullish outside bar candlestick pattern.
If the price retraces this demand it will be a great opportunity to buy EUR/USD at this demand.
The target for this buy position will be the supply above in the D1 chart.
This analysis is relevant for long term traders or swing trades.
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