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Chris Capre
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Chris Capre is a professional forex, index futures and commodities trader, specializing in Price Action & Ichimoku trading. Chris applies his methods to the markets both intraday and medium term swing trading, and has been trading for over 13 years. He is also the manager for a private fund... More
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2ndSkiesForex
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Trading Price Action and Pivot Points
  • Forex Price Action Setup - Silver Forms Engulfing Bar | Sept. 12th 0 comments
    Sep 12, 2012 6:25 PM

    Silver
    After two relatively muted days, Silver has sprung to life as the metal formed a large bearish engulfing bar. However, I would look upon it more as a 2-way bar.
    Normally bearish engulfing bars can be strong reversal signals, but following a small inside bar, and with this one closing right in the middle, its less impressive.

    Keep in mind, this made an intraday high above the prior days highs but then ended bearish on the day.

    So the initial upside breakout was a fake breakout and sellers took over while current longs dumped positions. Interestingly though, after hitting the intraday low, buyers came back in and bought the metal on the cheap, suggesting they were willing to pick some up at lower prices with it closing close to the open, suggesting strong 2-way price action (hence the name)

    Best to look at it as more of a large one day range. This gives us the intraday options of playing fades of both sides prior to the FOMC meeting tomorrow where Ben and his beard speak. Expect quiet before and volatility after.

    (click to enlarge)learn price action engulfing bar 2ndskiesforex.com sept 12th

    For those wanting to learn price action trading, get access to the traders forum, lifetime membership & more, visit my forex price action course page.

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