Let’s see what’s happening in the markets today. Most, if not all, pairs started the week with a gap, so some decent price action may happen.
Let’s look at our notable chart for today.
CHFJPY, as you can observe, is bouncing off a strong daily level.
From February to March, three bullish rejection candles on this daily chart have appeared before price went on to form a bullish swing.
Price returned to the support last Friday but this week started with another bullish rejection candle, indicating that the support still has authority.
A market entry would be a good trade entry strategy for rejection candles. Since the rejection candle is bullish, a buy order would be logical, with a stop loss below the candle’s lower shadow.
Take note that the market structure is forming lower highs, so bullish movement might be limited.