What are the bull days in the Forex market?

Consecutive up days are the basis for many stock analyses. Fading consecutive bullish and bearish days often indicates a reversal of market direction and momentum, but it’s a somewhat risky strategy. Consider a low-risk variation.

Forex trading on bullish market days

We will focus on fading consecutive up days that go against the market structure of volatility, which is why I explained the market structure of uptrends and downtrends. We will use this knowledge to find low-risk, high-reward trades.

Here are the criteria for long entry after consecutive down days in Forex

The first four or more consecutive down days mean closing below the opening price, and the second is if the market does not reach the last swing low in the market structure.

If the market does not break the last swing high in the market structure, here are the short entry criteria after successive updates: four or more consecutive updates, which means closing above the opening price, and if the market does not reach the last swing high in the market structure, you sell the tick below the next down bar. If there is an increase in volume again, you are trading the market with a downtrend structure.

What are the bull days in the Forex market?

First, you need to identify the downtrend and the main highs and lows to find four or more consecutive updates and trade in the direction of the main trend if the market does not break the recent high in the market structure. This is the daily chart of AMD. These five consecutive days of decline have caught our attention. Is this the beginning of a strong downtrend, or is it just a correction in an upward trend?

The 5-bar momentum did not reach the previous swing low, suggesting that the market was in the second scenario, which is a correction to the upside, less a bullish bar, as our setup bar noticed a slight increase in volume. Ideally, the volume should be higher to show Dominate the balls we bought the next day and put a mark on them.

Characteristics of bull days in the Forex market

The stop loss is always below the setup bar. You can take profits in several ways; I prefer to exit 50 of my trade at the top of the following series, place my stop to break even and keep tracking my stop. You can catch some giant moves if the price breaks this swing high. If the distance between your entry and the next swing high is too large or too small, be conservative and close part of your trade when it reaches a two-to-one risk-reward ratio.

Here’s the perfect setup. This is the daily chart of Nvidia. First, we identify the market structure up, with higher highs and lower lows, and notice these four consecutive bearish dates. The four push bars have not broken below the previous swing low, suggesting that this strong bearish move is just a correction in the Uptrend. This bullish bar was a setup bar.

Great bar candle setup

If I see a low-spread candlestick, I tend to ignore the setup. See here another possible setup for four straight down days. But look at the bull bar. It’s a low-spread one with wicks at both ends and low volume underneath, so remember the bull bar.

The setup bar should show momentum. This candle was very large, revealing the presence of the bulls, and I noticed this increase in volume, which is the highest volume of the last 20 days. In terms of terms, this was a great effort and great results on the day we entered the next day. Upon opening, this was the perfect setting.

Don’t wait until the bullish Forex candle’s top is removed.

Instead, you enter right when you open the stop loss below the bullish setup bar again, exit 50 of your position at the next swing high, and then move the stop loss to break even and hopefully allow the Uptrend to continue its course. You can trade the short-side swing trading setup here, PayPal on the frame. For the four-hour time frame, we first determine the market structure.

We have a clear downtrend with lower lows and lower highs. The market volatility is not very clear, as we have many gaps and notice these successive updates. The payment line has not broken 5 bars above the timeline. The previous swing high, this bearish bar, was the setup bar.

This was a relatively large candle with a wick at the top, showing a clear rejection of downward momentum. We also had an increase in volume, which was not an ideal setup because we had another bullish day with higher volume, but an increase in volume on a ray bar-like bar was still a high-probability trade.

Stop loss above the Forex setup bar.

We entered a sell trade at the next 4-hour candle, with a stop loss above the battery setup bar, and we targeted the next swing low. Here, we look at subsequent updates, but this was no longer a valid setup. Remember the market structure condition: The price broke its swing high, so this is no longer a valid downtrend.

Summary

Using market structure to filter out consecutive bullish days is a simple way to ensure this. We only take low-risk setups and stick to higher time frames. If you decide to backtest this strategy, there will be fewer trade setups.