sRs PRO - How to SPOT and USE rejection candles and key levels properly - March 1st 2021

So previous week started and ended from 22nd up until 26th, which means we should be covering from here to the top. And as we can see, the very first trade that we have is gold. Which was a winning one. And when we go to the actual chart, we can see a few things. Now, first of all, we can be checking levels, right? We have a trend line, and clearly the price is following this trend line. Sentiment is bullish, momentum is bullish. 2 out of the 3 are showing up. Um, the predominant color here, as we can see is bullish, which is confirming more or less everything else we've been talking about until this point. Next, the monitors are supportive. The only thing I'll be paying attention to is the 4-hour chart where we had multiple candles before that going down. When such situation happens, it's usually best for you to go ahead and Check out what's happening on the higher timeframe. Do we have any specific level? Is the price bouncing off of this specific level and then it's probably reversing to the opposite direction or is giving just a pullback? But regardless, it's all about the level once again. That being said, I would also be paying attention to one very, very simple but yet effective think in this case, and that's the horizontal levels. So clearly we can see that from that point on, approximately here, right where this spike formed for the first time, we're finding some kind of resistance on the way up. So basically the price is attempting to break, failing, going lower, not really being able to, to go below even this not intraday but inner low here, right? Because this is the previous zone and we're holding that level. Second attempt again failing but still holding the bullish pressure, and then the price is actually managing to break above, right? So this at that point starts to be confirmation that our level is indeed a good level and we should be focused When we're buying or selling that here, the price should be holding if you want to see the price continuing to the upside. So at that moment, the price is continuing higher. We got this very tiny red candle which managed to switch to the downside, turning it red, and then we have continuation up. And this is actually where the attack started. So That's the next level. Again, testing it. And then clearly with this extremely bullish candle here, we're managing to go above this zone and we're managing to go above the spike right here, which is actually the trigger for this trade. And as you can see, the price is very nicely holding Right here, even though it bounced, right, it bounced to the downside, the low is never broken, candles never turned to red again, right, we're maintaining the bullish side of this one and then we got the continuation with both targets respectively collected slightly higher. So those are the important parts on this specific trade. Next, we can go to pound franc. In this case, the situation is slightly different because even though this is in general going up, we had problems breaking above the zone. And once the actual breakout happened right here, we managed then, uh, stay above this level, right? So this is a newly formed low, and if we're going to be buying in this case, we want this price to be holding. Of course, we might be going and testing here, and now that would be, um, something for you to consider in terms of management. Do you want to be protecting below this entire zone and placing your stop loss somewhere around here? Or somewhere in the middle of that zone that was formed before, right? A bit more conservative. But in general, if we're expecting for the price to continue higher, we want to see on the specific time frame that the swings, not the lows— could be high, could be low— but the swings are holding. Now again, on the 15-minute chart, We may not really identify or classify these lows as swings precisely, but those are important levels because when we're combining them with the horizontal levels, this is where the price, after it broke, it's finding now the support. So it was previously resistance, now it's turning into supportive zone. So if we're going to be continuing higher, we want to see these levels holding. That's the first thing, right? And then also what's really important and interesting in this case is this candle right here, at least for myself. That's the moment where we're trying to go below that zone right here and we're forming this spike, okay? Even though this candle finished up as a bullish one, It is still not switching based on the SRS Pro candles, right? So once this candle managed to, uh, go ahead and close above, we're looking at this spike, and this is a rejection that the price doesn't want to be pushing lower. We have bullish momentum, and this is where we're taking this spike above, and we're starting to gain the momentum. So that would be my explanation on this one and the more important, the highlights, the keynotes of this specific setup. Okay, as we can see what happened afterwards is that we're going into new territory, attempt to break, pullback, holding. Then we're breaking above. New zone is now on our radar, right? And we're holding this newly broken high. This is also holding, and this is where we're looking at the next continuation and next continuation and so on and so far. Basically, the idea is very simple, guys, right? If we have bullish trend and this bullish trend is about to continue We want to be making higher highs, higher lows. This is how we know that the trend is being maintained. So after the first target is collected, we don't want to be exposing the remaining portion to become basically a loss here, right? So this was kicked out in breakeven. The second part, your QE for the sell. Now this one is really easy if you ask me because the price action is absolutely clear. Bearish, bearish, bearish up until this point and starting from here actually because on that part we can be arguing what's happening but from that point on, right, we see what's happening here. Extremely bearish situation. So that's one. Next, we want to pay attention to this specific zone. So on the way down, we managed to clear this entire zone, and then we got into the consolidation, tiny one, another push lower, and then the price is holding this level right here. Okay. At the previous consolidation. So basically, as per my understanding, we found new zone where the price wants to be trading, and we're holding the previous zone. So first attempt, second attempt. On the third attempt, we actually got a beautiful spike here, and then this candle is giving us the trigger. So if you're trading here with the trend line, you'll see that we actually got a break below, right? We have a slight angle here. The price is kind of contracting into this zone, and then we're attempting to go ahead and break below. Selling right here, in my opinion, is a bit more aggressive than it has to be. I would personally— I was not the person who traded this one, it was someone else from the team, but I would personally go ahead and trade right here below this newly formed low. Why? Because this is slightly more conservative. So we are attempting to continue lower, that's perfectly fine, but the price spiked to the upside, so we got rejected, right? And the logic is very simple. If we manage to continue with this bearish momentum, we should be looking at breakout below this low. Yes, you will be giving away that many pips and then you need to add this portion to your target. So from one side it's a bit more conservative, on the other hand you will require for the market to give you that many pips more compared to this one when and if this actual breakout is happening. Okay, but given all the other stuff we, we just covered And most of all, the price is holding this level and being rejected here, doesn't want to continue to the upside. Aggressive or not, it would be still making sense. And in this specific situation, I don't know if the price actually pushed higher or lower, but the conservative entry, if I would be trading it right with the breakout below here, For me, that would— I mean, if it goes up, right, that would be a stop loss. So the aggressive one in this case makes more sense because at least you will be able to cover the first part. CAD/CHF, pretty, pretty clear situation here as well. I mean, the very first thing usually when you open a new chart and Without looking at anything, okay, without looking at anything else, you can see what's happening with the color of the candles. When we are stuck in the range or consolidation of some sort, you will see blue, red, blue, red, blue, red, right? Because this is what the consolidation is. The price is switching from buy to sell mode, buy to sell mode, buy to sell mode. On a smaller degree until we finally find a breakout in one or the other direction. In this case, we're continuing up, which is now confirmed by the monitors. We can actually start looking at the indicators as well. Sentiment is there also, and the first place where we stopped for some sort of consolidation was right here. The problem here is we never managed to switch the candles to red in order to get the signal. So any other strategy might be already giving you signals here, but the momentum here was too strong. So unless you're trading something like this from that point, you will not be able to get a signal here. The signal would be coming only here after we managed to switch to the downside again. We created some kind of pullback, not consolidation in this case, but We can see where this pullback is stopping right into the previous zone, and it's rejecting the idea of continuing lower. And we have again very similar situation as with pound franc. I believe it was very huge candle, okay, showing a lot of momentum. Still red, didn't switch to blue. But look at this spike, and this spike is coming exactly from the level. Strong push to the upside. We're breaking here. If you want to be drawing trend lines, we can also see the breakout of the trend line. If you're doing the step setup, you have the breakout above the previous high. And also very important, look where this blue candle appears and where it ends. It opened and it basically closed here, which means there are no sellers pushing the price down, right? After this huge candle, we want to be finding the moment when the price is basically staying in this zone. This is the new place where we're finding the value, so we're likely going to be continuing to the upside. That's how it finished. It pushed up. Luckily, we managed to collect the first target because the stop loss was a bit bigger here. And there was no other logical protection. You could be protecting that zone, that cluster zone right here, with something like this, but this is going to be a bit more aggressive, right? Because at that moment we might be doing something like this. We've seen it many times, especially on the lower time frames. The price is going testing 61.78% approximately Pullback here, testing the previous levels of the breakout and then continuing. So you will be kind of exposed if you do this this kind of protection. But again, as we said, since the momentum is strong, we got lucky and it managed to catch the profit here before it started reversing. Then we have Ethereum. 2 sells, right? One of them losing, one of them had one profit. So Ethereum, the first sell is coming from a place where I don't like that much. And again, exactly as we mentioned before, if you don't look at these things immediately, you notice that the price is pushing up And then we start playing around, which means— I mean, the colors are changing over time, which probably gives us the idea that we're doing some sort of consolidation. And when you put this plus that, it kind of starts to feel like we had push-up consolidation and there is a good chance of continuation higher. This is without looking at the indicators, right? But when we look at the indicators, we can see that on the 4-hour chart we are extremely bearish. 1-hour chart is extremely bearish, sentiment is covering also the bearish side, and momentum is covering the bearish side. So this small portion doesn't tell us, uh, the full picture here, okay? The bigger picture is not very clear because we need to also check these 2. And when such situation is happening, my suggestion personally would be to go ahead and either skip the trade or look for not look for but apply small risk because there is something not synchronized between what you're looking at here and what you're looking at here. Okay, now that being mentioned, you can see where the trigger was and This is basically what we're looking at, right? So if we're looking for continuation lower, we can't really say that this is an ABC because the final point is lower than the middle point. So if this is your A and this is your B here, okay, and we have the C and the D, D point is actually below the B point. So that cannot be done this way. It should be done either by breaking this low or by applying the 2 trend lines in inside this— actually outside the consolidation, and then looking for the breakout point, which is right here. The candle is switching at that moment, and you're basically looking for Uh, continuation down, which unfortunately never happened. And then we have another Ethereum sell. You can see the first attempt, it was something like this, right? So we are basically selling here, false break, taking stops, and then the price is regaining the momentum. And now I'm starting to like it a bit better because Again, ignore the indicators for a second on the side and below. Consolidation, up, down, up, down, up, down, color of the candles. And then you see that the price is starting and going into bearish mode. We can see all these candles becoming bearish. Pullback, during the pullback we're also looking at predominantly bearish candles, red, and then only a few candles at the top here before it started switching. Turned into blue. So this is where we might be looking at this breakout. Okay, the candle still didn't switch. Only on the next candle we got the switch to red. And again, look what's happening in terms of price action after it broke. This red candle is basically staying right here. It managed to, uh, create Create the spikes to the upside, testing these levels. Do we want to go higher? Is that a false break? Are we going to new highs? Seems like no. This candle is holding. So now the chances are starting to increase, and the situation starts to be a bit more valid to the downside, right? After this one more candle that is holding, and as we can see. it managed to push lower, testing the previous low, going even lower, and then we got the false break. So first target right here, and then we got kicked out in breakeven. That would be all for SRS Pro. Now let's go ahead and check out, um, SRS 2. Again, you can find it right here, guys. You have SRS Pro on one tab and SRS Trend Rider 2 in the other one. We said 20 seconds, so here we start with Kiwi/Franc bullish— sorry about that— bullish situation where we have pretty— why am I not drawing— pretty strong momentum to the upside, a few consolidations on the way, right? This one, that one. But then on this part, we got a pretty beautiful ABC structure, and this is where the breakout basically happened. So this is a conservative setup. As we can see, everything is pointing up, the 3 rules, and unfortunately that turns out to be a false break because once we tested previous high, we got rejected, still holding, which means we might be playing in a range. Another attempt to go higher, still holding it. And in this case, I actually like it because if that would be our range, the way it works with ranges most of the times is that we have buffer zones on the top and at the bottom. By buffer zones, I mean you have clusters of prices slightly below the extremes. Sometimes it happens, sometimes it doesn't, but most of the times the top and the bottom of my ranges will be a zone, not a single line. And as you can see, as I drew it here, this concept is very clearly shown at the bottom. What do I mean by that? This level is being respected many, many times, but we actually have one swing point, one extreme point right here. Okay, so when this happens, you can be actually protecting aggressively, but personally, my suggestion would be to go ahead and always protect this zone. These levels right here, if you're looking for bullish scenario as in this case, these levels might be used for entries. Okay, I'm not referring to SRS per se in this case, but in general, if you have another strategy or another method of trading, these levels perfect because now you have a beautiful protection below. You know that if the price breaks below this zone and it goes below that low, you don't want to be involved. Clearly your range is going to be extended or you're going to be looking at breakout to the downside. But this is kind of an optimal situation where you might find yourself an opportunity. So that's about CHFCHF. Now Bitcoin with the recent pushes to the downside We started kind of— excuse me for a second— kind of, um, well, not, not really consolidation, more like a pullback, okay, from the previous week. And that was an attempt for this move down to be caught. What we're looking at here is a failed attempt to go ahead and continue higher. We started making lower lows. Of course, this is an aggressive setup as the dashboard is suggesting because we are in overall bullish trend, right? However, we would be aiming to catch something like this. This is where the pullback is happening. Levels on the way, very nice levels on the way. And, um, in such conditions It's good because we can see the target is actually above the previous swing. So if this is going to be working, it makes more sense because the protection is decent in a way that we're going to be reaching the target before the swing. So that's about this one. The idea with these swings, why are they important? Because Once you reach the swing, there is good potential the price is going to jump, actually bounce off of it, right? Reject it immediately and go down. So if your target is somewhere around here and you're buying here, the price comes to this zone, gets rejected, spike or whatever, and then you can be looking at push lower, something like here. But this is why it's always ideal when you're buying the dips Your target to be not even at the actual high, but slightly lower. As in this case, it was good because it's actually slightly above the low here, right? Not the actual low. Right, that's about Bitcoin. Ethereum, pretty much we covered this situation before, right, with the consolidation and all that. But here we're looking at it from a slightly different perspective, the perspective of SRS too. So the dashboard is telling us conservative sell, beautiful push to the downside, the pullbacks, and then we get the breakout again. Same story, target is coming if this is your actual swing, um, and that is the assumption that we have ABCD or ABC or double F, whatever. This is your middle point, right? So it's good because that might turn out to be a level and you want to be covering once and when the price comes to this zone. And you can see it very clearly, look what's happening, okay? This is the closing prices, this is the, the spike. Price is coming here and boom, it's spiking up. That's why when it comes to targets, we want to be making sure that Um, these levels are part of our trading plan. DAX, which failed after this amazing push lower, it started forming what was assumed to be a correction, came to this zone, tested it, which is kind of a breakout level for us, right? On the way up, this was the breakout. Now some people might be considering this one, which would also be correct. We also have levels here, but this is good for protection because at the moment of the entry that information is already available to us and we see that this zone was respected, so we can easily be placing the stop there and if it fails we don't want to be in that trade anymore, right? So in terms of the levels, this is how it went. And as we said, pushed the stop loss. And then we have the last one, which is the ORCAT. Now, for me, this is a bit more aggressive because we know the overall trend here is bearish. Excuse me. But based on all the divergences that we have from the higher time frames, I suppose we can include that as aggressive entry. Okay, so the idea here is simple. You're looking at this final ABC which was broken at that stage. This consolidation zone is good because now we know this is a strong level which could be used as protection. Basically, this is where the execution was done. All right, so that would be all for this week on SRS. If you have any questions, please leave a comment below. We will get back to you as soon as possible. If you're part of the team and the community, you can also bring your ideas or questions in the Telegram group. Guys, have a wonderful week. Bye for now.