In contrast to a confirmed resistance or support reverse pattern, the price reject pattern is intended to give a continuation trading setup. The pattern would occur after an initial reverse went through a price point that rejected and continued the current swing – for instance break support and then have it shift to resistance and reject, continuing the sell direction.
Trading method chart reading video discussing the confirmed price reject pattern that is very useful for short option entry timing, since the pattern includes a price failure of support or resistance, combined with a momentum extreme. Also discussed is a chart misread, where a reject only might be traded directly into an underlying continuation setup.
Price action prices are chart price areas that are important for trading, because they have tested and rejected as support and/or resistance multiple times. This video will discuss 2 price action prices that were used to avoid losing trades, as a price failure entry for a winning trade, and as a partial profit target.
This facebook trading video discusses questions from 2 previous videos: (1) What is you options trade scenario – from a trading position adjustments video (2) Is the blue dot a confirmed support reject setup – asked from a price reject continuation trading video.
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