Today we’re going to learn three popular price price action trading strategies you can use to help you in your price action analysis. These trading setups are simple, yet effective. With a little patience and self control, you can develop a deadly forex trading edge with these trading setups. So what’re we waiting for? Let’s get started.
. Pin Bars can also be set up in the opposite direction also as long as they’re clearly defined and well projected from the surrounding candlesticks. Of course this projection suggests a strong rejection and usually occurs on the daily chart time frame.
This is an illustration of a pin bar in action.. The pin bar is triggered by the upward bullish pattern on the graphic which in turn becomes a continuation signal.
Fakey Set Up
The fakey set up has the unenviable reputation of fooling traders into believing it’s going in one and then doing a 360 as other traders push for glory in the opposite direction. This is popularly known as a false break. This phenomena really does trigger some huge moves in the forex market So if you’re just starting out as a trader keep your eyes open for this scenario.
As you can see in this graphic, the market looks like it’s in a downward pattern. Then it suddenly breaks upward past the pin bar after forming at the support level. This what you call a false break.The potential for substantial profits in this scenario are huge. The reverse also happens in a bearish pattern where the market goes bullish then swings downward at the resistance level. So you need to keep your eyes wide open for both scenarios.
Inside Bar Setup
The inside bar setup is very useful as a continuation signal. Located in front of the pin bar, the inside bar breaks out from the support level with the price climbing upwards. After a brief consolidation, an upward trend pattern breaks out, creating a strong momentum,. Inside bars are better played on daily and weekly charts..Yes, they allow for few risks, but the rewards are substantial.
As you can see, the inside bar is placed infront of the previous bar. This triggers an upward pattern, giving rise to potential profits.
Well that’s a wrap for” Three Price Action Trading Strategies To Help You In Your Price Action Analysis. These three trade setups seem very straightforward. You don’t need to clutter your chats with indicators either. Master these setups and you’re on your way being a confident and successful trader. But you will need dedication and discipline to reach that promised land.
We’ll start a 3 part series on how to trade these setups starting with the pin bar.
If you strayed in on this post and you want to know what price action trading is all about, visit my What Is Price Action Trading? post. For those curious about the forex trade or contenplating a career in the forex trade , find out Why Forex Trade Is So Popular
Till next time take care
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