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.
That’s a wrap for ”How To Get A Read on All Candlestick Patterns Using Support and Resistance Levels .” It also means we have come to the end of our candlestick pattern series. Hopefully you’ve gained a full understanding of how to read candlestick patterns on the price charts. Do you want me to send you the latest posts to your email address inbox? Then subscribe to my mailing list and I’ll send my blog posts directly to your inbox. It wont cost you a penny.Til next time take care.
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
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.Til next time take care.
Looking To Join The Forex Trading Gravy Train?
If you’ve stumbled in here looking to join the forex trade bandwagon, here is what you need to do . First, look up Why Forex Trade Is So Popular. Next, you learn the fundamentals of forex trading by reading Forex Trading Basics – Top To Bottom Part I and Forex Trading Basics – Top to Bottom Part II .Next, you need to learn how to read candlestick patterns. They are the main feature of price action analysis And you need to know what these patterns are telling you. To be able to do that read the following on Fundamentals of Reading Candlestick Patterns, Single Candlestick Patterns, Dual Candlestick Patterns, and Triple Candlestick Patterns . Also You Need To Know Ten Of These Candlestick Patterns .
Looking to get a leg up on price action analysis,?you need to learn How to Identify Support and Resistance Levels. And if you want to learn how to interpret trading zones, read up on Identifying Dynamic Support and Resistance Levels. Finally you should know How To Read Candlestick Patterns using Support and Resistance Levels.
However, if you only want to trade once a month and watch your entry rack up huge profits over a stretch of several weeks, consult How to Spot High Probability Trades. And if you are still not sure about price action trading, find out Why Price Action Trading Still Rocks . Dont let me stop you from reading the other posts as well. But the suggested posts above are the most important posts to get you started.
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If you want to know everything there is to know about price action trading, Download for free The Ultimate Guide To Price Action Trading by Rayner Teo. This brilliant ebook will change your life. It sure did mine.
Opening Of Live Forex Trading Account
If you’re looking to open a live trading account account sign up with EasyMarkets.
But if you want to get a feel for the platform first and practice your trading strategies before going live, open a free demo account with EasyMarkets.
If you want more information about easyMarkets before opening a live/demo account Watch This Video on EasyMarkets