In this article, I will share with you my three favorite types of price action patterns, namely Pin bars, Inside bars and Fakeys. These setups are simply very powerful and if you learn to deal with them disciplined and patiently, you will have a very solid advantage.
Pin Bar Setup
Pin Bar is the main weapon when I trade forex. It has a very high accuracy in a trending market and especially when it occurs at the confluence of signals (confluent). The Pin Bar that appears at important Support / Resistance levels is usually a very accurate signal. The Pin Bar can also be applied at the tuning wave, as long as it is “easy to spot” and protrudes from the nearby candles, indicating a rejection of the price is happening, and better to use. in the Daily chart. Take a look at the illustration next to a falling Pin Bar and an increased Pin Bar
In the example below, we will see the appearance of Pin Bar in the trending market. And notice that this uptrend starts after two Pin Bars that have set the end for the previous downtrend.
Fakey is another Price Action pattern that has great power when trading. It shows a rejection at an important level in the market. Normally, the market will follow a trend and then reverse, and “kill” all the small investors because the “Big” push prices in the opposite direction. Fakey can recognize those big moves on the Forex market.
As shown in the illustration, the basic Fakey pattern will include a Inside Bar pattern followed by a False Break of that Inside Bar and close within that candlestick area. Enter the order in the form of Fakey when the price moves up and beyond the highest point of the Inside bar (or The lowest point in case Fakey decreases)
In the chart below, we see the market is moving higher before Fakey appears. Remember that Fakey is a False Break of the Inside Bar before.
Inside Bar Setup
Inside Bar is a good signal for the continuation of the current trend, but it can also be used as a reversal signal. However, first we will learn Inside Bar trading is a continuation signal. As illustrated below, the Inside Bar is completely inside the previous candle.
It shows a brief accumulation and then breaks in the direction of the market right now. Inside Bar is best used on daily and weekly charts. It allows you to have a great reward (Reward) but comes with a very small (Risk) risk.
In the example below, we consider the Inside Bar pattern in the EURUSD pair that has resulted in a sharp decline along with the available downside force of the market. We see the Inside Bar appear as soon as the price breaks down of the critical support level, and then it makes the downtrend more pronounced and the price drops to the next Support near 1.2625.
As you can see from the 3 examples above, forex trading doesn’t need to be complicated or just tell the indicator on the chart. Once you’ve mastered some of the Price Action models like the ones above, you’re on your way to becoming a confident and profitable trader, but remember, mastering them requires passion. , devoted and highly disciplined.
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