Learn To Trade Price Action with Nial Fuller...
PRICE ACTION FOREX TRADING COURSE
In this Forex trading training lesson, I am going to share with you guys three of my favorite price action trading strategies; pin bars, inside bars and fakeys. These setups are simple yet very powerful, and if you learn to trade them with discipline and patience you will have a very potent Forex trading edge.
Whilst these three setups are my ‘core’ setups, there are many other versions and variations of them that we focus on in our members’ community and advanced price action trading course. However, you can learn some good basics in this article to lay the foundation for future learning. So, without further delay, let’s get this party started…
Pin Bar Setup:
The pin bar is a staple of the way I trade the Forex market. It has a very high accuracy rate in trending markets and especially when occurring at a confluent level. Pin bars occurring at important support and resistance levels are generally very accurate setups. Pin bars can be taken counter trend as well, as long as they are very well defined and protrude significantly from the surrounding price bars, indicating a strong rejection has occurred, and preferably only on the daily chart time frame. See the illustration to the right for an example of a bearish pin bar (1st bar) and a bullish pin bar (2nd bar) —>
In the following chart example we will take a look at pin bars occurring within the context of a trending market; my favorite way to trade them. Also, note that this uptrend began on the back of two bullish pin bars that brought an end to the existing downtrend.
Fakey Setup:
The fakey trading strategy is another bread and butter price action setup. It indicates rejection of an important level within the market. Often times the market will appear to be headed one direction and then reverse, sucking all the amateurs in as the professionals push price back in the opposite direction. The fakey setup can set off some pretty big moves in the Forex market.
As we can see in the illustration to the right, the fakey pattern essentially consists of an inside bar–> setup followed by a false break of that inside bar and then a close back within its range. The fakey entry is triggered as price moves back up past the high of the inside bar (or the low in the case of a bearish fakey).
In the chart below we can see the market was recently moving higher before the fakey formed. Note the fakey was formed on the false-break of an inside bar setup that occurred as all the amateurs tried to pick the market top, the pros then stepped in and flushed out all the amateurs in a flurry of buying…
Inside Bar Setup:
The inside bar is a great trend continuation signal, but it can also be used as a turning point signal. However, the first way to learn how to trade the inside bar strategy is as a continuation signal, so that is what we will focus on here, more info on the inside bar and all the ways to trade it can be found in my advanced price action trading course. As we can see in the illustration to the right, an inside bar is completely contained within the range of–> the previous bar
It shows a brief consolidation and then a break out in the dominant trend direction. Inside bars are best played on daily and weekly charts. They allow for very small risks and yet very large rewards. The inside bar strategy combined with a very strongly trending market is one of my favorite price action setups.
In the example below, we are looking at a current (as of this writing) EURUSD inside bar trade setup that has come off to the downside with the existing bearish market momentum. We can see a nice inside bar setup formed just after the market broke down below a key support level, the setup has since come off significantly lower and is still falling towards the next support at 1.2625, as of this writing. Many of our members are in on this trade as we’ve discussed it extensively in both the members forum and the daily member’s commentary.
As you can see from the three examples above, Forex trading does not have to be complicated or involve plastering messy and confusing indicators all over your charts. Once you master a few solid price action setups like the ones above and the others in my Forex trading course, you will be well on your way to becoming a more confident and profitable trader, just remember, mastering these setups will require passion, dedication and discipline.
May Special Promotion - This month I’m offering a Special Discount on Lifetime membership to my Forex Course, Live Trade Setups Forum, Daily Trade Setups Newsletter, Email support line, and more. For more info visit the Forex Course Page Here.
Author Bio: Nial Fuller is considered a leading authority on price action Forex trading. His trading philosophy is centered around simple and logical trading concepts. You can read Nial Fuller’s bio page here.
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Copyright – Learn To Trade The Market Author Nial Fuller
Most comprehensive price action chart to date…
Price action is best used with “confluent ” evidence, such as a key market level, prior price action even area, or a moving average level. Where the price action signal forms is important, the more you have to back it up as confirmation , the better.
Speechless is what I am Nial I dint think I could order the course coz the money was rare but after doubling my account with the few strategies you shared with me and the rest of the ‘believers’ then am well in my way to order it Nial so I can change fate as I am from a humble beginning down here in Africa….Thanx Nial is all I can say.
Ken
Reading a lot of your material. Nial, you started a beautiful romance between myself and price. Look forward to your mentor-ship and course down the line; mean while I will keep reading your stuff.
I came across Nial on Youtube and all I can say is WOW! I want to thank you for publishing those vidoes for free. I am NOT a freeloader and I am going to take your course within a month. But just threw $500 into a micro account and read your entire site, watched all the videos and my account is over $1500 since the 25th of Jan.! I know there is SOOO much more in the course as far as entries, exits, and stops, and that’s what I am really excited about! Tahanks again Nial and I’ll see you in the course VERY soon! Going through a divorce and can’t afford it yet LOL
I think that the knowledge about forex trading that you impart is great. Which time frame is best suited for the pin bar setup?
Michael
Hi, Daily and 4 hour is best for pins
Hi Nial,
I am using GFT trading platform which does not show it as a pin bar at all! Is it possible that different platforms could be so different? The GFT shows price open 87.33, close 85.14,
hi 87.48, lo 84.80? Appreciate your opinion, PW
We Use a DIFFERENT CHART SERVER – using the fxlite.com free demo account on mt4 for the new york style close charts. This makes only 5 daily bars appear per week, and you will have yoru signals looking like the charts we use. SO, you can trade with who you want, but WE USE DIFFERENT CHARTS, thus why i stress traders have a broker platform and a seperate chart platform to relfect what we do. Nial
Hi Nial,
How do we keep using FXLITE as a demo account with our trading? i opened one but it is only giving me one month free account.
I trade with Oanda and I use them for my charts and as my broker…….would you suggest I use a separate chart provider? (By the way, your information has helped me tremendously, I trade just the close of the daily and I am making and average of 1% a day…..Thank you!!!)
yes the fxlite.com free charts are what we use, we dont trade with them, just use the free charts on demo, very high end data feed, 5 daily bars per week, correct close for candles is important. thanks for your comment.
click file, open a new demo account.
have a good one.
i’m learning a lot on your website. i have just discovered it 2 days ago. But i feel really happy to have been able to find some set ups ands strategies like those ones
This looks awesome.
I will try everything out in my demo and give you the feedback.
Cheers
I’m also learning a lot from your website.I am very happy now becoz ur price action course is pretty simple and logical.Your material is simply awesome.I found good knowledge from your site.
Thanks Nial
Hi Nial,
With your knowledge and your teaching material you are giving me a great set of tools to improve and succeed trading the market, you have a great name of the site “learn to trade the market” you honnor it, and I am in the right way to do it!!
Thank you very much!!
José.
Simple but effective… not easy just very simple. Price action is the way to be profitable in forex trading.
fab as usual
Nial,
Do you designate a bar an inside bar based upon using the wicks of both the mother bar and the following bar or do you just use the bodies of the two bars to make this determination?
As always thank you for your help.
Ricky
Hi Nial,
Thanks thanks thanks thanks…
I never knew that price action is the best thing after…. well.. after price action!!
I am forever indebted to you!
Just traded the EURJPY pin bar reversal at 0800 GMT (22/11/10) took profit at 3 x risk and then saw the price drop to 5 x risk before consolidating!
Thanks for the top advice Nial on taking a 4 hour + view point on the markets.
nice info brother thanks alot, much appreciated
Hi Nial,
I am grateful for your the materials, its really comprehensive. I am very grateful for it. more grease to your elbow. Thanks very much.
Hi Nial,
I really want to thank you for your material on price action setup which as really help me to improve my knowledge in forex trading, God bless you and wishing you the very best in the new year and the years to come, a very big thank you.
Best Regards
Jonah (UK)
Thanks for the great info, Nial. Can’t wait to buy the course.
I really like how you analyze the market. I find it helpful, Thanks very much for materials that you send me! a good day!
Hello Mr. Fuller
Rather straight forward. Clear. Time to journal one of your primary “price action” setups. Which one? Hummm
thank you Nial, a fascinating lesson. But I want to ask how to distinguish a pattern is formed an inside bar or a fakey setup, because fakey setup also begins with the inside bar.
Thanks
There are 2 setups, Inside bar setups and fakey setups. Inside bars are break out patterns, where as the fakey is a “false break” of the actual inside bar break out. Email me fore more info on that.
Hi Nial, Brilliant as per usual!thank you sir! i’d appreciate a bit more detail on the 2 setups you refer to with Inside bar setups and Fakey setups.
I’ve been micro trading whilst trying to grasp your trading methods. I’ve made some appalling mistakes,but thanks to your generosity i am aware of what i didn’t do properly and feel much more confident about trading profitably with my meagre funds. I committed before that i will sign up for your course and attest to that promise here again. Cheers
Many Thanks,
Great info and this really is very helpful.
Short and clear, excellent.
Regards
Tomson
Hai Nial,
I re-read your articles to get a clear picture of price action setups. Thank u v much for your sincerity in helping beginners.
Rikus
Great detail Nial. Very clear and precise. Can these setups be used on a 15 TF?
Hi Nail
Thank you for the help, its really great.
Kati
no , i don’t trade small timeframes like that.
Sorry guys, just saw this beautiful article, and am ever so glad that i did. I can’t have a screen going on in the office, and i trade off Iphone (Demo a/c only). I teach on the nights and find it difficult to trade properly, but nevertheless, Nial’s teachings are made of gold. Easy to understand, the challenge is for me to apply them.
Thanks Nial!
Hi Nial
thak you very much for yr usefull info.
much aprreciated.thanks again.
nice info bro,uh ave opened my eyes down here in africa,longlive
Great material, Nial, Been trading for 6 months and lost a bunch of money. I did the fakey set up and let the trade run. up $ 3,500 over night… Yes… Thank you…. Will see ya soon…
I am new to forex trading and are grateful for these tips.
I will eventually register.
The pin bars and fakey set ups are quite interesting.
I am glad I opened your website.
Hi Nial.
In the second chart, the “Fakey” also seems to be a pin bar.
Is that further validation of a feasible trade?
Thanks for these excellent tips.
John
i am speechless.
nial you are an angel.
Nail,
Your work is very inspiring and revealing.Reading and listening to those videos marked a turning point in my trading life.
Thanks for giving it back to the society.
Besides, can you redefind in-side bar? Is the thread of the of the candle considered also or is it only the body?
This clearification will help a lot.
Thank for the good work and remain bless.
Emmanuel please email for more help on inside bars mate.
I have just stated today using using your strategies, thank you thank you.
Nial,
thank you again for your generousity in sharing this info…I am counting the days to buy your course and see what else you have to say 
Thank you for your clear explanations throughout your web-site. I have just joined and eagerly await (patiently!) my first Pin Bar trade in my demo account.
Hi Mr. Nail
This is my first time receive your email, I am so intersted in your PRice Action strategic, I Had found the right method, but becouse English is not my mother language, some time I cannot clearly understand some words/phrase, any sugestions? thanks GBU
Sukoyo (Indonesia)
Hi Niall,
Great site, I like the idea of trading only two or three strategies.
Do you find the setups work best with any particular currency pairs?
Kevin (England)
Nial,
Been a member almost a week now. WHAT A WEEK! THANKS!
Going to be a WHALE of a journey. Great feeling knowing you have an experienced captan-mentor and a crew nearby that has your same intersts and speaks your same language.
No more solidary sailing!
Really feeling the need for a course workbook with related problems and answers so that we can test and check ourselves
on our progress. Is that a future possibility? If so, I would like to be on your development and feedback team.
Thanks Larry
Thank you very much for your great articles. I have a question. Are inside bar and harami different? Do you consider a size of candle’s body for inside bar??? For example, if the mother candle has long wigs and small body (doji) but the baby candle engulfs the mother candle’s body but formed lower high and higher low. Is this inside bar???
Thank you.
descpline is good in trading as mentioned but some times a trader needs to be aggresive in case a good trend is indntified than being conservative which limits profits.
Ur price action renforces my whole idea trading fx using price action.watching closely where the inside bar price close will do a help.thanks alot.
Hyper-space knowledge. Thanks for sharing all of your articles and your experiences in the forex market.
nial,
your trading technique has been an eye opener. once i was blind but now i can see! remain bless
Hi Niall i have only been trading for a couple of months ,but have spent a lot of time scouring the net for different courses and mentors and your site tops the bill for me .I will get membership down the road when things pick up so for now i will just follow your lead Regards Billy
Thank you very much Nial
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D. Adryll said,
January 20, 2010 @ 7:41 amWhat period would you recommend for the moving averages. What works better with price action? Is moving average necessary with price action?