Price Action Trading Patterns: Pin Bars, Fakey’s, Inside Bars

Posted on

In this Forex trading lesson, I am going to share with you three of my favorite price action trading strategies; pin bars, inside bars and fakeys. These trading 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 patience, dedication and discipline.

Want More Trade Setups ?  I publish a members only daily trade setups newsletter which includes analysis on Forex, Indices and Commodities. For more info Click Here.
Special Note - During October Get 30% Off Life-Time Membership To Nial's Forex Courses, Daily Trade Setups Newsletter, Live Trading Forum & Email Support Line - Click Here.
nialfuller

About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 15,000+ students since 2008. Checkout Nial’s Forex Course here.

111 comments - Click Here to Leave a Comment

  1. john teebo says:

    Thank you Nial your information is clear and to the point. Love your website

  2. waqas says:

    Thanks Nail you share it nice information.

  3. Ivan says:

    Thenk you Nial!!!!

  4. Yousif says:

    You are the best

  5. john says:

    Thank you very much mr nial fuller you are the best

  6. terry shead says:

    very good Nial

  7. omolola adegbami says:

    Nail I always enjoy your postings. Thanks for helping me.

  8. Joel Ugbonta says:

    Thank you so much for this article. It has indeed helped me to weep away the fear of complicated market chart due to congestion of multi-indicators. I feel relieved and ready to work on myself using these strategies you have opened my eyes to. Thank you and hope to get more information from you that will keep me super-charge in this career.

  9. azrol aziz says:

    tq.. i must learn this

  10. Den Nguyen Van says:

    I love trading with price action. Thank you so much

  11. sandy lord says:

    Nial–I was preparing a talk to a local Houston Investment Group last week, outlining my evolution as a trader over the last 5 years…As I prepared it, my theme became apparent…I had gradually over time eliminated all but a few key indicators and had become a scrupulous observer of price movement and action. Slowly over time I have become better at reading the story being told by the candle charts…seeking a good definition of what it was I was doing led me to various sites and then there it was…a whole system based on Price Action and tons of material by Nial Fuller…since my talk I have been to your various sites and love your material…I look forward to immersing myself further in the insightful writings and courses you have put together….

  12. Ahmed Shafique says:

    thank uu sooo much MR.NIAL through your i take mine demo account from 3000 dollars to 12000 dollars in one month :)

  13. george erim says:

    im happy a part of nial fx family. i look forward to becoming a successful forex trader soon.thanks for your lessons.

  14. Sandile T says:

    Hi Nail, I will always follow your trading style it is really profitable, but you need only a patience, for your trading being consistency.
    I salute you Mr, you are a man of GOD.

  15. Ridwan Bs says:

    Very Helpfull information for trading with tecnikal analysis..thank you..

  16. Izu says:

    Thank you Nial. I just checked out your post on some charts and it confirms the strategy.

  17. Sandile T says:

    hi nail, it sandile again a south african citizen, you’l be surprised to tell you that reading you articles been blessing from God, why I say this is because every article you post is mana from heaven, and you’l be shocked to know that I am only nine months learning trading forex and I found your website four months ago and your three price action strategy is working marvelous on my demo account that I have made $2057 profit in only two weeks, may God bless you, thank you Mr Fuller.

  18. Eugene Rivera says:

    Hi Nial

    I just discovered your “jewel of the down under”. Your website is awesome, I have been doing Forex for many years but because of finding the right info, I put it aside but sometimes I like to read all about strategies. Signed up for your newsletter, downloaded the NY 5-day charts from Axitrader and I am looking forward to purchase your price action course. I am a technical analysis guy and love to trade off the charts. I have started to read each one of your blog posts, so I’ll be busy for a while. Because of your pinbar strategy I understand the candlestick a lot better. Price action is where the real money is. Loved your crocodile article. Thanks so much…

  19. Paul Samoey says:

    Nial,You have changed lives here in Kenya as echoed by Mr Kimotho.Your illustrations are so informative that I wonder why traders waste their times in other trading methods.I have been able to push my account from 500 USD to now 3500 USD within 3 months.Thanks Nial.keep on your good work,it’s not easy though.

  20. Patrick Seeta says:

    am amaized at the technique… wow bravo

  21. sohail says:

    thnks for ur education about price action i m from pakistan and want to met u sir

  22. sohail says:

    your are very genius i like ur technique.

  23. Isabel says:

    You have so many wonderful articles to read and, what I need is Time!
    Thanks!

  24. Tom says:

    WOW! Thanks for talking about price action charts! Will absolutely reference this in the future!

  25. Shergs says:

    Thanks Nial for the simple yet powerful explanation of these three trading setups. I think this is all I need for now to trade successfully in Forex. Thanks a million times, pal.

  26. Salami olugbenga says:

    Niall,,,,,,thaaaaaaanks ..I have been an indicator addict….so drunk in them that I lost $2000.. C c c thanks I know I can pick up again with ur price action so simple….

  27. vlad says:

    seems nice to learn this after I lost my acct.Makes me thirsty for knowledge.So bad I can not ever now afford this course :(.I’ll be rereading this again and having some questions.Blessed are those who have the money for the course.

  28. mahmood says:

    Great article. Thanks alot Nial

  29. sever g says:

    Great stuff I am glad I opened your page.Usually I am used to find 89% non sens stuff about trading.Keep up with the great work you are diferent and you will make the diference.

  30. Seyi Adekola says:

    Hi Neil,

    Great article. Thanks alotttttt :)

  31. Mark says:

    hi Nial, need to leave a post,
    your articles and strats are awesome, from what i have read thus far it has improved my trading 10 fold.
    great stuff

    regards
    mark

  32. Norman says:

    Hi Nial, your article always inspirational, have to leave a remark to say thanks!You are the best one!

  33. Ryan says:

    Nial,

    Your articles are just super. You describe in a very pointed manner using just a few words how to spot good setups.

    Thanks a ton. You rock.

  34. Peter says:

    Great! However, Nial forgets to mention one can have lots of whipsaws on the daily too! Trading options in my view, is the only way to reduce the R/RW on a trade, and sleep well!

  35. Tunde R. says:

    thanks alot Nail, am learning forex again in a new dimesion. but just a little question, how many candle bars make up the
    fakey setup.
    hope to hear from you soon.

    1. Nial Fuller says:

      Email me for more information Tunde

  36. Thomas says:

    I have traded for some time, but still had a couple of questions. Then I found this website and I got answers to my questions. Thanks Nial ! I have allready improved my trading skills.

  37. ebere john says:

    Thanks Nail for ǎ̜̍ wonderfull lesson, Reading your articles about price action has given my trading an edge, I understand the pin bar setup so I НªvΣ τ̅☺ master it properly, then I need more light on the fakey setup must it consist of ǎ̜̍ inside bar then ǎ̜̍ pinbar?

  38. Shingam says:

    Great Nial, Thank your very much for your simple yet valuable advise

  39. Adnan says:

    Love U Nial Fuller Gud Bles u :)

  40. ace says:

    genius, is making complicated things simple, guess u fit right in.

    thanks

  41. sonny says:

    Lord Fuller has a nicer ring to it…… :)

  42. Richard says:

    Nial, having discovered your site.
    I have to start caling you Sir Nial, thank you for the heads up, simple and clear.
    Regards,
    Richard

  43. quanghieu says:

    Thank you . I have learnt a lot knowledges in this wed . I hope I will find many price action trading . I like this wed so much .

  44. sunny says:

    great plz ur just wonderful its working may God bless u

  45. sunny says:

    please i want to know more

  46. Sione says:

    Am very thankful that come across this site and be a student of yours. How-much-more if I sit and learn from your workshop. Please let me know if I can see you

  47. Johnpeter says:

    Someone just introduced me to the site. I wonna stay here and learn :)

  48. userkami says:

    Nail,
    I found good knowledge from your site.
    Thank you very much.

  49. Anne says:

    Nial,

    The strategies that you have shared look great but just wondering how am i going to monitor the pattern formation since it is suitable to trade in a longer timeframe? It seems i have to sit in front of the computer for the whole day or even few days just to wait for it to form or else most of the times i will miss out the trade opportunities.

  50. Betty says:

    Nial,

    I am reading this article the third time round. Sometimes I can see an inside bar but where the tail of the inside candles protrudes a little outside the mother bar. My question is should i still consider this an inside bar or its not?

  51. Jones says:

    Hi Nial,

    I find your info educational but I’m more of a stocks trader and does your resources apply to stocks as well? THanks in advance!

  52. API says:

    Thank you very much Nial :)

  53. Billy says:

    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

  54. ponfa longtau says:

    nial,
    your trading technique has been an eye opener. once i was blind but now i can see! remain bless

  55. William says:

    Hyper-space knowledge. Thanks for sharing all of your articles and your experiences in the forex market.

  56. Akin olu says:

    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.

  57. maviiri godfrey says:

    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.

  58. Naomi says:

    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.

  59. Larry H. says:

    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

  60. Kevin says:

    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)

  61. Sukoyo says:

    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)

  62. Jenny says:

    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.

  63. Vickie says:

    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 :)

  64. Allan says:

    I have just stated today using using your strategies, thank you thank you.

  65. Emmanuel U says:

    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.

    1. nial says:

      Emmanuel please email for more help on inside bars mate.

  66. moses says:

    i am speechless.
    nial you are an angel.

  67. John Learmonth says:

    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

  68. Janet Bagumira says:

    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.

  69. Joseph says:

    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…

  70. enock says:

    nice info bro,uh ave opened my eyes down here in africa,longlive

  71. krastev says:

    Hi Nial
    thak you very much for yr usefull info.
    much aprreciated.thanks again.

  72. Sanjay says:

    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!

  73. Kati says:

    Hi Nail
    Thank you for the help, its really great.
    Kati

  74. Paul says:

    Great detail Nial. Very clear and precise. Can these setups be used on a 15 TF?

    1. Nial says:

      no , i don’t trade small timeframes like that.

  75. rikus says:

    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

  76. Tomson says:

    Many Thanks,
    Great info and this really is very helpful.
    Short and clear, excellent.

    Regards
    Tomson

  77. Alex says:

    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

  78. eric says:

    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

    1. nial says:

      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.

  79. Galen says:

    Hello Mr. Fuller

    Rather straight forward. Clear. Time to journal one of your primary “price action” setups. Which one? Hummm

  80. Florin says:

    I really like how you analyze the market. I find it helpful, Thanks very much for materials that you send me! a good day!

  81. Tony says:

    Thanks for the great info, Nial. Can’t wait to buy the course.

  82. Jonah says:

    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)

  83. Austin Osaji says:

    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.

  84. dafcreation says:

    nice info brother thanks alot, much appreciated

  85. Ezzywave says:

    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.

  86. Gildo says:

    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!

  87. Ricky says:

    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

  88. gg says:

    fab as usual

  89. Doug R says:

    Simple but effective… not easy just very simple. Price action is the way to be profitable in forex trading.

  90. Jose Maria says:

    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.

  91. Thrinethra says:

    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

  92. Gildo says:

    This looks awesome.

    I will try everything out in my demo and give you the feedback.

    Cheers

  93. Eugene says:

    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

  94. Jesse says:

    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!!!

    1. Nial says:

      5 daily bars per week, correct close for candles is important.

  95. Tom says:

    Hi Nial,

    How do we keep using meta trader as a demo account with our trading? i opened one but it is only giving me one month free account.

    1. nial says:

      click file, open a new demo account.
      have a good one.

  96. Phil White says:

    Hi Nial,
    I am using a meta trader trading platform which does not show it as a pin bar at all! Is it possible that different platforms could be so different? The platform i am using shows price open 87.33, close 85.14,
    hi 87.48, lo 84.80? Appreciate your opinion, PW

    1. nial says:

      We Use a DIFFERENT CHART SERVER – using 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

  97. Michael D says:

    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

    1. nial says:

      Hi, Daily and 4 hour is best for pins

  98. Jeff W says:

    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

  99. Galen Tarrence says:

    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.

  100. Kennedy Kimotho says:

    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

  101. tyrone kimble says:

    Most comprehensive price action chart to date…

  102. D. Adryll says:

    What period would you recommend for the moving averages. What works better with price action? Is moving average necessary with price action?

    1. Nial says:

      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.

Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

Copyright 2008-2014 Learn To Trade The Market
legal