Learn to trade Forex & CFD's with Nial Fuller . . .
PRICE ACTION TRADING FORUM
My 3 core Price Action Setups: Pin Bar, Fakey, Inside Bar
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. In the following chart example we will take a look at pin bars occurring with the context of a trending market, my favorite way to trade them. Notice how each pin bar resulted in movement that met or exceeded the next logical resistance point, marked on the chart as “target”
Pin bars occurring within the context of a trending market on the GBP/JPY daily chart:
Fakey Setup:
The fakey setup is another bread and butter price action setup. It indicates rejection of an important level within the market. The forex market is designed to fake traders out, as 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. The chart we will look at below shows a fakey that occurred in the EUR/USD market that set off a huge down ward movement.
Nice fakey setup that occurred at a major turning point on EUR/USD daily:
Inside Bar Setup:
The inside bar is a great trend – continuation signal. 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 combined with a very strongly trending market is one of my favorite price action setups. We can see in the chart below an inside bar that formed on daily USD/JPY after a strong pin bar signal changed trend direction. This inside bar occurred at a 50% retrace level as well as a support level, whenever we get price action at a confluent level like this it is viewed as a very strong setup.
Inside bar setup on daily USD/JPY:
Further explanations of price action setups and forex trading instruction can be found in my forex trading course which comes with life-time access to our member’s forum that includes on-going trade setups and daily analysis of the major currency pairs as well as any relevant price action setups. Once you master a few solid price action setups you will be well on your way to successfully trading the forex market.
Copywrite - 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.
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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?