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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Forex Candlestick Reversal Bar Trading Strategy

2011-05-10T23:34:33+00:00
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By in Forex Trading Videos Last updated on | 21 Comments

Below I talk about a Forex Candlestick Reversal Bar , one of my favorite Trading Strategy I use when trading from horizontal support and resistance areas of the daily charts. Often we see a trading range develop on the major pairs and following the simple laws of market rotation, we can trade reversal bar entry triggers from the higher resistance and lower support points of the trading range. Enjoy the forex video and remember to keep your trading simple as always.

Video synopsis – Forex Candlestick Reversal Bar Trading Strategy

In this video we are looking at how to trade forex price action horizontal levels and price reversals on the daily chart, nothing intra-day, I discuss how I made a 3 to 1 risk to reward daily time frame trade.

Only clean charts in this video, no indicators, just price bars at significant horizontal levels.

Price action actually means the activity of price or the ebb and flow of price itself, the facilitation of price from a to b then to b to c.

It is very important that people realize that applying anything over their charts is second hand lagging data. A price-only daily chart shows you everything you need to see, which is the raw price data for each day, all you should be thinking about is plain vanilla price action.

Draw levels at the start of each week and leave them on the chart until they are no longer valid.

The video shows a price bar reversal at 0.8120 on AUDUSD, we had a false break of this key level, the long tailed candle in the video is a pin bar reversal, this shows us the market is likely to reverse lower or at least consolidate.

When we have a resistance point and a price action sell signal as we did in this video it is called a confluence of sell signals, confluence of signals is what we want to see before entering any trade.

In this video I got filled almost perfectly at the next bars high because I enter certain pin bar setups at the 50% level of the range of the pin bar with a stop above the high of the pin bar. Looking to make 3 times our risk, our risk was 70 so reward is 210.

How you read the market or interpret these signals comes with experience and screen time, price action is a work in progress, you need to spend at least 10-20 minutes a day looking for setups after the daily close. You won’t get good at price action trading without effort.

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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 20,000+ students since 2008. Checkout Nial's Professional Forex Course here.
  1. phumlile March 9, 2016 at 6:32 am

    phumlile says

    thank you so much Nial,im a beginner and i have learnt a lot,i understood a lot which i failed to understand before,keep it up

    Reply
  2. Irma Reitz April 7, 2013 at 5:51 am

    Thank you Nial,
    I came across your site while I was trying to find info on the best trading tools. Wow what a find. I have been reading, studing and thoroughly enjoying learning the price action method. As others have said its great to use a clean chart. I am back demo trading after a long break and am really excited and am feeling more confident about using price action. Thanks again and kind regards.
    Irma Reitz

    Reply
  3. Josh March 20, 2013 at 6:48 am

    Always Humbled by your clear and precise teachings, so real in the market. God Bless You Nial, My Mentor.

    Reply
  4. George November 30, 2011 at 7:27 pm

    Thanks.

    Reply
  5. phillip.t April 19, 2011 at 8:49 pm

    Great video again. so easy to follow

    Reply
  6. mike March 14, 2011 at 1:05 pm

    Nial,
    Excellent explanation and education as always.
    I like the way you explain the variations
    on the basic price action theory. The confluence of signals
    you talk about in the accompanying article makes a lot of sense.
    JUst to conform: You onlu use daily charts for set and forget
    strategies and 4 hour chrts fo intraday trading?
    regards
    mike

    Reply
  7. Michael January 11, 2011 at 7:51 pm

    Hi Nial,

    Does it make a difference if the pin bar is bullish or bearish yet it still shows a breakout?

    Reply
    • nial January 13, 2011 at 7:36 pm

      no idea what you mean, please email me about this
      Nial

      Reply
  8. T. Pat August 19, 2010 at 5:50 pm

    Hi Nail
    I read your materials and viewed your videos with great enthusiastic. These indeed have “washed away” many of my poor trading practices. Thank you so much. Please keep up the good web site.

    Reply
  9. Giles April 10, 2010 at 11:41 pm

    Thanks Nial,

    That was really clear! As I am seeing the markets through the way you explain with S an R levels and Price Action Signals I am finding it much easier to handle the markets and a lot of my nerves are tailing off -! It is simple, but tricky at the same time !

    Reply
  10. Tai November 19, 2009 at 8:22 pm

    thanks nial i actuallty just got in to trading forex then i saw ur video and my confidence level increased by far i just want to ask though does this reversal bar apply to a support line as well?

    Reply
  11. Forexpreneur July 28, 2009 at 6:32 pm

    Hello Nial,

    I have been watching your videos for a while now and am impressed with your teaching style and impressed with your being humble. I am sold on price action and am sold on you being my mentor.

    I will be purchasing your teaching in about two weeks and am looking forward to learning, studying, aplying what I learned and getting some good consistent profits. I can’t wait to learn pa correctly. Everyone talks about it but there aren’t many who can explain it let along teach it. Thank you Nial.

    Alexander

    Reply
  12. Alpha July 15, 2009 at 7:52 am

    Thanks Nial. You’re price action and pin bar methodology is just superb–very simple and takes out all the noise and non-sense of trading! please keep the videos flowing….

    Reply
  13. David July 6, 2009 at 11:31 pm

    Hello Nial,

    Another great video on simple set ups!!

    3 weeks ago I striped my charts clean of everything…even my 200 ema…OMG

    Pure naked trading with Nial has changed my trading…I now have a method watching my pin bars and inside bars and I am so relaxed. The chunks of pips I am grabbing is unbelievable!

    Thanks again Nial for your mentorship!

    Reply
  14. Tony B windycity. July 6, 2009 at 5:24 am

    Hi Nial,

    I really enjoy the fact that you keep it simple mate.
    Iv’e been trading the fx market for three years blew accounts out made money blew out e.t.c. indicators are a confusion and don’t work well period.
    I can’t remember how I came by your website maybe google but what you teach is clear and precise.

    Thanks for your teaching on price action, i really believe that pa is the only leading indicator. What a relief to throw away all those indicators and have a clear screen where you can actually see price..

    I’m starting new I only have daily charts on my screen and zoom down to 4hr as my trigger chart to enter trades thats it.

    I will be purchasing your course soon, i like your methods and teaching style.

    Cheers.

    Tony B.

    Reply
  15. Casey July 5, 2009 at 9:12 pm

    Hi Nial
    Does you pin bar strategy works for currencies or is it more profitable with certain currencies?

    Reply
    • nial July 5, 2009 at 9:18 pm

      best used on the major currency pairs

      Reply
  16. Hans July 5, 2009 at 9:52 am

    You talk about EOD bars,when does this happen in a 24 hr market and is it the same for all providers?
    Love your market comments

    Reply
    • nial July 5, 2009 at 11:25 am

      End of day bars, daily chart with a new york close timeframe. As a guide, most providers are not new york close even if they say they have the setting. Tradestation is the benchmar, but its expspensive. I use metatrader and theres many providers offering different data feeds, so be carefull, just make sure the charts match up to my ones, send me a chart sample to check once you have metatader.

      Reply
  17. Doug Heath July 5, 2009 at 5:33 am

    Hello Nial,

    i would like to say how sensible and practical your trading video methods appear.Thanks again for your help.
    Doug

    Reply
  18. Lisa McGrath July 5, 2009 at 2:55 am

    go ~ Nial
    great video intro !
    Although, I’m partial to the picture with the bull :)
    love ya* Nial !

    Reply

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