Learn To Trade Price Action with Nial Fuller...
PRICE ACTION FOREX TRADING COURSE
Video Synopsis – Trade the 2 bar Reversals in forex
In the above forex trading educational video we are looking at the sterling yen carry trade. We had a setup form on the hourly chart at the 61.8 retracement level or the “ambush” zone. After we identify there has been a retracement, how do we trade it?
I don’t just buy the retracement outright, what I want to see is a price action setup form at the termination point of the retracement, in this case it was the 61.8 Fibonacci level. The setup that formed at this retracement level was a 2-bar reversal, I actually do not teach this setup anymore in my trading course or in my forum simply because it is too subjective, but for purposes of this video we will discuss it, traders can learn from this setup but it is not something I endorse or trade any longer.
The 2-bar reversal setup discussed in this video actually ended up being an inside bar, so when watching this video simply treat the setup as an inside bar setup instead of as a 2-bar reversal.
We want to define our target by a risk / reward ratio, we want to see a reward of at least about 2 times our risk. The bigger risk / reward trades typically come from breakouts; however the setup in this video was regressive. We are looking for a risk / reward of about 1 to 2 for the setup in this video.
This setup on the 1 hour chart actually had agreement with the 4 hour chart in that there was a pin bar on the 4 hour chart. We actually would have wanted to wait for the close of this 4 hour pin bar rather than jump in prematurely on the 1 hour chart. Check out this forex pin bar trading video on YouTube as well as my other videos.
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