This video discusses one of my favorite forex trading setups. This is without a doubt, one of the best forex price action patterns I have traded over the last 5 years, using a simple yet logical approach.
Related Trading Lessons
- Forex Pin Bar Price Action Pattern – Live Trading Setup
- Forex False Break “Fakey” Price Action Patterns
Video Synopsis – The Best Forex Price Action Patterns
In this forex trading education video I discuss the fakey setup on the 4 hour chart in the GBPUSD. The video discusses trading the fakey in the direction of the 4 hour trend. First off, to have a fakey setup we need to have an inside bar, once we have an inside bar pattern, we look for a false break against the trend direction. The “trigger” or entry signal is the move back in the general trend direction after the initial false break.
This video shows how the fakey is traded on the 4 hour chart, there were two excellent fakey setups on the 4hr GBPUSD chart discussed in this video. The setups in this video actually formed against the primary daily trend, these setups were taken in the direction of the 4 hour trend, which was counter to the daily trend at the time, or in the midst of a counter-trend pullback. Even if you miss a quality 4hr setup, its ok because they are plentiful on the 4 hour chart, especially on the GBPUSD. Understanding risk to reward scenarios means that you can have a low strike rate but still make money, so if you make 2 or 3 times your risk on every trade, you can lose the majority of your trades and still make money over the long-term. The fakey setup is one of my favorite all time price action patterns to trade, you can see in the above video exactly why I consider it to be one of the best forex trading price action patterns.