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Nial Fuller

Professional Trader, Author & Coach

The Anatomy Of How I Enter Price Action Forex Trades

Spot_Trading - CopyWhat goes on inside the mind of a successful Forex price action trader as they enter a trade? What is the process they use to succeed?

This article will demonstrate five trades that were valid price action trading setups over the last two months. I will walk you through them one by one and explain to you the reasons for taking them, what the proper entry and exit parameters would have been, and why. You should use this article as a reference tool and also to learn how an experienced price action trader thinks about and trades the Forex market…

GBPUSD – Fakey with Pin Bar Setup – 18th April 2011:

This price action trading setup was a fakey with a pin bar. We can see the momentum was higher, as evidence from the 8 and 21 day EMA’s suggests. Price showed clear rejection of the horizontal level near 1.6150 on the day the pin bar formed. So, we had confluence with the existing bullish momentum, the horizontal level rejection, and a very well-defined fakey with pin bar trading strategy.

This setup had two potential entries. The first entry would have been a limit buy entry near the 50% retrace level of the pin bar. This 50% entry is an option on fakey’s with long-tailed pin bars like the one in the example below. The other entry option would have been a break of the high if the inside bar. Since the inside bar and mother bar high were so close in this example, you could have entered at the inside bar high. Normally the fakey is not triggered until the mother bar high breaks though. Stop placement would have been below the low of the pin bar if you had entered at the 50% retrace. If you had entered on a break of the inside bar high you could have placed your stop near the 50% level of the pin bar.


Achievable rewards on this setup were at least a 3 times risk winner if you entered at the 50% retrace, and at least a 2 times risk winner if you entered near the inside bar high breakout. We can see after giving us a 2 or 3 times risk win potential the market reversed sharply, this is an example of why it’s good to take a profit of 2 or 3 times risk when it presents itself, or at least lock it in by trailing your stop loss up.

This was a solid price action setup that had multiple factors of confluence supporting it, and it was very obvious; there was no guessing or hoping with this setup. We clearly identify our edge and trade it. If there is a lot of doubt or confusion, there is probably no setup worth risking your money on.

GBPJPY – Fakey with Pin Bar Setup – 11th May 2011:

On May 11th a large pin bar / false break occurred in the GBPJPY. Three inside bars preceded this false break, and the momentum was clearly lower as the 8 and 21 day EMA’s show us in the chart below. Furthermore, the pin bar showed clear rejection of the horizontal resistance near 134.00. So, we had confluence with the bearish momentum, the rejection of resistance, and an obvious price action setup.

This setup could have been entered near the 50% retrace of the pin bar, just like the setup discussed above. It also could have been sold on a break of the inside bars as price came back the other way, or the mother bar.


Now, the obvious problem with this setup was the significant support level near 130.00, which price would need to break through for this trade to have any chance at providing a decent risk reward potential. However, in the previous trade example above, the GBPUSD was facing stiff resistance near 1.6400 as well, and that trade worked out nicely. The point here is that we never really know for sure which trades will work and which will not, and while we generally do not want to sell into support or buy into resistance, sometimes if there is a very obvious price action setup with the trend, you have to take a stab since your edge is present.

Now, let’s assume this trade was a loss of 1 times risk because as we can see the market did not follow through to the downside; we are still ahead because in the GBPUSD trade above we made 2 or 3 times or risk. This is an example of risk reward in Forex trading.

EURUSD – Inside bars after false break – 24th / 25th May 2011:

On May 23rd the EURUSD created a false break “bear trap” at support near 1.4000. Over the next two days the market consolidated and formed consecutive inside bars just above this support.

We can see in the chart below that the market then exploded higher as price broke above the mother bar high on May 26th. Now, this setup was definitely more advanced because it was against the recent bearish momentum, however, given the obvious false break and the consecutive inside bars that followed, forming above support, it was a valid price action setup worth taking. There was a strong potential for a rotation higher back into value. As we can see price shot significantly higher, moving past the 8 and 21 EMA’s before stalling just below 1.4700.


This trade gave us the potential for at least a 1:2 or 1:3 winner. The stop loss would be placed just below the mother bar low and entry would need to be the high of the mother bar. This is the typical stop loss and entry placement for the inside bar setup. Once again, this trade is another find example of why taking 1:2 or 1:3 winners as they present themselves is usually the best thing to do, or at least lock in that profit; look how sharply the market reversed after offering you 1:3.

NZDUSD – Pin Bar / Inside Bar Combo Setup – 25th May 2011:

On May 25th the NZDUSD formed an inside pin bar combo setup. This is one of my favorite setups to trade as it is generally very accurate and can allow for a tight stop and large reward potential.

This particular inside pin bar came after price had rejected a strong weekly support level near 0.7750 and the 8 and 21 day EMA’s had recently crossed higher; indicating more bullish momentum was possible.

We can see as price broke up through the mother bar high it had a lot of momentum behind it which propelled it substantially higher before consolidating for a few days and then forming another pin bar before re-testing the highs near 0.8250.


This setup provided a reward of at least 2 times risk. We can see a very significant resistance level that came in near 0.8200 – 0.8250. If you zoom out and look at the monthly chart you can see this level was clearly significant, and so if you were long from the inside pin bar on May 25th, you would have considered taking your 1:2 profit near this resistance.

GBPUSD – Pin Bar Setup – 3rd June 2011:

On June 3rd a bullish pin bar setup formed in the GBPUSD that showed rejection of a significant support through 1.6300 and was in-line with the recently crossed higher 8 and 21 day EMA’s.

While this setup seemed pretty solid due to its rejection of support and confluence with the ascending EMA’s, it formed in the midst of a market that had just failed to make a new high. We can see the market failed to re-test the high at 1.6750; this indicated momentum may be transitioning from bullish to bearish or from bullish to sideways.

So, whilst this pin bar setup did have enough definition and confluence to consider taking it long, it lacked the support of a clear / directional market. Setups like these sometimes work and sometimes do not, its part of the game. As long as you are taking valid setups with supporting reasons of confluence and effectively managing your risk, you are executing your edge and should not become emotional as a result of losing a trade.


GBPUSD – Pin Bar Setup – 14th June 2011:

Finally, the last setup we will look at was a bearish pin bar that formed on Tuesday of this week (June 14th). This is a great example of how pin bars from key levels can be very high-probability trading strategies.

Note the two previous pin bars that had worked out nicely which formed at the same approximate resistance level around 1.6500 – 1.6450. This meant when the third pin bar formed we had a very high-probability setup because it formed off a previous event area and had confluence with a very significant resistance level. Even though this market is ranging and not really in a trending state, we can still use significant levels combined with well-defined price action setups to trade with. This is part of the beauty of trading with price action; it works in all market conditions.


Due to the smaller size of this pin bar you had the potential for a quick profit of 2 to 3 times risk since the stop loss required was relatively small. The support near 1.6200 made an obvious target area.


All of these trades above are examples of valid price action setups that I would have traded, and I did actually trade and profit off of some of these setups. The point here is that as long as you are executing your edge flawlessly, you are doing nothing wrong.

Now, flawless execution of your edge means you have mastered price action trading, you have a concrete and practical Forex trading plan, you are tracking your progress in your Forex trading journal, and you effectively manage your risk on every single trade you take. The examples above include losing trades that were pretty decent setups. This goes to show you that even good price action setups will lose sometimes. Because you never know WHICH particular setup will be a loser, you HAVE to manage your risk diligently on EVERY single trade you enter. Even the best looking price action setup can fail, so don’t bet the farm just because you convince yourself you are “right”. To learn more about how I trade with simple price action setups check out my price action trading course.

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Nial Fuller

About Nial Fuller

is a Professional Trader, Investor & Author who is considered ‘The Authority’ on Price Action Trading. His blog is read by over 200,000+ followers and he has taught 25,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
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  1. Georgiu

    To get there to do something good in life, you have to touch the best. Good traders exist a lot, what’s more Nial is the talent and approach of people of all levels.
    Excellent article!

  2. PHAU

    Since reading your lessons, I now understand why and how I should trade forex. Please keep that good work, you’re really changing ourlives.

  3. Hadi

    Thank you…

  4. Ahmadi Nizigiyimana

    Sir you are reaaly great in what you do.i really thank God that i was told about you by a friend of mine.i also hope to keep reading more of your work and practice more untill i get the money to subscribe into your trading course.I live in South Africa and i have been telling my friends to read about your work as well as they are into forex trading just like me.

  5. derrick

    thnks so much am gonna put more emphasis on risk reward management

  6. Roy Peters

    Great article.

  7. Teboho

    outstanding article, thanks Nial

  8. Rahmat

    Thanks Nial for the best lesson learned. Risk reward management is the key in whatever setup is so perfect. I like your phrase not to bet the farm eventhough we are very confident.

  9. FABIO


  10. Ivane Zurabishvili

    Thank you Nial, great article

  11. Shivatrader

    Thanks a lot for this article nial!

  12. Simy Sadoun

    I love the clarity and the simplicity of your lessons. Outstanding!

  13. Thabo Saul

    Thanks very much Nial for equiping us to be the best traders and follow your footsteps.

    May the Grace of God be with you and your family

  14. Puvan

    Thanks Nial, very clear explanation with the charts attached. Easily understood. Its definitely a course covered for free. I really appreciate it. Thanks.

  15. Alharami

    thank you Nail.

  16. imraan

    Thanks Nial. Your articles are really helpful. Your course is also very well priced.

  17. Sthembiso

    yvan is touched the same way I`ve been touched. Thanks Nial

  18. Zephania Omondi Kungu

    Thanks so much Forex professor Nial. These are pricely set ups! I wish to meet you some day and thank you in person.

  19. captain kleen

    Really helpful article. Just makes K.I.S.S. all the more understandable.Keep them coming!

  20. Helen

    nice one
    Thamk you!

  21. Piero

    Very beautiful and useful post. Compliments! You have the ability to touch the raw nerve of trading and show us how we can get better trader. thanks.

  22. lucky blaai

    hi Nial, Ben here in South Africa, thanks for everything, all the great articles you keep sharing to us and price action lessons, you have changed me to something I don’t understand, owh Nial, what have you done to me? profit all the way and loss not that much since I am following you, thanks my Mentor, God bless you….

  23. rajesh vishwakarma

    Nial …a very good article explaining how to think for a valid trade setup

  24. Jared

    Thanks Nial, you are building more of confidence using these price action strategies “pin bar, Inside bar and others”

  25. Travor

    Thanks Nial for the great job you’re doing by empowering traders

  26. Christou

    Step by Step I am REALLY convinced Nial’s method will be succesful for me too… The first method in 2 years of trading I found which is so conceive, very clear… all in 1 with exactly all the trading facets.

  27. Dino

    Hi Nial,
    May I know which 2 MA that you used on the charts?

  28. val

    i’m very very grateful

  29. yvan

    Nial, you should be called the Messiah of forex trading!! Your articles are GOLD!! My trading has improved tremendously thanks to your them. I just can’t believe you give all that for FREE!! You are Forever in my debts, the name Nial Fuller will forever be remembered by people like myself, you are certainly and without shadow of a doubt THE authority in the field! God bless you!

  30. deji tella

    sounds pretty technical…but great work as always..what you are doing is amazing..cheers

  31. tobyrichmore

    Great explanation,simple,clearly with high profit potency

  32. Mr lee

    One word for you nial . Superb !!!

  33. Dominik

    a true masterpiece!

  34. slivester samuel

    thanks GOD…..this is the first time i found a real profesional and real guy in a forex trading….thanks a million NIAL……ur words really motivate me after i loose so much money….


  35. Andrew T

    Great article Nial,straight up explanations of trades,It’s great!!!

  36. Arnold

    Top dog!!! Now I understand why I blew my trading account. I now ooze confidence as I have been following your blog since April 2010. Great articles mate! Keep up the good work.

  37. david

    great article nial very easy to understand.

  38. Anton

    Nial, your lesson really helps me to improve my trading skills. I appreciate articles like this one and your way how you explain trading . Thaks a lot.

  39. Brodwyn

    Thank you for this article. The point you drive about well formed setups losing being normal (along with the demonstration above) is very encouraging.

  40. Kevin

    Excellent lesson!!

    Nial you are the Grand Master of Forex trading. Numero uno.

  41. Larry Hoover

    One mo time! Thanks for these meaty goodies. Larry

  42. andrew

    hi, this is cool stuff. cheers andrew

  43. rikus


    Thank u for giving us the unending educative info
    n may god bless u always.


  44. houdini

    I am speechless! :)
    Don’t stop coaching/tutor us in the lively LTTTM forum!
    We can’t walk the trade w/o you!

  45. Ken Easton

    Hey Nial,
    Could you possible create a monthly price action article like this one showing the set ups we may or may not have entered,I found this article very helpfull,….thanks so very much for your commitment and professionalism.

  46. UBA

    Nail, I have never been so confident like this before. This post is a big eye openner. Thanks a billion times

  47. Craig

    Hey Nial,

    This article is simply brilliant!This is Price Action trading at its best,with clear and concise explanations on how to trade Price Action.You are a great mentor,thank you for sharing this valuable article with us,we are greatly indebted to you,thank you for making us better and more confident traders.God bless.

  48. Harmen

    Great article Nial. Looking forward to more vids and articles like these. Keep up the great work!

  49. VTLSK

    Thank you for the clear explanation and charts. Well Done!!

  50. Alex

    To kong! In our dialect – this is amazing!

  51. Geoffrey Irwin

    Hi Nial
    This type of article is brilliant for me. Helps to refine my trading plan and see the master at work. I learn a great deal from this type of analysis.

  52. Samuel

    Nial, these are wonderful examples and you’ve done a splendid job explaining the rationale for entry etc. God bless you.

  53. Roger

    Great Article! Thanks Nial for your sharing. From these case studies, I have reinforced my knowledge on price action and also to check on my own thinking/analysis with yours before entering into the trade.

  54. steven myers

    hey nial great article, many thanks for your efforts, just got a job with a proprietary trading firm and i’m currently using most of the things I learnt from you, did alot of backtesting just to get the confidence and discipline for my myself, really appreciate everything, stay blessed

  55. joe

    great work nial, so honest in your work recommended read.

  56. Kotijett

    thanks Nial. this is now a part of my trading tool kit as I find this valuable with keeping my charts simple.

  57. Allan

    You continue being a valuable mentor to me. great great article. highly appreciated

  58. Nortrader

    Hi Nial, I have been with you just a few weeks now and have been picking out potential trades but not always trading. I had spotted all but the GBP/JPY. This has given me the confidence that I am on the right track. The advice on the entry points I have found invaluable. Thanks a million


  59. Chanel

    Are these setups on Daily or 4hr charts?

    • nial

      daily charts

  60. Lisa

    I couldn’t agree more ~ you never know

  61. Nyoman

    Many many many thanks to you Nial, This article is a real treasure, a real diamond. You have my highest appreciation. This is just what I need, an explanation on not just the setups but the way to take the setups and the mindset behind them, with real trade examples and detailed explanations. Your sharing really brings enlightenment for all of us and me especially. Please, keep enlighten us. Wish you all the best!


  62. Shane

    Thanks again for the good advice. Someday maybe I’ll be able to aply it all to my trading.

  63. UCHE

    thanks Nial, i dont need to say more,you are amazing. may the good LORD bless you real good

  64. Sher

    Thank you Nial, this article solidifies a lot of things for me, you are a blessing to the trading community.

  65. RUDY

    Great Great Great info man!
    Thanks a lot for all your teachings and the time you
    dedicate to share this information!

  66. Kenny R.

    This is an absolute must read for any forex trader!! Great article Nial!!

  67. Mauricio

    Absolutely clear, thanks for sharing your knowledge


  68. Jason

    Nial, thanks for showing real life examples of the set ups. This is so helpful especially for the newbies.

  69. Ugo Dosh

    Hi there Nial, I’m normally very lazy at filling up my details to leave a comment at a blog post, but I could not but take the ‘stress’ to fill my details to fill this just to tell you that THIS ARTICLE IS GOLD!

    Believe me when I say that this is one of your best fx tutorial write up. I was about bombarding you with mails, as usual :-), to try to ‘pick your brain’ so as to know they xteristics of the kind of set-ups you take. Nice one mate, I’m grateful for this!

    One question though: DOES IT MEAN YOU HAVE TAKEN ONLY 5 TRADES FOR THE PAST 2 MONTHS? I mean I’m just curious to know if I’ve been over-trading by taking averagely 12 trades a month. Perhaps there are other high probability setups you trade off the intra-day charts as well?

    Thanks for this golden write-up man. I have just downloaded it to my PC and liked the article on Facebook. You ROCK!!


    As usual I can depend on you for clarity and honesty. This info is hard to come by . Your lessons are easy read and detail oriented . You always give us the whole scoop.

  71. mgp

    Nice article Master !!

    It again and again prove that we should be patient enough and wait for the perfect setup to present in the market.

  72. Lyndon

    Things are becoming clearer. Thank you Nial.

  73. Filopastry

    This article has provided great insight into correct PA trading.
    I need to learn how to take in what the chart is telling me.
    This article is from the top shelf .
    Thanks again for your hard work and constant encouragement,

  74. Walter

    Nial, always thank you from my heart!

  75. Peter Miller

    Thanks Nial, other institutions would have charged a kings ransom for this kind of information and lesson. You are indeed a good friend and warm human being and a great teacher.

  76. Igor

    Your style of trading is great. Since I began to obey your advice, my trading has significantly improved. This article is especially valuable. It can be compared to live trading session due to detailed explanation of entries, SLs and TPs. Thanks Nial.

  77. Gurpal

    Hi Nial,

    Hope you are well. Just one word to describe this is ”fantastic”.

    Thank you for all your help

    Thanks and Regards


  78. SALAMI

    Thank you for your numerous lesson. infact this is a time bomb for me because i took one of the loss trade but still made profit at the end of the week.
    i am a die hard fan of your article keep up the good work.

  79. Ricardo

    Hi Nial,

    Another great article, as usually.

    Thanks for being so helpful and patience with newbies.


  80. Manjula

    Practically very helpful and educative. Article guides trainee to how the market is watched by a professional and for getting an idea about how close you did it comparing to a professional. Thank you Nial.

  81. Jason

    Great post.

  82. King

    Hey Nial
    Reading this article, along with others, makes me feel confidence in my trade. Thank you my friend. You’re the best!


  83. jamal jber

    dear nial

    thanks alot you been a great hepful to me thanks again.


  84. Ramli

    Great article and great trade.

    Thanks Guru, full confident on your methode.

    Hope you are in good health .


  85. kumar

    Absoultley ” BRIALLANT “..this is way too good to be given as a FREE !!
    but just shows NIALL as an outstanding HumanBeing and teacher..
    i commend you …and thanks NIALL


  86. Richy

    Hi Nial. I don’t know if this is just coincidence that you posted this GREAT LESSON after our emails but either way thanks so much as usual…great stuff. Your faithful student and loyal Member…richy