Here’s a Video That Shows You How To Trade Forex with The Pin Bar Price Action Trading Strategy. This Videos Shows How I Use the Pin bar and Inside Bar Fakey Reversal to make what I call the” 3 tier ” confluent trading entry. You May Also Like to Read This Related Article – Pin Bar Price Action Trading Here
In the above price action forex trading strategies tutorial video, I discuss how to use price action to trade with the dominant trend using the pin bar and inside bar fakey reversal setup with confluence to make a high probability entry on the GBPUSD 4hr chart.
We first look to establish what the direction of the dominant trend is; in this case the trend was down. Next we are going to look for significant horizontal levels in the market, or areas were price has bounced from numerous times; I refer to such areas as “hot points” in the market. We next look for price action signals as a third form of confluence to “confirm” our entry decision into the trend.
In the video above there were a series of rejection candles, these are candles with long tails that are obviously showing rejection of a significant horizontal level. We want to see the market closing “off the line”, meaning we want the close of these rejection candles to be on the side of the horizontal level that is in the direction we are looking to enter.
I made a 4 to 1 profit on this trade setup, meaning I profited 4 times my risk. I entered on a break of the low of the price action setup and then placed my stop just above the high, initially I aimed for a 2 to 1 reward but than once the market continued lower I became increasingly bearish and decided to trail my stop down to break even and then down to lock in 4 times my risk.
Profit is measured in risk to reward scenarios, not in pips. You calculate your potential profit on each trade as a multiple of your risk; you ideally want at least to double your risk or a reward to risk of 2 to 1, the higher the better.
Effort and on-going study are required, some price action setups are very consistent, not all of them, but they do work very well; trading is not a get rich quick scheme. This is an on-going project requiring passion with a longer-term outlook, it can be done, plenty of people do it, however plenty also drop off the radar mostly due to greed.