Below is a Price Action Forex Trading Strategies Video Tutorial – Looking at the GBPJPY 4 Hour chart, I talk about using the 3 step filter process for finding Forex trades with a strong confluent “hot point” which produces high probability forex trades, and good risk reward trade setups.
Video synopsis – 4 hour GBPJPY price action at resistance level
This video discusses a 4 hour GBPJPY pin bar reversal setup. We are only using plain vanilla price action on the chart in this video, no indicators or hype, just horizontal lines, candlesticks and price action that has occurred on the 4 hour interval of the GBPJPY.
The GBJPY provides some very good intra-day trades from time to time; however it is important to not over-trade.
In this video we are first going to mark the “hook” or “swing” points in the market, you will notice the market will often move from swing point to the next in a “stepping” fashion, this is trend development. We want to connect these hook or swing points with horizontal lines in order to highlight the confluent levels in the market.
Pin bar reversals are “hot” signals for price rejection, this chart setup contains 4 in a row which occurred near a strong horizontal level.
Taking all 4 of these pin bars near the key level in the video would have made money on 3 of the 4 setups.
We are trading with the downtrend momentum at the horizontal level discussed in this video, the pin bar signals formed near the confluent area, or the “hot point” as I call it. These “hot points” are typically very high probability setups, entering them with a tight stop loss can lead to substantial risk to rewards, the setup in this video netted traders R:R of 1:3 or 1:4.
You won’t make profits on all trades, you just need to master one setup and be consistent with it and then your winners will pay off and you will make money as your risk to reward pays off.
We are not going to trade EVERY signal, miss some, lose some, win some, the winners should offset the losers with price action trading – master one , its achievable to make profits with price action trading.
New or struggling traders should go back to basics, learn and master one setup before moving on. Most traders end up over trading or using messy indicators, this leads to failure.