This forex trading video details the ” fakey setup” on the 4 hour chart. A false break pattern combined with a ‘Pin bar reversal’ trigger yields a solid profit in this forex trade setup.
Video Synopsis – Trading Price Action Forex “fakey forex strategy”
In this video we are looking at the EURUSD on a 4 hour chart, using the FXlite demo charting platform which has the New York close candles. In this video I took a short trade on the EURUSD, I suggest practicing on a demo account until you master a consistent track record. The setup I took was a fakey / pin bar, a combination of two setups; the fakey, which is a false-break of an inside bar pattern, and a pin bar, which is a large-tailed candle, preferably 2/3 tail 1/3 body.
What we are looking at in this video is a break-down of the EURUSD on the 4hr chart, we want to find a way to get in before the break down. The fakey / pin bar setup gave us a signal to get short before the breakdown occurred. The way to trade this setup is to first identify the inside bar in the context of a trending market, then we wait for the fakey / pin bar to form and close back inside the range of the inside bar, indicating a false break of the inside bar. The entry is either on a break below the low, or on a retrace of the pin bar / fakey bar. These bearish price action forex fakey setups work very well when a market is looking to break to new lows in the context of a down trend, because there is a good chance of continuation. We are looking for confluence, trend momentum, and price action.