Price Action Trading Strategies

There are many Price Action signals traders can use to create an edge in their favour over the market. An edge is something that over a large sample size of trades tilt the odds in the traders favour. A trader could flip a coin and have 50% win rate over enough trades (minus the spread), so finding an edge should average a minimum win rate of 51% or better. In this article we are going to concentrate on the Pin Bar Reversal.

The Pin Bar

The Pin bar is a very simple setup and very easy to spot for Price Action traders. A Pin Bar consists of a small body with a large wick or nose. The name Pin Bar is derived from the name Pinocchio Bar which means a candle that is telling a lie.

The nose on the Pin Bar is the large wick. It is telling a lie to the market. It is telling traders it is looking to break out one way when we know in fact the reverse is true as the Pin Bar is telling a lie and looking to go back the opposite way.

Below I have attached some examples of the Pin Bar. Take note of the long wicks and small body.

An example of a Bearish Pin Bar in a chart is below. Notice the Long wick and then the explosions of price going back the other way (lower).

The Pin Bar can be a very powerful and reliable setup when traders enter them from the correct areas. Traders will normally get caught out with the Pin Bar when entering from the incorrect positions.

The best places to enter trades on the Pin bar are from areas we would expect other traders to enter from. These are areas such as support or resistance, pull-backs within the trend or making a false break of a supply and demand zone.

An example of two Pin Bar’s with the trend is below. Trading with the trend improves a traders overall edge as they are taking a position with the same market bias as the big players.

 The following example is of a Pin Bar that has formed from resistance. This is an example of what we call an A+ trade. The recent momentum was down and price pulled back to a solid resistance zone. This was a very solid trade.

 Recap

The Pin Bar can be a very reliable and powerful setup when the Price Action trader has acquired the correct knowledge. The trader needs to know much more than just what a Pin Bar is. They also must learn:

• How to enter Pin Bar
• How to manage the Pin Bar i,e: take profit and place stops etc
• The Best places to take profit or move to break even
• When not to enter the Pin Bar
• The Pin Bar’s to not get sucked into trading
• The best markets traders can trade Pin Bar’s in

Forex School Online with head coach Johnathon Fox has a plethora of free Price Action videos and articles that can help traders learn the art of the Pin Bar and Price Action trading. Johnathon also runs a course for serious traders looking to take their trading to the next level. To watch or read any of the Price Action videos or articles please visit here: Forex School Online Free Education

Forex Trading with Price Action

Forex trading with price action is one of the most fundamentally responsible ways to approach the trading world in the Forex market place. Trading with price action is simply a way to address the movement of price on your chart, and responsibilities movement with destinations in terms of price direction and targets.

The beauty of price action trading is that fallibility is built into the program, and failure to respond to the price action method you are reading on the chart will allow you are system to close out the trade for a responsible loss. Many of the most dance price action traders in the Forex market place generally regarded as the most responsible professionals.

Two sources for price action trading online either not helpful or poor Forex. Nial Fuller is a gentleman based in Australia who offers his students a very intense programs that allow students to develop price action reading skills and apply his skills to the Forex market. Niall is one of the more responsible trading coaches online, if you still took quite a reputation over the years for developing such responsible system, and implementing very strong videos.

The first video we are showcasing is the Forex . This is a pretty advanced approach to price action, but gives the trader some sort of idea as to how this all works — how the market lures people into squeeze trade.

Discretionary Price Action Trading

For those of you that dont know what this is, its definately time you learnt, and fast or you will inevitably blow your account chasing the elusive holy grail forex system. Discretionary price action trading is not a technical indicator, its not even a combination of indicators, its reading what the market is telling you about price behaviour and movement in the PRESENT.

It can tell you when the current move is running out of momentum through candlestick patterns! It can tell you when the current move is going to continue at a rapid rate on the break of important support or resistance! It can highlight possible retracement areas with the fibonacci ratios! It can warn you of a major move even before it happens with breakout chart patterns like flags and pennants! So if Discretionary price action trading is so great why isn’t everyone using it and why is it not all over my forex brokers website!?

The simple answer is you cannot buy Discretionary price action trading in a packaged, advertised and marketed commercial trading system. Learning to trade Discretionary price action requires skill, education, patience and time. Discretionary price action takes years to master, and by master i dont just mean understanding and being able to use price action, i mean being able to feel the market, being able to use your own discretion when it comes to judging the strength of support and resistance, whether or not that particular fib level will hold, whether the preceeding trend is strong enough to trade that particular inside or pin bar , whether that potential candle pattern your watching will form or fail.

Discretionary price action trading requires you to constantly think, analyse and adapt along with the market and this is why it is so powerful! So from this day forth throw away your lagging indicators, pull up a naked chart and start looking at what the market is telling you right now, i guarantee you will not regret it! If your not quite sure where to start when it comes to trading price action take a look over at my website, over at the daily technical analysis blog everyday i post my technical analysis and potential set-ups for a range of different currency pairs.

Euro Finds Renewed Bids But Price Action

Euro Finds Renewed Bids But Price Action Still Classified as Corrective. The latest resurgence in risk appetite has helped to prop the Euro, but more needs to be done on the fundamental front if the rally is to gain traction…

• Risk correlated assets finding renewed bids
• German plans to strengthen Spanish banks inspire confidence
• ECB Draghi says the central bank is ready to act if necessary
• EUR/USD next key resistance comes in by 1.2625
• Bank of England rate decision due later today

Risk correlated assets have been very well bid over the past few sessions, with currencies and equities reversing sharply as market participants are able to let go of the worst of their fears for the time being. The doom and gloom sentiment that had taken hold in the previous week has faded and investors are once again warming up to the idea that the Eurozone may be able to escape the current crisis and avoid breakup. News that Germany is drafting plans to strengthen the Spanish banks without expecting further reforms or any formal aid deal has been seen as a huge positive and this has been once of the primary drivers of this latest risk-on trade.

Although the European Central Bank left policy on hold as was expected, comments from ECB President Draghi that the central bank is willing to act if necessary have also been helping to bolster sentiment. The Euro now eyes a retest and break of the previous weekly high by 1.2625, while the Yen has also been very well offered on the liquidation of safe haven plays. Still, at the end of the day, this is a market that had been in desperate need of technical correction following some intense risk-off moves, and at this point, we would attribute the recent price action more to the technicals than fundamentals.

European leadership will really need to dig in and come up with some serious plans to resuscitate the region for there to be any hope of a sustained Euro recovery. Until then, the strategy should be to look to sell these currency rallies into additional strength. Looking ahead, the Bank of England is slated for a rate decision later today. While no policy change is expected, there is a good deal of speculation that the Bank of England will shift to a more dovish stance in light of the ongoing pressures in the global macro economy.

ECONOMIC CALENDAR

TECHNICAL OUTLOOK

EUR/USD:The market is in the process of correcting from some violently oversold levels after breaking to yearly lows just under 1.2300. While our overall outlook remains grossly bearish, from here we still see room for short-term upside before a fresh lower top is sought out. Look for the latest daily close back above 1.2545 to open the door for acceleration into the 1.2800-1.3000 area, where fresh offers are likely to re-emerge.

USD/JPY:The latest setbacks have been rather intense, with the market collapsing through the 200-Day SMA before finally finding support by 77.65. We have since seen attempts at recovery and we contend that the market should continue to break higher, with sights ultimately set on a retest and break of the 2012 highs by 84.20 further up. However, at this point, we will need to see a break and close back above 80.00 to officially alleviate downside pressures and reaffirm bullish outlook.

GBP/USD: Daily studies are now well oversold and from here risks seem tilted to the upside to allow for a necessary short-term corrective bounce after setbacks stalled just shy of the 2012 lows from January. Look for the latest daily close back above 1.5440 to strengthen short-term bullish outlook, with acceleration projected into the 1.5600-1.5800 area where a fresh lower top will be sought out in favor of underlying bear trend resumption.

USD/CHF: While we retain a broader bullish outlook for this pair, with the market seen establishing back above parity over the coming weeks, shorter-term risks are for more of a corrective pullback to allow for the market to establish a fresh higher low. As such, we see risks for weakness over the coming sessions towards the 0.9300-0.9500 area before the market looks to reassert its bullish momentum and broader uptrend.

The Best Currency Trading Tutoria

Currency trading is essentially similar to trading stocks except that you are trading world currencies in what are called currency pairs. This is done on what is called the foreign exchange market and this is the largest market in the world. Currency trading is typically considered as a very high risk investment and while there are some that simply speculate on currency values many become very skilled and over time can turn a serious profit. Currency trading allows you to leverage your money on a incredible scale, and it is not uncommon for a brokerage to permit between a 100:1 and 200:1 leverage ratio.

There are different levels of trading when it comes to trading on the foreign exchange markets and many beginning investors will not have the same kind of access as some of the bigger brokerages. Many of the larger world banks and established financial institutions are the only ones that gain knowledge of the tiniest spreads and if you must realize that this is much different from trading stocks in which most investors have access to almost the identical prices as bigger organizations.

If you are looking for a currency trading tutorial then you are probably a novice currency trader who hasn’t had much experience with trading forex. The best currency trading tutorial is one that can point you in the right direction in terms of finding guidance and resources for your currency trading, and it is beyond the scope of this article to go into every single area of currency trading. A forex trading tutorial is essentially about the level of knowledge of the reader and whether that person already has their feet wet, or if that person has never made a currency trade in their entire life.

Currency trading is an extraordinarily deep subject and the only way to learn properly is to put in the time and effort to go over all of the best resources that may be available to you. If you are willing to authentically learn then becoming a profitable forex trader is something that is feasible but is also something that many people have tried to do but in the end have failed. It is important to get all of that nonsense out of your head that many companies and forex gurus might promise you such as how you can make a million in a month with forex, or that you can start with a few hundred dollars open a forex mini account and double or quadruple your money in less than a week.

Forex is similar to more conventional trading in that many attempt to make real money with it, but most fail to make anything significant and the few that really make money are the ones who have done their homework and have gone about doing things the right way. You can do the same with currency trading if you are willing to put in the time but just realize that no one tutorial is going to make you profitable and it is vital that you commit yourself to learning as much as you can as fast as you can.

Johnathon Fox Offering 30-Day Money Back on Price Action Trading Course

Johnathon Fox specializes in helping traders demystify the myths that surround the Forex business and helps traders gain a trading education they will have for life through Price Action Trading. Instead of the many automated and black box systems that many traders fall victims to, Mr. Fox concentrates on teaching his students a method that can help them make their own trading decisions, based on the analysis of Price Action.

“After achieving a high level of success in my own trading I set about spreading the word and helping struggling traders by sharing my trading methods and systems. I have now setup Forex School Online so I can reach more struggling traders, and get them on the right path,” says Mr. Fox. Forex School Online is so confident with their Price Action course they have introduced a 30 day money back guarantee. This is simply unheard of in the Forex Business when most educators are after quick cash at the expense of the student’s education.

The methods and systems of price action trading that Mr. Fox teaches allow traders to navigate the markets and make informed decisions for themselves. As Mr. Fox noted, “the approach we like to take is to give students an education they will have for life, rather than needing to depend on someone else to help them trade.”

The Forex Price Action Trading course offered by Johnathon Fox has garnered much praise from its participants. “I initially followed a path that many new traders take … then I was lucky enough to be introduced to Johnathon’s site,” says Forex School Online trading student Rob. “Twelve weeks. That’s roughly how long it took for me to become consistently profitable once I started to follow Johnathon’s advice.”

The Forex School Online Members area features six sections of targeted content to assist Forex traders with attaining their goals. Section 1 is the Advanced Price Action Trading Course that focuses on providing students with the step-by-step plan that Johnathon uses to continue on a profitable path of action in Forex trading. Members receive the information of what Johnathon uses to trade the markets with. Section 2 helps students get into Forex Trading Psychology. So many traders focus solely on their trading strategy and fall down in the way they approach and think about their trading. Trading psychology can be the difference between success and failure. “Price Action Trading is about helping students change how they think about Forex markets,” observes Mr. Fox. Forex School Online covers this topic with a 6,000 word document that will take you through how you need to approach you trading and how to avoid the psychological pitfalls.

Section 3 is the section that gives members exclusive articles that cover extra topics and teach little extra tips and tricks traders can deploy to increase their success in the markets. Section 4 is made up of videos that include everything covered in the Price Action course created specifically for visual learners. Traders can cement the knowledge of the strategies covered in the course by watching videos where the trading method is put into action by Johnathon himself. Section 5 offers student’s access to the Members “Live” Setups Forum where the senior coaches and other members discuss all things trading from the “live” setups they are entering, to any other help that members may need. Section 6 is where members can gain direct email access to professional trader Johnathon Fox. When you become a member of Forex School Online you are not just left in the dark. Johnathon pride himself on giving traders all the support and help they need to become successful traders. Trading can be daunting and having a mentor to answer any questions you may have will definitely benefit your trading.

If you would like to learn more about Forex Price Action Trading or how you can become one of Johnathon Fox’s members please check out he’s website: http://www.ForexSchoolOnline.com

Johnathon Fox is a professional Price Action trader and is widely known as the master of Price Action trading. Johnathon is the author of an Advanced Price Action Trading Course and has many students from all around the world.