Price Action Trading Is the Best Forex Strategy.

Pricing action trading is one of the very popular trading methods in today’s financial market. Analyzing the value of the security may be the most powerful way to gain an edge on the market. All trading indicators in the world are derived from price. It makes sense to study it effectively, understand it, learn from it and use it. The article discusses the fundamentals of price action trading and lays their benefits and disadvantages. It’s worth studying for free. We also share some techniques that suit both beginners and experienced traders. For more information you have to go through the whole article.

The best forex strategy builds on some concrete discipline and technical analysis tools base. Although it also can build on a fundamental analysis base too. A trader has to master upon any forex strategy which can give him maximum time winning results. We now try to share such as the best forex trading strategy which can keep a forex trader in constant profit.

Price Action trading | The Best Forex Strategy.

What is the price action forex strategy? Price action means the action of price. It is a technical analyzing tool. Price Action Trading.

Which builds on the market’s price movement or activities. Market price movements are counted as some categories, like, when it opens, when it closes, how much it has been high, and how much it has been low. This kind of price movement counts as in a certain period of time frame. It could be one minute to one month generally. Under this time frame’s price movements are used as the tool for market prediction. Without this, nothing else is to include this market technical analysis. No, any indicator, no any fundamental. 

Who moves the market? Or, who is the market player in the forex market? Absolutely, it is only the buyer and seller. None is able to move the market except buyer and seller. So predicting the buyer and seller trading activities, their psychological perception in the market, their financial reaction, and action in the market, is the best trading analyzing thing. Yes, price action can do such as this prediction and analysis of the market. In any certain time frame, a piece of price action actually is visualizing the psychological activities of the market’s buyer-seller.

Every price action bar is a psychological pattern of market buyer-seller. What are buyer-sellers in the market? When buyers rush in the market then we see the bullish price action bar, when sellers rush more than we see the bearish bar. When a buyer-seller gets confused on the market then we see the indecision bar, when the buyer-seller rejects any key label then we see the rejection price action bar. Like this, price action shows various buyer-seller’s psychological patterns.

Price action also is the best technical analysis tool. For high accurate supply-demand labels or support –resistance labels are marked by price action. Market trends can identify by price action clearly. Market volatility, liquidity volume, breakout condition, trend change, etc all are analyzed by price action very properly.

See the picture of price action.

So, how to trade the price action forex strategy? We are now describing a very popular, widely used, maximum times winning price action strategy!

Pin Bar The No.1 Price Action Strategy

When it comes to any talk about price action strategy then you must have to talk about pin bars first.

What is a pin bar?

The real name “Pinocchio bar” shortly calls “pin bar”. It is taken from a Japanese candlestick pattern. In price action, Japanese candlesticks mostly use tools. Because Japanese candles can present price action concepts very obviously. It looks like “al-pin” for this it call “pin bar”. Very well-known Japanese candlestick patterns, the Hammer, the shooting star. The dragonfly doji , the gravestone doji , are always used as pin bar price action set-up.

Which signal is given a pin bar as a price action pattern? Pin bars always show the market price reversal, any technical label rejection, and a false break of any technical label. It’s mainly a reversal pattern bar.

How to Make the Struck Char of a Pin Bar? To Build up a Pin Bar It Must Three Conditions or Characters Are Necessary

1. The pin bar must have a longer upper or lower shadow, wick or tail. How much the tail is bigger than it is a perfect pin bar. The tail of the pin bar must have to be two or three times bigger than the real body of a pin bar.

2. A pin bar must have a real body. The area between the close price and the open price of the pin bar is called the “real body” of the bin bar. As much as smaller the body is good for a perfect pin bar. Also, how much the body closes at the last end of the pin bar is good for a perfect pin bar.

3. The end site of the pin bar is called “nose”. The nose exists beyond the body of the pin bar. As so, shorter noses are perfect for pin bars. The nose should not belong for a better pin bar.

How to mark a best and perfect pin bar? To mark a valid and high probabilities pin bar we should maintain some observation, like as-

1.A valid pin bar’s tail must be bigger two or three times than the body of the pin bar. The tail of a pin bar two times bigger than the body is mandatory but three times is best.

2.If the pin bar’s tail sticks out or protrudes from all recent surrounding price bars it is the best pin bar.

3.If the pin bar closes and opens within the previous bar’s range it is the best pin bar.

4.If pins stick out or break any key technical label, like as support resistance, trend line, fib label, major moving average it is a good pin bar. 

See the example of a valid pin bar in below:

There are two types of pin bars – bullish pin bars and bearish pin bars.

Bullish pin bar- 

The pin bar which gives a signal for a buy trade entry is called the “bullish pin bar”. Bullish pin bars occupied any lower price label. It reverses the down price to go up. It shows rejection of the down price label, support label also.

In a bullish pin bar the body of the pin bar points on the upper side and the tail stays on the underside of the pin bar’s body. 

See the picture of bullish pin bar-

Bearish pin bar

The pin bar which gives signals for sell trade entries that are called “bearish pin bars”. Bearish pin bar occupied any higher price label. It reverses the higher price to go down. It rejects the higher price label, resistance label also.

In a bearish pin bar the body of the pin bar pointing in the lower side and the tail stays on the upper side of the pin bar’s body.

See the picture of bearish pin bar-

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How to get trade entry in pin bar-

Generally, there are three types of trade entries with pin bars we can recommend for you to take. Which are?

1. After breaking the nose of the pin bar, getting in buy or sell entry is the most common entry type of pin bar. It also stops the entry of the pin bar, also. It means when the breakthrough the pin bar heist ends then you enter a trade entry.

2. Secondly, you get a trade entry with the pin bar aftermarket price closes. It is called a market entry. We suggest you can get an entry within the body area of the pin bar.

3. Sometimes the next price bar or pin bar retraces toward the pin bar’s tail. It can retrace 50% or more and less of the total pin bar length. So within the fifty percent retracement area, you can get a trade entry. It calls for a limited entry of pin bars.

See the example of pin bar entry by the picture

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How to get best trade set up with pin bar-

To get the best result for trading success with a pin bar fully depends on how you mark or take the pin bar set up properly. We now try to give some idea about some best pin bar trade

Set up-

Pin bar trade within the running trend.

In any forex trading strategy trading with the trend is the no.1 high probabilities and profitable trading strategy. In pin bar trading strategy it is also the same thing. So, trade in a running trend with a pin bar you can take as a first priority trade set up.

In this trade set up you must first need to identify the trend which is going on.

After trend identification, you must also mark a key technical label, like as support-resistance, trend line, vital moving average, etc.

In uptrend, you have to take buy entry when you get the bullish pin bar signal with key technical label, like as support.

In a downtrend, you have to take a sell entry when you get a bearish pin bar signal in resistance. Or key technical labels.

See an example of a best pin bar sell set up-

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What we have seen in that picture? There is a full downtrend. After going to the last lower end, price retrace back, and again retests the recent resistance label. And a bearish

Pin bar has occurred in the resistance label. This pin shows as the rejection of the resistance label. And the price starts to go down again. So, trade with a bearish pin bar like this setup.

See another example of bullish pin bar with trend trading.

In that picture price fully an uptrend, price also breaks the recent resistance. Broken resistance becomes a new support. And a bullish pin bar has been created with a new support label. This bullish pin bar gives signal as just broken resistance breakout confirmation, and rejection of new support labels. So, the price has gone up.

Actually, we have given in those two examples the rejection works of the pin bar strategy.

Pin Bar Reversal Trade 

The pin bar is a fully reversal pattern, indeed. It always makes the price go in the opposite direction. Now we are giving twice reversal pin bar’s trade setup example-

See the bullish pin bar reversal set up-

In that picture the oil price fully in a downtrend, Price has gone as low as it possible! At the end, there is a big and perfect bullish pin bar created, and the market changes it’s downtrend direction. Start to go upward direction. In this setup pin bar shows a vital trend reversal work.

See another picture of a bearish pin bar reversal set up

The Eur Usd pair, in that picture, is fully in an uptrend. In the end of the trend, a nice bearish pin bar has occurred. The bearish pin bar is able to change the trend reversal, and price has gone to down ward.

How to set stop loss and take profit orders with pin bar trade-

Always set the stop-loss order minimum 10 pips below the tail of the bullish pin bar and 10 pips above the bearish pin bar.

In a buy trade with a bullish pin bar you can set your take profit target to the next resistance label, and in a sell trade, you can set your take profit target to the next support label.

Conclusion

No doubt, the pin bar is the best forex strategy in the trading world. If you want to skill full upon this pin bar strategy, do practice again and again. Must do money management for the best result.

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