Strategy Trading With Price Action: Pin Bar, Fakey and Inside Bar. This strategy is simple but very powerful, and if applied with patience and discipline can be a strong reference in trading. Price action, there are many versions and variations, but this time we are only going to focus on three core formation, namely the pin bar, fakey (false / fake) and the inside bar.
(Note: the question 'bar' here is a whole unit on a candle stick, so the body plus tail.)
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Pin bar:
In a strong trend of price movements (either an uptrend or downtrend) pin bar formation can be very accurate, especially the pin bar that formed on levels of support or resistance are significant. Characteristics of the pin bar formation is the presence of a bar that 'stand out' out among the other bars that press, which indicates rejection of the trend. The picture below is the form of a bearish candle and bearish pin bar pin bar, and an example of a bullish pin bar that formed in an uptrend price movement, beginning with the formation of two bullish pin bar at the end of a downtrend. To market downtrend same analysis, only the pin bar that formed was bearish pin bar. Highly recommended to use this strategy only on the daily chart time frame.
Fakey (false):
%2B.JPG "Fakey (false) - Strategy Trading With Price Action: Pin Bar, Fakey and Inside Bar")
Formation bar fakey (false) indicates rejection at a level that is considered significant. As if the price moves to follow the trend that is happening, but then reversed course. Often after fakey formations formed, prices rebounded strongly. Formation fakey bar for uptrend as shown in the figure below. Its main characteristic is composed of inside bar, followed by a bar false break formed and closed at the level of the range inside the bar. Entry point is the next bar when moving beyond the highest level inside the bar (or the lowest level for fakey downtrend / bearish). In the picture below looks formation bar fakey uptrend. Before the fakey price is moving up, then down, and after the rejection of the formation fakey, the price back up.
Inside the bar:
Formation inside bar indicates a trend continuation, although sometimes it could also indicate a reversal. But an easy way for application in trading is the trend continuation. In the picture below looks formations inside the bar, where a small candlestick as a whole are in a large range of candle beside him. Inside the bar shows the consolidation of the market brief, before finally breakout in the direction of the trend is dominant. As in the picture it appears that prior to the breakout of the support level (red line) has been penetrated, and then going on a brief consolidation before sliding down firmly.
This strategy is very nice applied on the daily and weekly chart, the setup: a small risk and big rewards.
As shown in the third example above, the analysis in forex trading should not be complex and complicated to use various indicators on the trading chart that seem confusing. If the price action setup has been studied as a whole, we will be more confident in trading, however, takes patience, dedication and discipline to really understand it.
This is good for all traders and reliable for new investors. In time gold market has very fluctuated compare to silver. It fully depends on the economic condition of the market and its movements.
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