Simple, Powerful and Effective Price Action Trading Strategies

That's just how Forex is, we're working with probabilities. Counter trend trading is harder to pull off, that's why I try only trade reversals at major levels like this one.

In this case it just broke through the level - something that was out of our control, nothing really to 'filter' without over optimizing and over analyzing.


This trade certainly makes up for it....



Have you ever seen a bearish waterfall?

An amazing result to kick off trading for the year. I hope the rest of 2016 is like this.

A few days ago we discussed a bearish trade opportunity that presented itself off an important weekly structure level. I probably would have missed this trade all together if it wasnt for the Price Action Battle Station plugin.

The location of this trade was the biggest highlight, as it demonstrated rejection of a weekly level while creating a lower high swing point. Swing points are like a direction map to where price is likely to head if you know how to read a price chart from a swing trading perspective.

Bottom line, this one simple trade has returned an incredible amount of reward the results were pretty much instant as well. This is why I love bearish crisis markets plenty of trading opportunities that produce fast profits.

If you would like to learn more about swing trading, or get your hands on the MT4 Battle Station, check out the War Room information page.

Best of luck on the charts for the rest of 2016!

Looking at a large bearish rejection candle that formed on the EURAUD daily chart at the end of the New York business close. A few things really stand out here as a potential bearish trading opportunity.

Firstly we're working with a major weekly level here. These weekly levels are where big reversals kick off from. Secondly, we've got rejection candle with a very strong bearish anatomy, specifically the thick bearish body.

The rejection candle communicates to us that sellers are coming into the market around this important level and taking control. If this setup does sell off, we need to watch the potential swing level below. If that swing level breaks, then this trade will have plenty of room to mature into deeper profits.

- The Forex Guy

What you say about this set up

Not a powerful enough candle for a 4 hour trade in my opinion.

That might work out, there is a Bearish Pin Bar on 4 Hour.

But what is with the weird trend line?

Seems very subjective and no one will repeat it.

Support & Resistance however, is a proved concept, good luck, John

good luck with that one

Please friends, I love what you guys are doing here, it is a great impartation of knowledge to me and others . I praise all of you guys to continue your good works.
Please I am confusing on these charts as they are not on the mean value area for price action signal, they only touch the 10 ema but it was regarded as trade signal.

Please enlighten me why it was taken at the touch of the 10 ema, I will be very grateful for you guys assisting me on the subject matter.

You taken these examples out of context. Some of these examples are from articles where I highlight good and bad signals so you need to read the content and use the pictures as visual aid.

I am not teaching a 100% mechanical system, a good price trader is 50/50 discretionary and mechanical because there are no two moments the same in the market.

The mean value is a reference point on the chart to help you identify over extended situations or if you are trading 'in position'.

Check out this inside day breakout on the NZDUSD



A nice swing trading opportunity has landed on the NZDUSD market via the daily chart. When trading within a trending market, we’re looking to trade ‘in position’, and to do that we use counter trend retracements that allow us to ‘buy low & sell high’.

In the case of the downtrend here, a counter trend retracement has given as a good chance to sell after a new swing high formed.

A bearish body inside candle formed as the market stalled and churned at an important swing level – communicating to us swing traders the counter trend move may terminate, and the dominant downward move may continue.

The trigger for us here is to wait for a break of the inside bar to get in with the bearish momentum.

We can see price is now breaking the low triggering short positions. If the breakout holds, a logical target could be the market structure level marked on the chart.

More price action info at www.theforexguy.com

Eur Cad
What you think about the following price action (2 bar reversal) ?

can we place sell stop ?

Hi Jone

Your trade ideas are good, nice analysis.

Just following up on the USDJPY market as there has been a change in the situation now.



A Battle Station alert just came in on my iPhone letting me know of a bullish reversal signal on the usdjpy 4 hour chart. It does say bullish engulfing but really should say bullish rejection candle (due to the lower tail). I will fix have to fix that, but it still recognized a bullish candlestick reversal pattern.

We can see on the 4 hour chart that the market is starting to 'step up' by creating higher lows.

There is a minor 4 hour swing level that is being used as support here which the rejection candle did form from. It does look like a decent trade opportunity, but we can really highlight the potential of this trade when we check the situation on the weekly chart.



This weekly chart was actually pointed out to be by another war room member: shout out to Alvin.

There is a beast of a signal on the weekly chart. If you’re new to swing trading – then you should get used to checking the weekly chart as it can really help you forecast price movement for the next couple of weeks.

There is a large outside candle sitting on a major weekly structure level that is holding as support. These major levels on the weekly chart are big flashing reversal signals.

Check your weekly chart history and you will see that dominant looking reversal candle patterns on the weekly chart generally have good follow through.

We can use the h4 position a way to structure our trade to align with the weekly signal. If that’s too aggressive, you can wait for a daily signal to form, which is very possible we might get one at the new york close.

Lets see how this one plays out.

More info about the Battle Station here

Also I would like to talk about some price action on the AUDUSD which I am bullish on...



We've been watching the AUDUSD for the last couple of weeks bottom out on a major level which is holding as the market structure support.

As the price action has developed, we started to see a major bottoming pattern form - the inverted head and shoulders pattern.

Typically you can identify these patters around major market levels when you start to see higher lows printed on the chart. We can see today's bullish price action is starting to print a higher low.

This will complete the final shoulder of the pattern and confirm it. Some traders wait for the pattern neckline break, but I like to get in a bit earlier by exploiting any price action signals that develop as the pattern forms.

Today is a good example of that, as a 4 hour bullish reversal signal formed as the market bounced from lower prices.



Above is a snap shot of the 4 hour chart, and we can see a bullish reversal signal formed here at a lower high. The Battle Station alerted me, and other War Room traders about the signal as soon as it formed.

Also see the 4 hour chart looks bullish here too as it is creating higher highs and higher lows – the footprint of a bullish trend.

So this a good example of how a candlestick reversal pattern can be used with a market structure pattern to build up a good trade idea.

There is a lot of upside potential here. Generally structure patterns like the inverted head and shoulders, generally pump out some serious moves!

www.theforexguy.com

nice one forexguy

A Battle Station alert has come through for a bearish reversal candle that was found on the AUDNZD h4 chart. On inspection there indeed was a bearish outside/rejection candle signaling potential lower prices to come.

The setup doesn't really look overly special just by isolating analysis to the 4 hour chart. The anatomy of the rejection candle does looks good, as its body is bearish, and the candle range is large relative to the surrounding candles.

By investigating the daily chart, we can add more value to this trade.



On the daily chart we can see price is bouncing off an important level here. If we look to the left, we can see this was a previous market structure support level which is now holding as support again.

To add even more value to a potential bearish move, we can see that the daily chart price is sitting way off its mean value - leaving a mean/price gap.
These gaps are a very strong catalyst for a mean reversion move.

So with all these points in mind, this chart looks like it is going to move down, and the 4 hour rejection candle is a good 'early bird' opportunity to position into a trade before the move takes off.

If you're interested about my candlestick algorithm (the Price Action Battle Station for MT4) you can find out more about it here.

A little meme I made up I think we can all relate to

Sir What you say about this inside bar?

That candle has not closed, you can't call it an inside candle while it is still in play.

Look at this price squeeze breakout on NZDUSD:



Consolidation can cause traders much pain, and screw up trading performances – but if you take a step back and look at the structure of consolidation, you can work with it.

General rule of thumb is to avoid trading inside consolidation, but rather trade the consolidation structure breakout.

Check out this price squeeze structure – sometimes called a pennant or wedge.

Generally when these bad boys decide to breakout, you can get violent follow through moves. Last session a break above, close above event did occur outside the consolidation containment lines.

Notice I said close above, because these patterns are known to produce many fake outs to trick traders into thinking a genuine consolation breakout is about to occur.
Last session a bullish outside candle formed, and closed out side of the pattern. This is a bullish event and we will most likely see higher prices develop from this price action.

- The Forex Guy

Sir This is Eur/Jpy Chart.
We Found a Inside Bar in Daily Time At Weekly Resistance. Kindly Tell ME can We use Sell-Stop Blow This Inside.
IS this Setup IS Perfect ?