Introduction to price action setups
Price action setups have to be considered more like the triggers to get us into a trade. The levels at which the price action setups form is the most important aspect for us to focus on.
We do need to take our time to really get to grips with each of these price action setups and become comfortable trading each one. Setting up specific criteria to use, to help us validate each one is very important.
We have to remember that the levels we trade price action setups from is paramount. Always looking to trade away from the key levels and not straight into them.
I prefer to use price action setups as REVERSALS from swing points rather than continuation signals and the 4 main price action setups I focus on are:
1. The pin bar(PB).
2. The engulfing bar(EB).
3. The inside bar(IB).
4. The sandwich combo setup(SCS).
The main thing to point out is that all of these setups will be taken from key levels and each will need to be large in size, apart from the inside bar of course.
Take a look at this video which explains why the size of a price action setup is so important.
Module 1: The Basics
- Unit 1: What is the Forex?
- Unit 2: Forex terminology
- Unit 3: Fundamentals v technical analysis
- Unit 4: What is price action?
Module 2: Market Analysis
- Unit 1: How to analyse the markets
- Unit 2: What types of trades can we use?
- Unit 3: Marking support and resistance levels
- Unit 4: Time frames/best times to trade
Module 3: Price Action Setups
- Unit 1: Price action setups introduction
- Unit 2: Pin bar
- Unit 3: Engulfing bar
- Unit 4: Inside bar
- Unit 5: Sandwich combo setup
Module 4: Chart Setup
Module 5: Trade Management
- Unit 1: Trade plan
Module 6: Trade Psychology
- Unit 1: Psychology introduction
Module 7: Continue your learning
- Unit 1: What next?