2 Bar Reversal Price Action Trading Setup on Stock Index


The 2 Bar Reversal is a high probability price action reversal trigger signal that traders can use in all different types of markets as entry signals once they understand where they need to look for them and also how to manage them.

This video goes through a live trade on the US Tech 100 major stock Index. As well as covering why this is a high probability setup and why it has a high probability of working out, this video also goes through other often discussed subjects that traders are wanting to know about such as; what are the best markets to trade? Are stocks suitable to price action trading? Are there other markets that can be added to the watch list to trade other than just Forex and if so what?

I am often asked and emailed by traders asking what is the best broker to trade the different markets including the major stock indices and commodities and you can find the brokers I recommend for traders both inside and outside the US and why these brokers are recommended in this article here;

The Recommended Charts and Brokers For Price Action Traders

The key to the 2 bar reversal and all reversal setups is where they are played from and the “Price Action Story” that accompanies them. As explained in this video; the best reversal signals form at clear value swing points that create space and this space creates a clear path that price can then freely move back into for the trader to make a solid profit. Where traders often get into trouble is playing their reversals from the incorrect swing points or when the reversals such as pin bars or 2 bar reversals are not sticking out and do not have space to move back into. You can read more about space and trading from the correct swing points in this lesson;

Trading Reversal Signals From the Correct Swing Points


2 Bar Reversal Price Action Trading Setup 


To learn more about trading the 2 Bar Reversal, see this trading lesson here; Trading the 2 Bar Reversal Trigger Signal

If you want to learn more about how to manage these reversal trigger signals correctly and more advanced price action trading strategies, then check out the Members Price Action Course.


Please share this video with other traders and leave a comment below.

2 Bar Reversal Price Action Trading Setup on Stock Index was last modified: December 20th, 2014 by Johnathon Fox
About Johnathon Fox

Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around the world. Johnathon specialises in helping traders reach their full trading potential by helping them master the art of price action trading and correct money management techniques. To learn more about how you can become a student of Johnathon’s and learn the strategies he uses, then check out the Forex School Online Lifetime Membership


  1. Marcel van Vliet says:

    Any trader who prefers a Pinbar trade, should slide the two bars over each other to see which signal appears.

  2. This is very useful price action trading system. Thanks a lot.

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