One of the most powerful trading signals that price action traders can trade with is the false break pin bar reversal. When traded correctly and from the correct areas in the market, the false break pin bar can be a very high probability trading setup especially when traded on the higher time frames such as the 4hr, 8hr and daily charts.
This latest video discusses a live false break pin bar trade played on the daily chart of the AUDNZD that Johnathon posted up in the live trading blog as it formed live at the time and you can read that original post here: AUDNZD Fires Off Live Pin Bar. Price on the AUDNZD had been in a clear down-trend before making a retracement higher into a solid swing high. In just under four months, price had collapsed lower over 1,000 pips in the latest move and traders who trend trade were all over this pair looking for short trades on any time frame including the daily chart. It was at this recent swing back high that price fired off a false break pin bar, with price cutting through the resistance and snapping back lower to form the false break.
This video also goes through the more advanced aspects of price action trading and why price action traders are not simply pattern traders looking for just candlesticks or "setups" without the price action story and price action. The second half of this video explains how price winds up in this pair after the false break, what it normally means in the Forex market when this happens and how price action traders need to look out for these types of clues on their charts in future.
Having read this I thought it was extremely informative.
I appreciate you spending some tije and effort to put this
content together. I once again find myself personally spending way
too mmuch time both reading and leaving comments. But so what, it was still worthwhile!
Hello,
I’m wondering how you managed the trade….
I would have been worried about the resistance at 1,075. I would have set fist TP there and and I would have moved to BE when price reached that level, so price would have taken me out with the swing high after the PB. What made you so confident to leave the SL at the PB’s high?
Hope you understand me and thanks for kind answer.
Hello Viktor,
each trade has to be trade differently within the market that it is trading. What this means is; I am not going to manage a trade the same way that I am going to manage a trade that has formed in a ranging market. The other thing that has to be taken into account is not just the first area, but the space after that and potential profit to be made. For example; if I am looking at a high probability trade where I think price is a high chance to get to the first level and after this first level there is then a lot of space if price can break to make a big profit, I am probably going to look to take this trade because I can get into the trade and get to break even and see if price can break into a big winner into the space.
Safe trading,
Johnathon
the video is not opened to me,, whu sir?
Hello Rizwan,
What country are you watching from? And can you watch any of the other videos?
Johnathon
Thanks for the insight 🙂
Great video, thanks Johnathon
cannot enlarge video……:(
Hello Martin,
I have tested this and it is working on the three separate devices. I will email with further advice to get you working.
Johnathon
I’ve played it and got some handsome money. But all credit goes to Johnathon. Thank you Johnathon for helping me to learn Price Action.