Price Acting Trading Strategies

 Pin Bar Setup

• Pin bar: middle of a 3-bar formation

• Open and Close of pin bar is within (or very close)

  price range of bar 1 and 3

 • Shadow of pin bar sticks out

   Longer, more significant

• Pin bars occurring at important support/

  resistance level can be very accurate

• Can be taken as counter trend if well-defined and

  protrude significantly from surrounding price bars

  Indicates strong rejection occurred

  Preferably on daily chart time frame

1-BAR

Fakey Setup

 

• Inside/Harami bar + False break, then closes

  back within range

• Fakey entry: triggered as price moves back up

  past the high of the inside bar (or the low in the

  case of a bearish fakey)

• Amateurs tried to pick market top, pros stepped

  in and flushed out amateurs in a flurry of buying

 

3 Price-Bars Pattern

Morning Star

• Consists of 3 candlesticks

• Bearish Gap: Bears are in control

  during opening

• Day 2: Prices are not pushed much

  lower (small / neutral candlestick)

  Bullish: stronger sign

• Day 3: Bullish gap up

• Prices pushed further upward,

  sometimes eliminating all Day 1 losses

 Evening Star 

• Consists of 3 candlesticks:

   Bullish, Small/ Neutral, Bearish

• Presence of bullish gap, bearish gap

• Day 2: Prices are not pushed much

  higher

  Bearish: stronger sign

• Day 3: Large bearish candlestick

• Prices pushed further downward,

  sometimes eliminating all of Day 1’s

  gains

Evening Star Pattern

2 Price-Bars Pattern

Bullish Engulfing

 

 
 When found in a downtrend:

• Bullish candle opens lower than

  previous candle’s close, closes

  higher than previous candle’s open

• Potential sign that trend is reversing

• Indicates control has shifted from
  sellers to buyers

Bullish Engulfing

Bearish Engulfing Candle

  
When found in a uptrend:

• Gap up: Bullish sign

• But: Bulls only push prices up

  slightly before bears take over and

  push prices much lower

• Potential sign that trend is reversing

• Indicates control has shifted from

   buyers to sellers

                   Bearish Engulfing

Dark Cloud Cover 

• Bullish candle closes below the

  middle of previous candle

• Rejection of Gap: Bearish sign

• Retracement: Additional significance

                       Piercing Line Pattern

• Bearish candle closes below the

   middle of previous candle

• Rejection of Gap: Bullish Sign

• Retracement: Additional significance

                             Harami

• Bearish Harami

– Large bullish, followed by small bearish

– Gap down, unable to retrace

_Uncertainty entering the market

• Bullish Harami

– Large bearish, followed by small bullish

– Gap up

_Reversal Pattern  

Harami

Tweezer Top & Bottom

• Bearish Tweezer Top

– Day 1 Close about equal to Day 2

   Open

– Occurs during an uptrend (closes

   near the high)

– Sentiments reverses completely the

   next day

• Bullish Tweezer Bottom

– Occurs during downtrend (closing the

  day near the lows)

– Sometimes eliminates entire gains

   from previous day

Tweezer Bottom

BACKGROUND

Tweezer Top 

1 Price-Bar Pattern

1 Price-Bar Pattern

• Long Lower Shadow

- Bullish signal

- Lower shadow must be at least the size of the real body

- Longer lower shadow: more reliable that it is a bullish
   trend

  

• Long Upper Shadow

- Bearish signal

- Upper shadow must be at least the size of the real body

- Longer upper shadow: more reliable that it is a bearish
  tren

Hammer

• Found in downtrend

• Short body at the top of price range

• Little to no upper shadow

• Lower shadow must be at least

twice the length of real-body

• Signals: Reversal pattern when

found in a downtrend

• Short-term outlook indication

• Real body can be black or white

(white: stronger sign

Hammer

• Low reliability, requires confirmation
– Bullish gap for next session
– Subsequent session shows white real body above that of
the hammer’s real body

\

Hanging Man

• Found in uptrend

• Short body at the top of price range

• Little to no upper shadow

• Lower shadow must be at least

twice the length of real-body

• Warning of a potential downward

• Short-term outlook indication

• Also requires confirmation

Hanging Man

 Shooting Star

   • Found in uptrend

   • Short body at the bottom of price

    range

   • Little to no lower shadow

   • Upper shadow must be at least

      twice the length of real-body

   • Signals: Reversal pattern

   • Short-term outlook indication

   • Real body can be black or white

      (black: stronger signal)

Shooting Star

• Low reliability, requires confirmation

– Bearish gap for next session

– Subsequent session shows black real body below that of

the shooting star’s real body

Inverted Hammer

• Found in downtrend

• Short body at the bottom of price

range

• Little to no lower shadow

• Upper shadow must be at least

twice the length of real-body

• Signals: Reversal pattern

• Short-term outlook indication

• Real body can be black or white
 (white: stronger signal)

Inverted Hammer

    Spinning Top & Doji

• Short body in the middle of two long

wicks    

• Market closed relatively unchanged

• Indicates indecision (‘standoff’ after

significant price movement)

• Trend losing momentum; possible

turning point

• Doji/ Long-legged Doji: stronger

signal

• Open and close are the same

• Insignificant in sideway markets

More Doji Patterns

Gold Signal 24-09-2014

Sell Xau/Usd 1220.00 CMP
TAKE Profit 1216.00 1213-00
Slop Loss 1228.00
Result= TP Hit

Top 4 Forex Indicator

01 MOVING AVERAGE

Moving averages are the most basic trending indicator. They show you what direction a currency pair is going and where potential levels of support and resistance may be — moving averages themselves can serve as both support and resistance.As we discuss moving averages, we will look at the following three topics 
How a Moving Average is Constructed 
Moving averages are constructed by finding the average closing price of a currency pair at any given time and then plotting these points on a price chart. The result gives you a smooth line that follows the price movement of the currency pair.You can adjust the volatility of a moving average by adjusting the time frame the indicator looks at to obtain the average price. Moving averages that look at fewer time periods to determine an average are more volatile. Moving averages that look at more time periods to determine an average are less volatile.

MOVING AVERAGE TRADING SIGNAL

Moving averages provide useful trading signals for currency pairs that are trending.
Entry signal—when an up-trending currency pair bounces back up after hitting an up-trending moving average, or when a down-trending currency pair bounces back down after hitting a down-trending moving average.
Exit signal—when you enter a trade on an up-trending currency pair, set a stop loss below the moving average. As the moving average rises, move your stop loss up along with the moving average. If the currency pair ever breaks far enough below the moving average, your stop loss will take you out of your trade.
When you enter a trade on a down-trending currency pair, set a stop loss above the moving average. As the moving average falls, move your stop loss down along with the moving average. If the currency pair ever breaks far enough above the moving average, your stop loss will take you out of your trade.

02 BOLLINGER BANDS
Bollinger bands, created by John Bollinger, are a trending indicator that can show you not only what direction a currency pair is going but also how volatile the price movement of the currency pair is. Bollinger bands consist of two bands—an upper band and a lower band—and a moving average and are generally plotted on top of the price movement of a chart.
As we discuss Bollinger bands, we will look at the following three topics:
How Bollinger Bands are Constructed
Bollinger bands are typically based on a 20-period moving average. This moving average runs through the middle of the two bands. The upper band is plotted two standard deviations above the 20-period moving average. The lower band is plotted two standard deviations below the 20-period moving average.
A standard deviation is a statistical term that measures how far various closing prices diverge from the average closing price. Therefore 20-period Bollinger bands tell you how wide, or volatile, the range of closing prices has been during the past 20 periods. The more volatile the currency pair, the wider the bands will be. The less volatile the currency pair, the narrower the bands will be. - How Bollinger bands are constructed - Bollinger band trading signal - Strengths of Bollinger bands - They identify simple trends - They are flexible enough to work in both short-term and long-term time frames

BOLLINGER BAND TRADING SIGNAL
Bollinger bands provide useful breakout signals for currency pairs that have been consolidating.
Entry signal—when the bands widen and begin moving in opposite directions after a period of consolidation, you can enter the trade in the direction the price was moving when the bands began to widen.
Exit signal—when the band narrows the price of the currency pair moved away from the breakout turns and starts moving back toward the current price of the currency pair, set a trailing stop loss to take you out of the trade if the trend reverses.

03 MACD
The moving average convergence divergence (MACD) is an oscillating indicator developed by Gerald Appel that can show you when trading
momentum changes from being bullish to bearish and from being bearish to bullish. The MACD can also show you when traders are becoming over-extended, which usually results in a trend reversal for the currency pair.
The MACD is usually plotted below the price movement on a chart.
As we discuss the MACD, we will look at the following three topics:
How the  (MACD) is Constructed
The moving average convergence divergence is constructed based on a series of moving averages and how they relate to one another. The standard MACD looks at the relationship between a currency pairs 12-period and 26-period exponential moving average. Specifically, the MACD looks at the distance between these two moving averages. If the 12-period moving average is above the 26-period moving average, the MACD line will be positive. If the 12-period moving average is below the 26-period moving average, the MACD line will be negative.
The MACD line is accompanied by a trigger line. This line is a 9-period exponential moving average of the MACD line.

Moving Average Convergence Divergence (MACD) Trading Signal
The moving average convergence divergence (MACD) produces trading signals as it crosses back and forth above and below the trigger line.
Entry signal—when the MACD crosses above the trigger line, you can buy the currency pair knowing that momentum has shifted from being bearish to being bullish.
When the MACD crosses below the trigger line, you can sell the currency pair knowing that momentum has shifted from being bullish to being bearish.
Exit signal—when the MACD crosses back below the trigger line when you have bought the currency pair, you can sell the currency pair back knowing that momentum has shifted back from being bullish to being bearish.
When the MACD crosses back above the trigger line when you have sold the currency pair, you can buy the currency pair back knowing that momentum has shifted back from being bearish to being bullish.

04 SLOW STOCHASTIC
The slow stochastic is an oscillating indicator developed by George Lane that can show you when investor sentiment changes from being bullish to bearish and from being bearish to bullish. The slow stochastic can also show you when traders are becoming over-extended, which usually results in a trend reversal for the currency pair.
The slow stochastic is usually plotted below the price movement on a chart.
As we discuss the slow stochastic, we will look at the following three topics:
How the Slow Stochastic is Constructed
The slow stochastic consists of two lines—%K and %D—that oscillate in a range between 0 and 100. %K is constructed based on where the current closing price of a currency pair is in relation to the range of closing prices for that same currency in the past. %D is a moving average of %K.
If the closing price of the currency pair is near the top of the range of past closing prices, the %K line (followed by the %D line) will move higher.
If the closing price of the currency pair is near the bottom of the range of past closing prices, the %K line (followed by the %D line) will move lower.
For example, if the EUR/USD has closed in between 1.4200 and 1.4300 on each of the past 14 trading periods and it closes at 1.4295 (near the high of the range), %K will move toward the top of the indicator’s range.

Slow Stochastic Trading Signal

The slow stochastic produces trading signals as it crosses in and out of its upper and lower reversal zones. The upper reversal zone is the area of the indicator that is above 80. The lower reversal zone is the area of the indicator that is below 20. When %K is above 80, it shows the currency pair may be overbought and may be reversing trend shortly. When %K is below 20, it shows the currency pair may be oversold and may be reversing trend shortly.

Entry signal—when %K crosses from above 80 to below 80, you can sell the currency pair knowing that investor sentiment toward the currency pair has shifted from being bullish to being bearish.

When %K crosses from below 20 to above 20, you can buy the currency pair knowing that investor sentiment toward the currency pair has shifted from being bearish to being bullish.

Exit signal—when %K reverses direction after having crossed either above 20 or below 80 and crosses over %D, you can exit your trade knowing that investor sentiment is changing direction again.

Eur/Usd More chance to go down till 1.2500

Economic Calendar

Real Time Economic Calendar provided by Investing.com.