Best Forex Price Action Patterns

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Forex trading for beginners can be overwhelming, and it’s easy to lose your way.

That’s why today, I’m excited to share with you three of my favorite Forex trading strategies that have stood the test of time.

The best part? They’re incredibly easy to learn, even if you have no prior trading experience.

So, if you’re ready to discover some straightforward Forex trading strategies that can boost your profits this year.

1) Pin Bar Trading Strategy (Beginner-Friendly)

When it comes to Forex trading for beginners, the pin bar is king.

It’s one of the most profitable Forex strategies, and it’s also very beginner-friendly because it’s easy to identify and trade.

Notice how the market encounters resistance during a rally but then breaks through it. One of the core principles of technical analysis is that former resistance often becomes new support.

For instance, take a look at the GBPCAD daily chart below. After breaking through resistance, the market found new support and formed two bullish pin bars. Shortly after these pin bars formed, the market rallied for an additional 370 pips.

2) Inside Bar Trading Strategy

Another highly effective Forex trading strategy for beginners is the inside bar strategy.

Unlike the pin bar, the inside bar is best traded as a continuation pattern. This means you’ll want to use a pending order to trade a breakout in the direction of the major trend.

In the illustration below, notice how the “mother bar” completely engulfs the inside bar, representing a consolidation period. The real magic happens after this consolidation, often leading to a continuation of the major trend.

For example, the USDJPY daily chart below shows a strong rally followed by an inside bar. These inside bars are ideal for trading because they indicate a true consolidation period, often leading to a continuation of the upward trend.

3) Forex Breakout Strategy

Forex trading for beginners isn’t easy, but the breakout strategy can help you start profiting quickly.

This strategy is a bit different from conventional breakout strategies. Instead of simply trading the break of a level, we wait for a pullback and retest before entering.

We focus on breakouts that occur from a wedge pattern rather than a horizontal level.

The trading opportunity arises when the market breaks out to either side and then retests the level as new support or resistance.

Concluding Thoughts

So there you have it—three simple Forex trading strategies for beginners.

These strategies are my favorite for a good reason. When used correctly, they can quickly grow your trading account.

The best part? They’re straightforward to understand, making them easy to incorporate into your trading plan.

Here are a few key takeaways from today’s lesson:
– The pin bar trading strategy is best used as a reversal pattern in the direction of the major trend.
– The inside bar trading strategy is ideal as a continuation pattern.
– The Forex breakout strategy should be traded after a break and retest of either support or resistance.

Remember, all you really need to become profitable in Forex trading are two or three great trading strategies.

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