Id like to introduce you to another 2 of my successful trading strategies that I have using to profit from financial markets for almost a decade!
Here are 2 extremely simple, yet extremely effective price action signals which can be used to trade any financial instrument, with precise entry and exit levels for day trades or longer term swing trades.
The first is known as an inside bar formation which consists of a large ''mother'' candle, and a proceeding 2-5 price candles that all sit inside the range of this mother candle, showing us a sign of consolidation and indecision in the prices next move. When we see an inside bar form at a level of support or resistance, it can often be used as a reversal signal. When seen on a pull back to a Fibonacci level it can be an extremely effective signal that price is willing to reverse.
When we see an inside bar in a trending market, we can use it as an entry into the current trend, or a place to ADD to an already current trading position. Once the pattern has broken we can use that inside bar formation as our new stop loss by placing our stop loss UNDER the bottom of the mother candle (in an up-trending market)
The second is known as an engulfing candle, which is used as a reversal signal. An engulfing candle is a large buy/upwards candle (in a down-trending market) that bounces off of a level of strong support, and this large buy bar must completely engulf the range of the previous bar. This shows us extreme buyer incentive coming in at a level of support and can be used as an entry into a reversal, or after a retrace into the Fibonacci retrace levels at 50% or 61.8%
In the video below we can see the inside bar formation in action, how to spot the signal, how to enter the trade based on the signal, and how to manage the trade once we have entered.
You will also learn how to spot an engulfing candle set up and how to trade the set up precisely, and profitably.