3 Best Price Action

Today I’m going to share with you the 3 most effective price action patterns IMHO, and how to properly trade them:

  • Pin Bar – PB.
  • Double Bar Low Higher Close – DBLHC… and Double Bar High Lower Close – DBHLC.
  • Bearish Outside Vertical Bar – BEOV… and Bullish Outside Vertical Bar – BUOVB.

Pin Bar Rules

A Pin Bar is a reversal price action pattern that can be found at the end of a trend.

The number one characteristic of a Pin Bar is that it has a small body followed by a large shadow or wick.

In some case, the closing price can be the same as the opening price.

Higher-probability Pin Bars have a shadow of at least 2/3 of the entire bar price range.

A bullish Pin Bar is a bullish reversal pattern that usually occurs at the end of a bearish trend and indicates price exhaustion.

We’re going to look to go long after the bullish Pin Bar has formed and place a limit order above the high of the PB. Usually the stop loss is placed just below the wick.

A bearish Pin Bar is a bearish reversal pattern that usually occurs at the end of a bullish trend and indicates price exhaustion. We look to go short after the bearish Pin Bar has formed and place a limit order below the low of the PB. Usually the stop loss is placed above the wick.

The most important thing to remember is that a Pin Bar is reliable only in the right market context and it must develop at the right location

3 Best Price Action
Bearish Pin Bar

 Double Bar Low Higher Close Pattern Rules

The Double Bar Low Higher Close pattern is a continuation bullish price action pattern or a reversal bullish pattern.

How to identify a DBLHC pattern? The DBLHC pattern is basically a two bar pattern, one bearish candlestick followed by a bullish candlestick.

The DBLHC pattern is comprised of two candlesticks that have identical lows or near the same price level, but the second candlestick has the close higher than the first candlestick closing price.

The wick is usually very small, with a pretty large body

Entery at market price, immediately at the open of the next candle once the DBLHC pattern is established or place a limit order above the high of the second candlestick.

The protective stop loss can be placed below the low of the second candlestick.

3 Best Price Action
DBLHC Bullish Pattern

Double Bar High Lower Close Pattern Rules

The Double Bar High Lower Close pattern or DBHLC is a continuation bearish price action pattern or a reversal bearish pattern.

How to identify a DBHLC pattern? The DBHLC pattern is basically a two bar pattern, one bullish candlestick followed by a bearish candlestick.

The DBHLC pattern is comprised of two candlesticks that have identical highs or near the same price level, but the second candlestick has the close lower than the first candlestick closing price.

Entery at market price, immediately at the open of the next candle once the DBHCC pattern is established or place a limit order below the low of the second candlestick.

The protective stop loss can be placed above the high of the second candlestick.

3 Best Price Action
DBHLC Bearish Pattern

Bearish Outside Vertical Bar

The Bearish Outside Vertical Bar is a bearish reversal pattern that appears at the end of a bullish trend.

How to identify a BEOVB pattern? The BEOVB pattern is basically a two bar pattern, one small bullish candlestick followed by a large bearish candlestick.

The high of the second candle must be higher than the high of the first candle, and the low of the second candle must be lower than the low of the first candle.

A valid BEOVB pattern has the second candle closing price lower than the low of the first candle low.

The BEOVB pattern is confirmed once the low of the second candle is broken.

Entry at the market price once the second candle low is broken and place your protective stop loss above the BEOVB’s high.

3 Best Price Action
BEOVB Bearish Pattern

 

Bullish Outside Vertical Bar

The Bullish Outside Vertical Bar is a bullish reversal pattern that appears at the end of a bearish trend.

How to identify a BUOVB pattern? The BUOVB pattern is basically a two bar pattern, one small bearish candlestick followed by a large bullish candlestick.

The low of the second candle must be lower than the low of the first candle, and the high of the second candle must be higher than the high of the first candle.

A valid BUOVB pattern has the second candle closing price higher than the high of the first candle high.

The BUOVB pattern is confirmed once the high of the second candle is broken.

Entry at the market price once the second candle high is broken and place your protective stop loss below the BUOVB’s low.

3 Best Price Action
BUOVB Bullish Pattern

 

So everyone knows these price action patterns work. No doubt about it.

But like my long-time subscriber Tony said:

“I trade 7 currency pairs plus gold and silver.

 

Takes quite some time to go through each pair to see which pattern has formed”

Gave me an idea.

What if we could apply our now-famous “Dashboard” concept and design to Price Action patterns?

What if we could develop some kind of “Price Action Dashboard” indicator that SCANS all the pairs you want to trade on
all time-frames for the highest-probability patterns?

And shows you all the recently formed price action patterns in all markets, on all timeframes on 1 beautiful, easy-to-use dashboard.

I’m happy to say: I’VE DONE IT.

Here’s a teaser: Look at the all-new Price Action Dashboard in action…

3 Best Price Action
Price Action Dashboard Teaser

 

So here’s the scoop:

We’re Going To Release Our “Price Action Dashboard” On August 23 and It’ll Change The Way You Trade Price Action FOREVER…

Big words. But once you see the Price Action Dashboard indicator in action, you’ll understand.

Here’s just a taste of what it’s capable of:

First, it will scan ALL currency pairs and ALL time-frames for the highest-probability Price Action patterns you could ever find. And all these calculations are done so fast – literally within seconds – you won’t even notice the time.

Then, the indicator will display a beautiful dashboard on your chart where you can see exactly what pattern has recently formed on EVERY pair, EVERY time-frame.

3 Best Price Action
Price Action Dashboard

 

With just one look at the dashboard, you’ll instantly know all the information you need to make a good trading decision. You’ll instantly know which pattern appears on every time-frame (from 1-minute to monthly) and on every currency pair.

Not only that, you’ll also know the exact direction of that pattern – whether it’s bullish or bearish. And you’ll know exactly how long ago that particular pattern showed up.

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