Forex swing trade setups

The Authority’ on Price Action Forex swing trade setups. In 2016, Nial won the Million Dollar Trader Competition.

Key market levels are the core foundation of all technical analysis and price action trading. By focusing on the raw price dynamics and key levels in a market, we can remove the clutter and confusion that so many trading systems and strategies are full of, and instead trade from a clear and objective mindset. Note: All charts in this lesson reflect the daily time frame. Trading with the dominant daily trend is the primary technique I use to trade the markets. Much of my course is dedicated to trend analysis and teaching traders to trade simple price action strategies in the context of a trending market. We can look for price action signals forming near levels of support and resistance that develop as a result of the natural ebb and flow of a trending market.

In the example chart below we have the daily GBPUSD showing about the last 4 months of data. What I have done here is simply drawn in the obvious key support and resistance levels and then highlighted the valid price action trade setups that formed near these levels. Unfortunately, the market is not always trending, in fact it’s often said that markets spend more time consolidating and moving sideways than they do in trending conditions. Fortunately, with knowledge of how to trade simple price action setups from key levels, we can effectively trade range-bound markets as well. In the example chart below we see the daily EURUSD from about the end of May to mid September of this year.

We can see an obvious trading range that developed in this period of time and some price action setups that formed off the support of the range. When we see price approaching a recent swing point we can be on alert for price action setups forming near it. A recent swing high will often act as support in an uptrend, and a recent swing low will often work as resistance in a downtrend. Let’s look at a chart to see this more clearly. In the example chart below we see the daily EURUSD from about mid-August until now.

We can see that price came down and found support near 1. This swing point then became very important for the subsequent price action forming near it, acting both as support and resistance. For today’s lesson I am going to discuss how I use the daily 8 and 21 EMAs to highlight key levels in the market to trade price action from. In the example chart below we have the daily EURUSD showing about the last 4 months of data.

When the EMA’s are crossed lower and diverging, we have downward momentum, and when they are crossed higher and diverging we have positive momentum. These levels are obviously very significant and I discuss different ways to trade them in my price action trading course. But, for today’s lesson I am going to show you how to trade price action setups from event areas. 00 as price rejected this level multiple times forming well-defined pin bar strategies that subsequently set off significant directional moves. When we combine these two components we get a very high-probability and simple trading strategy that is also flexible enough to be applied to the ever-changing conditions we see in the Forex market each week. We cover all the key market levels in the major Forex pairs in our daily members’ commentary each day.

I teach my students in my Forex trading course and members’ materials. I believe price action trade setups have a much higher probability of working out in our favor when we look for them at these confluent key levels in the market. Nial, how do we know all these inside, fakey, pin bars you refer to? I do not know how to identify them.