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Price action

(which translates, trivially, as “price movement”) hides the modern variety of the candlestick and the
reciprocal systems of indicator less trading.

Pricing should consider a modern technical analysis that greatly expands its capabilities. At the same time, the traditional
trader uses indicators of graphic shapes, the fan of price action prefers patterns — like candles, as the basis for bars

Price - these are patterns in all paths. What is this? This is a special candlestick model or combination of them, using
clearly defined market conditions. This can be a separate candle (pin bar), such a combination (bearish absorption,
inner bar).

When we study the candles, the first thing we read is the books of Steve Nison, who introduced the American
traders to Japanese candles in the 1990s. Support and resistance, along with the waves — this is also the
price action. The trend lines and channels are also.

Perhaps the founder of the pricing action of the modern day is Tony Crabbel, who in 1990 wrote the book “Day Trading with
Short Term Price Patterns & Opening Range Breakout.”

With the growth of interest in Forex trading traders, there was an urgent need for a non-indicator analysis for 24 hours a
day the currency market with frantic liquidity, where there are no gaps. Here, the practice of trying to formalize their
work on the forex market began to appear. James16 is considered to be the father of this direction since 2005, leading
a topic dedicated to pricing, at the American Forex Forum.

Using Price Action

Practice pricing uses the Dow theory of the basics of technical analysis by default. Before searching and interpreting the
patterns, they add the schedule: support / resistance; channels.

7 popular patterns

1) pin bar; 2) inner bar; 3) 3-bar spread; 4) false top / bottom; 5) reversal pivot; 6) false trend line break; 7) CPR. If you
see a bar, you can see that the candle is similar, but it doesn’t show much.

1.Pinbar
In its classic use, the pin bar shows a trend reversal. By the way, pin bar takes its origin from the “Pinocchio bar”. As
a rule, it patches three candles, where the middle of the candle has an impressive “nose” of the left and right candles.
The pin bar is used for the signal of the trend reversal.

Sample
 Bear Pinball

Sell lower spark candles. Lower it draws a horizontal line, the entrance to the candle that “breaks” this
line with his body.

Bull Pinbar
 The same rules, but vice versa. Classic
entry is also a basic breakdown.
2.Inner bar.
There are two internal bars — bearish. As a rule, in most systems, the reactionaction is prone to a breakdown of
the candle, inside of which there is another candle, moreover, it is important that the bear’s or the bullion’s.

The second popularity is one-sided in the pattern of reaction after the bar. The inside bar is the composition of two
candles, where the second one is illuminated.
This pattern suggests consolidation or indecisiveness of the market. Buyers lack the strength to push the market up, sellers
down. The internal bars are not often formed at the maximum / minimum levels and are used as a good entry route. This is
a good indication that the trend begins to run out of breath. Let's see an example.

3.3-bar spread

It is understandable that this spread implies three candles. Two candles of the same color, the third candle is turned off
in such a way that it closes below or above the candle light 2. (Candle 2 closed above the candle 1. Candle 3 closed
below the candle 2.)
Auto mirror situation:

The rules for forming the pattern are similar to the previous ones. The traditional method of using this pattern is to enter
after the 3 candles are above / below the maximum / minimum value of the second. Examples of use are shown below
4. False top or
Swings based on price peaks — one of the most popular patterns of action. Thus, there are situations when the price is
not enough to renew the maximum for an uptrend or at least for a downtrend. As a result, you can catch a trend
reversal for many more indications. This model looks like this:

As you can see, the whole model is laid out in a 1-2-3 scheme. One of the popular methods of new use is at the
breakdown level 2. There are other methods
5. Turning head
A wonderful three-candle pattern. The pattern transparently hints at the level of support or resistance found by
the price.
Upper Turn Pivot

The maximum value of the upper candle

more than the candle on the left and the right. Three more candles in the pattern do not indicate a reversal.

Lower pivot
 All-round: The easiest way the use of such patters — from the levels of support and resistance that they form. This is done
by entering a third and even pattern. For example, take a look at the 1-hour EUR / USD chart. Each green line — this is
support or resistance, which forms a pattern, it is shown below as shown in the figure below (see Fig. 12 below).

6.False Break Line Trend

Everything that is necessary here is a trend line and a slight breakdown. Draw a line along the upper borders of a
candle (non-shading). In general, to form a good trend line, it is necessary that it is faded more than 2-3 times.

It remains to wait until the first line crosses the trend line — this is indicated

The end of the trend, and then cross-cut your horizontal line. You can "catch" an excellent input to the trend
reversal. Similar to the trend down.
As we will see for the example above. I have made a complicated breakdown of the trend line from the line. We are not
drawing a horizontal line and are waiting for the continuation. First, the trend line is broken — the trend is completed —
after which we have a horizontal line. Self-Introducing Incorrect Candle (Non-Entering Candle)

7.CPR
CPR stands for “Closing Price Reversal” - turning around closing the prices. These are one of the simplest patterns,
easy to find the graph. This is just a snag, because the price first does one thing, but it does a completely different
one. Two candles, the second updates the maximum / minimum, but closes significantly lower / higher. It will be more
clear in the following examples.

Bearish CPR
 Upward trend - blue eye. Behind
it appears red, which shades away substantially above the blue, but closes much lower. This signal
is at the opening of the 3rd candle.
Bullish CPR

Similarly, trend down,

a bullish candle appears, which goes away less than that, if you don’t want a candle, it’s red, however, there isn’t
enough candle and the candlestick closes significantly higher.