The price action trading system is one of the easiest ways to filter out the best trades. The pro traders in the United Kingdom always suggest that novice traders learn the price action trading system since it allows them to trade the market with an extreme level of precision. Making consistent profit in the Forex market is a very challenging task. It’s true that once you learn the price action trading strategy, you can easily make a decent profit at any market condition. But learning something new from scratch is a very challenging task. Instead of discussing the details of price action trading strategy, we will highlight the easiest way to trade the bearish pin bar.
What is a bearish pin bar?
A bearish pin bar is a single candlestick pattern which signals the bears are slowly taking control of this market. Such a pattern is usually formed right at the critical resistance level. Those who are completely new to this market might not understand the critical resistance level. Resistance is a zone in the market which drives the price of a certain asset lower. To be precise, resistance is a zone in which sellers take part.
What is a bearish pin bar?
A bearish pin bar is a single candlestick pattern which shows the sellers are slowly gaining control of this market. The candlestick has a long tail and a small body. If you spot such a candle in the chart at the critical resistance level, you can expect to see a significant price drop. But the pro traders in the United Kingdom never rely on the single candlestick patterns. They consider the time frame as a very important catalyst to finding good trades. You need to understand the fact, lower time frame trading is extremely risky. Even after using the bearish pin bar, you can’t make a profit if you trade with high risk. If necessary, use the demo trading account to learn how this pattern works.
Execution of the trade
Finding the best trade in the Forex market is a very challenging task. However, if you analyze the daily time frame, you can easily filter out the best trade setups. Instead of looking for the bearish pin bar at the lower time frame, use the daily or weekly time frame. Never think you can make a consistent profit without doing the proper market analysis. Being a novice trader you need to understand the fact, trading is all about managing your risk exposure. The only way to ensure a quality trade is to use the higher time frame.
Dealing with the high impact news
High impact news is often considered as the most powerful price driving catalyst in the Forex market. Those who are new to this business might execute a trade without considering the high impact news. You need to understand the fact, major news can even change the long term market trend. In fact, it can refuel the bulls and break major resistance level without any hassle. So, being a price action trader, you should never execute a short order prior to high impact news.
Dealing with the challenges
Learning to trade the market like a pro trader is really easy. However, the new traders often find it really complex since they never know the proper way to minimize the risk factors. Though bearish pin bar trading strategy is extremely profitable yet you should never risk more than 2% of your account balance. Learn to trade the market with managed risk so that you can easily cover up the loss. In order to become better at trading learn more about the complex candlestick pattern since it will help you to make the perfect decision at any market condition. You need to keep learning new things about this market or else you will never be able to make profit consistently.
