PriceActionTrading
Short

3 BAR FAKEY FORMATION. GD SETUP.

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
325 15 13
PRICE HAS FORMED MY FAVOURITE 3 BAR SETUP. THIS IS A VERY BEARISH SENTIMENT.
THOSE WHO FOLLOWED ME SHOULD ROUGHLY KNOW WHAT THIS SETUP IS LIKE AND HOW RELIABLE IT CAN BE.

A FAKEY OF THE INSIDE BAR W1. THIS IS A VERSION OF BULL TRAP.


SELL AT STRENGTH FOR BETTER RISK REWARD. SEE D1 FOR PRICE ACTION.
TRADE INVALIDATED IF PRICE MANAGES TO GO ABOVE 0.774.
Trade working out. Lookout for 0.7300 heavy support.
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Ok
I follow you
+1 Reply
Thanks mate.
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vaicru PRO PriceActionTrading
Yo Bro !!!
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Hey price action, I am not really familiar with the 3 bar setup. Is it as reliable as pin bars? Is it a good idea to sell at 50% of the fakey inside bar, in order to get better R/R?
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Hi moneymaking, there is no specific sell price for this trade. we have to look at H4 D1 for determination. we take the best possible price. if price manages to reach 0.7700 i will just sell without hesitation risking only 40 pips.
the reason this setup is reliable IMO is because the logic behind it is that people will usually put a buy order above/sell order below the inside bar. last week people's buy orders have been triggered but price took a turn to the downside. these traders will realise their mistake and use this week to close their position/ i.e. they will take on sell position.
so we, being the more cautious trader, will take the sell position with them/riding the wave.
hope this clarifies.
+2 Reply
moneymaking PriceActionTrading
Great, that helps a lot. Will be watching it closely to enter with least amount of risk. Thank you for clarifying and Good Luck :)
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But of course nothing is certain. Do not take too much xxxUSD sell positions. if one goes wrong. the rest will too.
+1 Reply
moneymaking PriceActionTrading
Ya definitely, this profession is all about probabilities. Nothing is fixed. I usually take max of 2 positions. The first position is usually a small one, and if I am able to get even a better price than the first one, then I enter my second position which is only twice the size of the first position. That's my approach to reducing the risk as much as possible and still be able to get good price entry :)
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PriceActionTrading PriceActionTrading
Look at all my related ideas above for more explanation of the 3 bar formation in case i wasnt clear enough.
thanks for commenting.
+1 Reply
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