top of page
  • Writer's pictureVasily Trader

Top 4 Price Action Signals For Beginners. Best Trading Entries & Confirmations For Trading Forex

Updated: Feb 15

4 best price action signals

I will reveal 4 accurate price action signals that even a newbie trader will manage to easily recognize.

Watch carefully because these signals alone will help you to make a lot of money trading Forex, Gold or any other financial market.

Change of Character

Change of character is a strong signal that indicates a trend violation and a highly probable market reversal.

change of character price action trading

In a bearish trend, the change of character will be a bullish violation of the level of the last lower high.

bullish change of character example

Check how the change of character accurately indicated a bullish reversal on EURJPY pair.

bearish change of character price action

In a bullish trend, a bearish violation of the level of the last higher low will signify a change of character and a highly probable bearish reversal.

bearish change of character example

Bearish violation of the last higher low level and a change of character on USDJPY gave a perfect bearish signal.

Breakout of Consolidation

No matter what time frame you trader, you probably noticed that quite often the markets become weak and start consolidating.

Most of the time, the prices tend to consolidate within horizontal ranges.

forex range trading

Breakout of one of the boundaries of the range can give you a strong trading signal.

range trading examples forex

Check how the price acted on GBPCHF.

The breakout of the support/resistance of the range always gave an accurate signal, no matter what was the preceding direction of the market.

Trend Line Breakout of a Pattern

There are a lot of trend line based bullish and bearish price action patterns: the ranges, the wedges, the triangles, the channels.

What unites these patterns is that the violation of the trend line of the pattern gives a strong trading signal.

bullish price action patterns forex

A bullish breakout of a resistance line of a falling wedge, a bullish flag and a symmetrical triangle will give us a strong bullish signal.

bullish pattern trading forex

Just look how EURUSD bounced after a bullish breakout of a resistance line of a falling wedge pattern.

bearish price action patterns forex

While a bearish breakout of a support line of a rising wedge, a bearish flag or a symmetrical triangle will indicate a highly probable bearish continuation

how to trade patterns gold

Here is how a bearish breakout of the support of a symmetrical triangle formation helped me to predict a bearish movement on Gold.

Neckline breakout of a horizontal pattern

There are a lot of different price action patterns.

One element that unites many of them is the so-called horizontal neckline.

In bearish price action patterns like double top, head and shoulders, descending triangle, triple top, etc. a horizontal neckline represents a support from where buyers are placing their orders.

Bearish violation of such a neckline will be considered to be an important sign of strength of the sellers and a strong bearish signal.

best forex price action patterns

In bullish price action patterns like double bottom, inverted head and shoulders pattern, ascending triangle, cup & handle, etc. a horizontal neckline represents a resistance where sellers a placing their orders.

Its bullish violation will be a strong bullish signal.

best bullish price action patterns forex

Below is a perfect example how a bullish breakout of a neckline of an inverted head and shoulders pattern on Bitcoin triggered a strong bullish rally.

price action trading bitcoin

Here is how a breakout of a neckline of a double top on USDCAD confirmed an initiation of a bearish correctional movement.

how to trade patterns forex

The most important thing about these price action signals is that it is very simple to recognize them.

You should learn the basic price action rules and a couple of classic price action patterns, it will be more than enough for you to identify confirmed bullish and bearish reversals on any time frame and any trading instrument.


bottom of page