How to Trade Forex Price Action: My Reversal Trading Strategy in Three Webinars

Do you want to see how I trade reversals with a 74% win rate?

Last week I held three webinars over the course of three days. In the webinars I showed you how I use my Forex price action strategy to spot and trade trend reversals. Below you will find a recording of these webinars.

Forex Price Action Trading

My Forex price action strategy is split into three parts.

First is the candlestick analysis. Candlestick analysis forms the basis of my strategy. By reading and understanding candles, we can predict with a high degree of accuracy what price will do next.

Second is support and resistance areas. Support and resistance areas help us to determine where price is likely to stall and reverse. Knowing where price will likely stall before it does is invaluable information.

Third is trading reversals. By using candlestick analysis together with support and resistance areas, you can trade reversals with a 70%+ success rate.

Step 1: Learn candlestick analysis

Step 2: Learn to place support and resistance areas

Step 3: Learn how to trade reversals

Questions about price action trading?

If you have any questions at all about price action trading, pleaser ask below and I will answer them.


Related Tags:

43 comments

Bookmarked to watch later mate, thanks. You’re on a roll at the moment!

Hi Nick,
I’m Tong from Thailand.Thanks for yours webinar ,it is very useful for me even though I do not trade Forex before but I interest about the candlestick price action.However I’v heard in your webinar when you answered some one question about “will this strategy work in others market” and you said that for stock market it was a bit different.Can you explain what different it is?Due to I only trade in the STOCK market and it would good for me to know if there are any concerns about this strategy in the stock market.
Thank you very much!

Stock market is a lot more sensitive to news and to manipulation. This means that things can often move counter to price action.

Samir from Algeria (North africa Arab country) Thank you very mush this is the first time i understand the chart and how the price move the best Thing is i practiced what learn it’s amazing like a magic i found an oppertunity on Gpb/ Jpy this weak and i got 300 pip it’s really great job god bless you i hope you understand my english

Great! It is tough trading GBP/JPY these days.

Hi, Nick

Its a great video, but i have a little question.
Sometimes you mention that you set up 1st target at the middle between SR lines, and the 2nd target at S/R Area.

Is it mean, you have 2 open position? Or 1 by 1, like when the 1st target was reach, then you open position again to reach 2nd target?

Regards from Indonesia

I believe he means 2 open positions at once. When the first one hits target, it closes and the 2nd open position’s stop loss would be shifted to break even. Naturally the 2nd opened one would be targeting the 2nd target take profit.

He means 1 open position and when it reach 1st target then close 50% of position, move your stop loss on entry, then if price reach 2nd tagret another 50% of position would close. That is based on traders management with open position and of course on market conditions.

Basically, you open two positions at the entry. You close one position at your first target and the second position at your second target.

In meta trader you would do it like this….

Open 1.0 long, when target one is hit close 0.5 by opening a short, close the other 0.5 at the final target.

Hi Nick,

Thanks for the videos. Can you please send me the download links for the three webinars? I have been trying to watch them since the first day you put them online but found them difficult to watch.
I will so much appreciate it if my request is granted.

Thank you.
Isaiah

Sorry but I do not have download links. Why can’t you watch YouTube videos?

Hey Isaiah, it might be frowned upon, but you could consider using something like keepvid.com to download the videos.

Hi Nick,
Thanks for the webnar’s they are really helpful. I have opened a demo account with gft 360 because I heard you mention them. my question is whats the best forex brokers for anewbie?

I do not really recommend brokers any more. Just find a broker in a well regulated country like UK, US, Australia, New Zealand etc. If the broker is regulated and is in a country with strong regulations it will be fine.

Hi Nick, does the reversal success chance get higher when a nice indecision candle is spotted on more than 1 time frame? eg a nice candle forms on the 6hour chart, and I look at the 4hour chart and also see an indecision candle there. Because I’ve noticed that reversals have a high chance of failing especially on the 4 hour chart if there isn’t an indecision candle on the 6 hour chart too.

Hey Elvin,

I’m not Nick, but i’d suggest this:

When in doubt simplify.

If you’re finding better setups on the 6 hour chart, stick to that. My only warning would be to ensure your findings are based off a nice big sample size of trades to make sure it wasn’t just a temporarily unlucky batch of trades.

I will, thanks :D

I have never really looked into the statistics of that. It is a good question and I will start to monitor it.

Logically I would assume that there is a greater chance of success. However, you cannot trade based off of those kinds of assumptions.

Hi Nick.

What is the name of the MT5 indicator you use to measure pips between two points on the chart?

Hey Houmous,

You could just use the measure tool beside the cursor on the top left hand corner. You just select it, then click and drag across your chart to see pips or time.

Ben

There is no indicator. i simply click the middle mouse button and the when i have the cross-hair I use my left mouse button to click and drag.

Thanks Guys.

Hi Nick,

Does your strategy work with Heikin-ashi candles?

Thank you.

Hey Maria,

It wouldn’t work with heiken-ashi candles as they represent price very differently from regular candles, making regular candle stick analysis impossible.

Perhaps you could try to adjust the rules if you really wanted to use them? It’d take a lot of testing to prove that it would work though.

Cheers,

Ben

I have never tried it but I assume they don’t. Like Ben explained, Heikin-ashi represent price differently.

Hi Nick,

Does your strategy apply to smaller timeframes (1 or 5 minutes charts for example).

Thank you.

No, it does not work on 1-5 minute charts.

Nick, I want to thank you for sharing this wealth of knowledge with us (for free!).

[WARNING: Long ass comment!]

I’ve been following you since you started back in 2007. back then I wasn’t having a lot of luck in Forex trading, but when I downloaded and read that ebook, it turned my world upside down.

The concept of trading without a screen full of rainbow colored indicators really spoke to me and I immediately started implementing.

It took a while, but I started getting profitable taking reversal trades and breakout trades based on price action on GBP/JPY. Aah, the good old days ;)

Like I said, I’ve been following you ever since and always take your advice and changes in strategy to heart.

And that’s the beauty of this strategy. It’s easy to adapt to market conditions, volatility etc. It’s great not to be depended on indicators! Somehow it feels more professional and independent.

Also moving from H4 to H8 and D1 charts has been a great step and has given me more confidence, time to relax and live a more ‘normal’ life ;) instead of being a slave to the screen.

WHAT I DON’T UNDERSTAND:
Now, enough with the infomercial stuff ;) and on with something that completely baffles me. How come these webinars have less than a 2000 views on YouTube? And why are there only 15 comments below this blogpost?

This stuff should be mandatory for all traders!

But I guess most of them are too busy japping away on some fx forum about there losses and chasing after the the next holy grail or shiny new indicator. Sometimes I wonder if these traders actually WANT to be profitable.

Trust me; None of my trader buddies (who are profitable!) spend any time on forums. Except maybe to check the calender ;)

Seriously guys, there’s nothing more to becoming a profitable trader then the three steps Nick has outlined for you in these 3 webinars.

So start implementing, adapt it so it fits your lifestyle, make money (and quit your job!) ;)

Nick, thanks for opening my eyes and providing me with the tools to build a solid and profitable strategy. I owe you a lot. Maybe I’ll join the Advanced Course someday to see if I can contribute tot the forum.

Happy holidays and keep being awesome!

Chris

Wow, 2007, I wad still a kid back then lol. I am all settled down now with a serious girlfriend and looking to buy a house.

Thanks for being a member for so long man!

About the numbers, honestly…

… I think it is just the time of year. A lot of my videos have 20K + views and a lot of my posts have 100+ comments. Things just die down around Christmas time.

Help!!

EUR, GBP, AUD, JPY, CAD are keep fallin’ down against USD, and soon all will reach “no man’s land” in term of Support/Resistance.

I really not comfortable trading reversal on S/R areas that based on data from under the year of 2009!

If this keeps going, soon we will only be able to trade cross pairs.

Sorry for the late reply, I was away over Christmas. Even if price falls into no-mans-land after a week or two in those area support and resistance will be established and we can trade.

hello my question is what is your money management. Also what is you risk:reward? Did you risk same amount of lots every time?

hi nick i just got this email on 10/02/2015 is the support/ resistance areas you listed on the other page valid? ps i like your webinars thanks sincerely roger carey

Hi Roger, they are all valid. I update them ever one to two weeks. They do not need to be updated daily.

Hi Nick
Have just found your site and viewed your videos.
Found them very helpful and wish to thank you for sharing your approach.
Cheers
Alan

No problem, glad you enjoyed it.

Hi, can you make a living trading forex ?

why I can not download the book “how to avoid losing streaks in forex’

Hello Nick.
Congratulations on your site. I have negotiated with the Forex some time but I’m not succeeding. See much talk about trading the stock price, and found your website, which by the way is very valuable and educational, I am here in Brazil and unfortunately my English is virtually nil, I am writing through google translator, I can not interpret his statements ace in the videos, I can only read your pages, through the translator, who are very well explained. I am fascinated by the forex market, I read everything I can find and sometimes get confused, but your site found a direction. I would like, if possible, you could show me a book, and preferably videos, or website that had teachings in my tongue, Portuguese or Spanish, which dealt with the same theme “PRICE ACTION”. Whether you indicate, know that from now on I will be following you daily reaping its guidelines. But once congratulations, there are few who would teach others espontanemente. Here is my thanks and a big hug.

Hi
First of all; thanks for the great webinars. This really opened my eyes in avoiding the losing trades.
I have a silly question but I want to ask anyway.

So if I trade on an eight hour chart; I would not worry about being a slave to the screen. The question I have is that; should I go in a trade when one of the markets open? the reason why I am asking is that most of the time any one or more than one market is open.
So consider I enter a trade using an 8 hourly chart; is it mandatory to look at the market timing or I can enter a trade regardless of which market is open or when it would open.

Thanks again for imparting your knowledge which is extremely valuable and a great learning experience.

Hi Oz, You can trade regardless of market times.

hello i saw watched some of the webminar (candle sticks and support and resistance) but what i do not understand is how to find those important support and resistance levels where most buyers and sellers are sitting . i would really appreciate if you can help me out to become a good trader.please i really need your help. thanks in anticipation!

I like trading one market which is volatility 75 index, from a broker binary.com, it’s a very good index market. I’ve never seen any YouTube videos about it, if you may get the chance, can you please give your 2 cents on it.

Leave a Reply

Your email address will not be published. Required fields are marked *