Forex market opening price line strategies

Let me show you several strategies that involve the opening price line, the first one is the pin bar rejection strategy, trend trading is the best way to trade in any market and the pin bar entry signal that rejects the opening price line in a trending market can provide high entry probability and risk. Good for a bonus scenario.

Forex market opening price line strategies

In this example, we can see a bullish pin bar forming in the context of a bullish trending market right at the opening price line, this type of PEM bar shows rejection of lower prices with a long lower tail so it is called a bullish pin bar due to the implications of the rejection reflected in the bar. The pin is that the bulls will resume pushing the price higher.

When trading a pin bar counter with or against the prevailing trend you must do so from a key chart level of support or resistance, again this is where the opening price is important. This key level the opening price adds extra weight to the pin bar formation, take a look at this chart, we have a double pin bar setup against the right trend at the opening price line.

It is not uncommon to see consecutive or double pin bar patterns formed at key levels in the market. These patterns are traded just like a regular pin bar except they provide a little more confirmation because they reflect not one but two consecutive level rejections.

Exponential Moving Average in Forex

The second system is the Exponential Moving Average, the high and low channel strategy. The price action naturally fluctuates up and down throughout the day but these fluctuations tend to stay within a certain range and thus create an overall upward or downward trend. The moving average channel allows you to monitor Where the price moves and time trades around the opening price line where they find additional supportive resistance against the channel I talked about the high and low channel of the moving average in this article.

So make sure you watch it after this instead of plotting a single moving average based on the closing price, you started with a moving average channel, you will have two moving averages forming a channel that is applied to the high and low prices of the bar instead of the closing price of the bar Average channel This will filter out a lot of all the signals you know well.

What happens when the price closes above or below the moving average?

When the price closes above or below the moving average, you initiate a trade and then the price closes on the other side of the average with a channel. You will have formed a safety net and reduced some of the market noise using a moving average channel, where you remove short-term fluctuations around the line. At the same time, knowing the general direction and direction of the market, when the price faces a strong movement, the price will move.

It tends to return to the moving average channel but then continues in the original direction it was moving in. When the channel and the opening price line come together around the same price level, you get an area of ​​value from which you can make your trades. The signal can be triggered when the price pulls back into a channel. Moving average.

Forex moving average zone

In this case, the 200 EMA high and low area is around the opening price line and reacts with a bounce. If you watch the price action in real time, you will often see how the price moves slightly touching the moving average channel and in some cases, the touch will also include the opening price line only. To be rejected forcefully again in the opposite direction.

“When the moving average channel is trending upwards, consider buying when the price bounces out of the channel and the opening. Conversely, if the channel is trending downwards, consider selling when the price is rising towards the channel and is rejected there. In this case, if you find a pin bar, it may be a better signal.”

Remember the previous strategy if you have had a previous market swing around the area offering another layer of confluence again better.

Hakanashi Forex Trading Strategy

When you are day trading or ranging candlestick charts may constantly fluctuate from a green bar to a red bar but Ikanashi charts tend to have longer extensions of the bars, providing a clear highlight and confirmation of current trends during a breakout as you will not be showing the exact price all the time.

There are some benefits to using these charts, the main advantage is that they look smoother and help determine the direction of the trend more easily. The charts are also color-coded as long as the price is rising, the bars will appear green as long as the price is falling, then the bars will appear red, and the price is above the opening price line with the Hickness candle turning green from red.

Forex trading high kanashi bars

This indicates that the price is about to turn higher, so you want to trade the green rising Kanashi bars above the opening price line If the price is below the line and the rising Kanashi bars turn red, this indicates that the price is about to fall again Trade the red bars under the line.

Real breakout or failed breakout in Forex

You will find the previous corresponding price action that stopped at this level as well. This means that there is a strong supply/demand zone for this level. So, when you see two or more bars with the same high/low level, mark that level, and watch the reaction when the price returns to that level. Look for reliable settings for a real hack or a failed hack.

Summary

Remember that green candles that have no lower shadow or are weak indicate a strong uptrend so if you enter a buy trade for example you can stay in the trade until the line color appears. The Hakanashi candlestick changes from green to red, allowing your profits to continue while riding the short-term uptrend. By the way, this strategy also acts as a range-finding setup.