An inside candlestick is a good indicator that a bullish or a bearish price trend daily price action forex strategy keep on going in the same direction. An inside candlestick has a lower high than the previous candlestick and a higher low than the previous one. Pin bars typically have a very high accuracy rate in trending markets, especially when they occur at significant confluence levels such as support and resistance levels.
Pins may be taken against the trend if they are well defined and if they significantly exceed surrounding price bars. In the below example, you can see some pins appearing within a rising market. Every time price bounces off the bullish trendline, prices go beyond the previous resistance level. This configuration features a false break of an inside candlestick pattern or a significant price level. Price action for swing traders is the art of looking at individual candles to determine the probable direction of a stock – without using any technical indicators. Ultimately, analyzing price action tells you who is in control of a stock.