Top 3 Price Action Trading Patterns That Works on TradingView
Top 3 Price Action Trading Patterns That Works on TradingView

Top 3 Price Action Trading Patterns That Works on TradingView

Top 3 Price Action Trading Patterns That Works on TradingView

Price action trading patterns – In the world of tech analysis, price action trading is extremely effective and highly versatile. It’s all about entering based on how the price is moving, and to be honest, you never even need all these advanced indicators to get it done. Price action trading is fully applicable for traders even in the year 2025, thanks to great resources like TradingView, which provide you with great-looking charts and real-time data. If you want to upgrade your trading skills and earn some side money, here are the top 3 price action trading setups that are currently owning it on TradingView this year.

Why Price Action Trading Still Works in 2025

Price action trading is evergreen. Regardless of the hype about indicators and algorithms, there are plenty of traders who prefer how simple yet powerful price action is. Traders can see high-probability set-ups by monitoring the way the market interacts naturally without relying on these lagging indicators.

TradingView has some great charting capabilities with custom indicators that allow traders to identify trends in price action like a pro. You can view all different kinds of timeframes, from minutes to daily frames, and it’s well-organized, so it’s not a hassle to keep a tab on price movement. So yeah, it’s a good platform to use price action trading approaches on.

1. The Pin Bar Pattern

The Pin Bar is extremely consistent at recognizing trend price action and is great at indicating to us when the market is about to reverse. Essentially, it is simply one bar with a large wick, a small body, and it closes virtually at the point where it began. That large wick is a testament to the fact that the price was rejected at some point, so we assume that the market is most likely on the verge of a changing trend.

Key Features of a Pin Bar:

  • Long Wick: Indicates that the price was rejected at a certain point.
  • Small Body: It sways slightly as the bar is being shaped.
  • Close Near Open: It indicates there is a solid move following the rejection.

You can clearly see a Pin Bar by zooming in on the candlestick charts on TradingView. The pattern is great to apply in trend markets as it identifies a reversal at significant support or resistance areas.

How to Trade the Pin Bar:

  • Reversal Signal: Therefore, if you notice a Pin Bar at the peak of an uptrend, it may indicate a downward reversal. Conversely, a Pin Bar at the trough of a downtrend may indicate an upward reversal.
  • Entry Point: So, if you see that the Pin Bar appears, then simply relax and wait for the next bar to confirm before entering.
  • Stop-Loss: Place your stop-loss beyond the wick of the Pin Bar in order to maintain your risk level.

Hey, quick tip: If you want to be even more certain, look for a Pin Bar near significant support or resistance areas, trendlines, or Fibonacci retracement zones on TradingView

2. The Inside Bar Pattern

The Inside Bar is a nice pattern that is fairly simple to detect and fairly reliable when the market is moving. It consists of a short bar (the “Inside Bar”) that is entirely within the range of the previous bar (the “mother bar”). Essentially, the Inside Bar is indicating that the market is sort of stumped or stuck, which typically will cause the price to break out in the trend’s direction.

Key Features of an Inside Bar:

  • Mother Bar: It’s the larger bar that indicates the range of the inside bar’s price.
  • Inner bar: It is essentially a smaller bar placed directly within the range of the larger bar.

The Inside Bar is a great pattern to look for for potential breakouts, and with all the things on TradingView, you can simply zoom in on these setups really effortlessly. Most often, the market will construct a small range after it cools down within the mother bar before blasting off in trend direction.

How to Trade the Inside Bar:

  • Breakout Direction: Sell short when the price moves above or below the mother bar’s range.
  • Confirmation: Just wait until that confirmation of the breakout with a solid move in the same direction
  • Stop-Loss: Have your stop-loss on the inside bar range to protect yourself from these infuriating false breakouts.

Here’s some quick advice: The Inside Bar pattern comes alive in trend markets. Watch for it after a large move, when a trend is underway, to catch that potential continuation.

3. The Engulfing Candle Pattern

The Engulfing pattern is pretty much this two-candle reversal thingy. The second candle completely “engulfs” the first one, indicating that the momentum is reversing upward. It’s a good reversal signal for price action trading, especially if it appears at significant support or resistance areas.

Some important facts regarding an Engulfing Candle:

  • Bullish Engulfing: So, it’s when a large green candle completely engulfs the smaller preceding red candle.
  • Bearish Engulfing: A large red (bearish) candle completely engulfs the previous smaller green (bullish) candle.

Engulfing pattern is a favorite among TradingView traders because it most often appears at significant places such as trendlines, moving averages, or Fibonacci retracement zones. It is essentially a notification that the market is changing course, and you can use it to enter a reversal following a robust trend or pullback.

Strategy for trading the Engulfing Candle:

  • Bullish Reversal: After things have been trending down, watch for a bullish engulfing candle to signal that an uptrend is starting.
  • When the market’s been trending up, watch for a bearish engulfing candle to signal that a downtrend’s ready to begin.
  • Entry Point: Jump on immediately after that large candle ends for a good reversal setup.

You can place your stop-loss at the low of that bullish engulfing candle or a bit above the high of the bearish engulfing candle.

I’ve got a quick tip for you: an engulfing pattern is much stronger if it appears at significant support or resistance levels. And watch for volume spikes to make the setup far more reliable.

Blending Price Action Patterns to Increase Accuracy

These individual price action patterns can work on their own, but combined together, they can send you some pretty powerful trading signals. For example, if you notice a Pin Bar pattern at a support area, then there is the appearance of an Inside Bar pattern, followed by an Engulfing Candle pattern, confirmation of the reversal.

Using TradingView’s charting tools, you can combine these patterns seamlessly with other technical indicators, such as the RSI or MACD, for confirmation. Additionally, utilizing multi-timeframe analysis can help you identify higher-probability setups.

Benefits of Price Action Trading Patterns on TradingView

Simplicity: No need for complex indicators—price action relies solely on the market’s movement.

  • You can apply these patterns to any type of asset, such as forex, futures, or stocks.
  • Easy Entries and Exits: Price action provides a direct set of rules for entering and exiting trades.
  • Adaptability: The patterns are easy to spot on different timeframes, from 1-minute charts to daily charts.

Conclusion:

Hello! So, through to 2025, price action trading remains one of the most optimal means of trading the markets. With great charting software and real-time data on TradingView, you can easily identify one of these high-probability price action signals, such as the Pin Bar, Inside Bar, and Engulfing Candle. Add these setups to your strategy, and you will make better decisions, improve your accuracy, and ultimately bag more profits!

Hi, just a reminder that although these patterns will be extremely helpful, double verify them using other resources and always play safe with your risk management. Just keep practicing, remain relaxed, and you will definitely catch the hang of price action trading by 2025.

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2 Comments

  1. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.

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