When I first started trading Forex, I thought Price Action was mainly about three classic candlestick patterns: Pinbar, Fakey, and Inside Bar. Over time, I realized that Price Action is not just trading these three patterns, nor simply combining them with other parts of a trading system.
From my perspective, Price Action is essentially the manifestation of a basic trading system built around three core elements:
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Trend
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Support / Resistance
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Volume
Why These Three Elements?
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Classic Price Action patterns, as well as general candlestick analysis, cannot be separated from these elements if we want high accuracy.
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Example: a Pinbar outside a support/resistance zone is far less reliable.
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An Inside Bar without volume decrease has a lower probability of trend continuation.
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Observing Price Action on smaller timeframes shows a close link to these elements:
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Entry points often coincide with breakouts of highs/lows in patterns.
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Breakouts confirm trend reversals (e.g., Head & Shoulders, Double Tops/Bottoms) or trend continuation.
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High-volume breakouts indicate strong technical and psychological zones.
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With experience, all Price Action patterns can be explained using just Trend, Support/Resistance, and Volume, even single candlesticks make logical sense.
This realization leads to simplicity and effectiveness: the core is not about complex patterns but understanding these fundamental elements.
Applying Price Action in Forex
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Each candlestick is a market expression: it reflects the decisions of all traders and incorporates technical, psychological, and informational aspects.
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Candlesticks don’t lie; your role is to read and interpret them correctly.
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Patterns are manifestations of Trend, Support/Resistance, and Volume:
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Whether observing a Pinbar on D1 or a trend on M15/M30, the market information is equally valuable.
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Don’t limit yourself to just the three classic patterns; read and interpret all candlesticks and formations, even those not covered in theory.
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A key tip: combine Trend, Support/Resistance, Volume with two more factors for optimal results:4. Timing – choosing the right moment (aligned with cycles and sessions)5. Multiple Timeframes – for confirmation and context
Together, these form the five-factor Price Action trading system: TREND – SUPPORT/RESISTANCE – VOLUME – TIMING – MULTIPLE TIMEFRAMES.
Timing in Forex
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Timing refers to the optimal moment to trade, similar to the classical phrase: “Right time, right place, right conditions.”
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Example: on M30, the Asian session may often move against the main trend, while the European session tends to follow it. Knowing this increases the probability of winning trades.
A Practical Example
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D1: a black Pinbar signals potential reversal after a prior uptrend.
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Multiple Timeframes:
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W1: Pinbar aligns with strong resistance
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H4: confirms hitting a key resistance
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M30: shows price breaking the old low, indicating trend reversal from up to down
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Timing: trade during the Asian session when the pullback aligns with breakout resistance
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Volume: weak upward movement indicates strong selling pressure
✅ The perfect sell entry is at the breakout point, combining all five factors.
Conclusion
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Price Action is simple yet powerful when understood as a system of Trend – Support/Resistance – Volume – Timing – Multi-Timeframe analysis.
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Reading candlesticks correctly, applying the five factors, and observing different timeframes will help traders increase accuracy and profitability.
Thank you for visiting the blog and reading this article. Apply, experiment, and share your results. I look forward to seeing you in the next post.
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