3 Price Action Patterns That Changed My Trading (Free Breakdown)
I've been swing trading forex for years ā primarily USDJPY, GBPUSD, and EURUSD ā and these three setups are responsible for the majority of my winners. No indicators needed. Just price.
1. The Rejection Candle at Key Levels
When price taps a strong support or resistance zone and prints a long-wick candle (pin bar) in the opposite direction ā that's the market telling you "not today."
How I trade it:
Identify the level on the daily or 4H chart first
Wait for the rejection candle to close (don't jump in on the wick)
Enter on the next candle's open, stop loss below/above the wick
Target the next structure level (usually 2:1 minimum)
Most traders get faked out because they enter during the wick. Patience is the edge.
2. The Break-and-Retest
This is bread and butter. When price breaks through a key level, then pulls back to test it from the other side ā that's your high-probability entry.
The key detail most people miss: The retest candle needs to show rejection, not just touch the level. A retest without a reaction isn't a signal ā it's just price passing through.
My checklist:
Clean break with momentum (strong candle body, not a wick-through)
Pullback to the broken level within 3-5 candles
Rejection candle on the retest (pin bar, engulfing, or inside bar break)
Risk:reward of at least 1:2
3. The Consolidation Breakout (Box Pattern)
When price ranges tight between two levels for 5+ candles on the 4H chart, energy is building. The breakout move is often explosive.
How I filter false breakouts:
I only trade breakouts that happen during London or NY session overlap
The breakout candle must close outside the range (not just wick out)
Volume/momentum should increase on the break
I set my stop inside the range, target 1.5x the range height
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The common thread?
Patience and confirmation. Every losing trader I've ever coached had the same problem ā they entered too early. Wait for the candle to close. Wait for the confirmation. The market will always give you another setup.
These three patterns alone can build a consistently profitable strategy if you combine them with proper risk management (1-2% per trade, always).
I break down my full system ā including my exact 5-step entry checklist and risk framework ā inside Lyrical Trade Academy. But this post should give you something to work with right now.
Drop a comment if you want me to break down any of these in more detail. š
