Lyrical Trade Academy

AI-powered forex trading tutor built by a 6-figure swing trader. Master USDJPY, GBPUSD, EURUSD with personalized AI lessons, real-time marke...
Kingston, JM
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Lyrical birdProfile picture@lyricalbirdĀ·Apr 25

3 Price Action Patterns That Changed My Trading (Free Breakdown)

I've been swing trading forex for years — primarily USDJPY, GBPUSD, and EURUSD — 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 — 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 — 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 — 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 — 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 — including my exact 5-step entry checklist and risk framework — 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. šŸ“ˆ