In this article, we will discuss what the term confluence means and why traders should care about it.
Bar analysis: two easy entries
A pin bar is a typical hammer candlestick. It has a body (hammer head) and a tail (hammer grip). Its color doesn’t matter – it’s composition does as it defines whether it comes as a bullish or a bearish signal.
If the body is in the upper part of the candlestick – it’s a bullish sign, and a precursor of an upward reversal if there was a downtrend.
If the body is in the lower part of the candlestick – it’s a bearish sign, and it often precedes a downward reversal if there was an uptrend.
There are three easy ways to enter the market with the help of the pin bar/hammer.
Market entry: you just open position at the current price at a level that falls inside of the candle body/hammer head.
Limit entry: you place a limit order at a level that would be approximately 50% of the candle’s tail/hammer grip.
Stop entry: you put a sell/buy stop order just below/above the tip of the candlestick.
The image below shows where the levels of each entry type have to be located.
Important: make sure the pin bar/hammer is completed before you enter the market.
An inside bar refers to a two-candlestick formation when the body and the shadow of one bar are entirely within the limits of another bar. See the image below: the second bar is completely “overshadowed” by the first one.
Ideally, you will find an inside bar either below the tactical support level (bearish case) or above the resistance level (bullish case). Both scenarios indicate that the inside bar formation confirms that the level is broken, so it makes sense to open position.
In an example below, you see that the trend was in a sluggish move slightly aimed downwards. But after the inside bar, it went straight downwards. In this scenario, you would open a sell order after the completion of the inside bar formation at any level within the first bar’s limits.
Jump in to learn the simple and effective trading strategy, which is based on classic forex principles. No indicators will be needed!
What do we do when the price enters uncharted territory with no previous lows or highs to serve as support and resistance levels? Here is your guide into the unknown.
Frequently asked questions
How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to activate Level Up Bonus?
Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.