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Introduction

Price action trading relies on analyzing raw price movements rather than indicators. By studying patterns on charts, traders can anticipate market direction and identify high-probability entry and exit points. Here are five powerful price action patterns that every trader should master.

Pin Bar (Reversal Signal)

1. What it is: A candlestick with a small body and a long wick (tail).
2. Meaning: Shows rejection of price at a level, signaling a potential reversal.
3. Best Use: Near strong support or resistance zones.
4. Example: A long lower wick near support suggests buyers are stepping in.