Force Strike Bar Formation Reversal Trading Strategy

Action ion False Break Break  – Bul Bulll and Bea Bearr Trap Price Act High Probabilit Probability y Force Strike for Reve eversal rsal Tradin Trading g

By: Alson Chew

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FORCE STRIKE STRIKE BA B A R FORMA FORMA TION STRATEGY Force Strike Stri ke (F (FS) S) a as s an extensi extension on to t he 3 main EXE bars FS is a price action fractal demonstrate or bull by itself. Usageand of this price ac tion action structure at key levels (LP)that gives us clues onbear whether SLtrap is being triggered false breaks that results in bear or bull traps created by the MM. Traders can take on standalone price action trades on bullish FS when there is force __________ scenario. Traders can take on standalone price action trades on bearish FS when there is force __________ scenario. Do refer to Entries and Exits chapter for detailed trade execution technique.

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FORCE STRIKE STRIKE BA B A R FORMA FORMA TION STRATEGY Mother Bar  Baby Bar 

Baby bar within Mother bar range

CRITERIA •

•

Baby bar within Mother bar range

Mother bar or baby bar can be bullish or bearish

SIGNIFICANCE •

•

Baby bar outside of Mother bar range

Baby bar must be equal or within Mother bar range

Inside bar shows a period of indecision on the chart Inside bar should not be used as an execution sign but a prelude to Force Strike bar formation (next slide)

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FORCE STRIKE STRIKE BA B A R FORMA FORMA TION STRATEGY

CRITERIA

Moth Mo ther er Bar Bar Baby Baby Bar Bar (Ma (Max x clus ter of 5 Bars) Bars ) • •

Max Ma x clus ter of 3 Bars Bullish PIN

Satisfy Inside bar formation criteria Price movement to break below Mother Bar Low Lo w and returns within Mother Bar range.

SIGNIFICANCE

•

•

•

Price movement breaks down of mother bar range

•

Price movement returns to mother bar range

Bullish Ice Cream Bar  Mark Up Bar 

Period of Inside bar indecision cause a false break below Mother Bar low which trap breakout traders on the downside •

 Accumulation occurs here when  Accumulation when Market Maker collects sell stop orders and market sell orders to turn his net book position long for high probability upside price movement

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FORCE STRIKE STRIKE BA B A R FORMA FORMA TION STRATEGY

CRITERIA

Price movement Price movement returns breaks up of to mother bar range mother bar range

•

•

•

•

Max clus ter of 3 Bars Max Bearish PIN

• •

SIGNIFICANCE •

Bearish Ice Cream Bar  Mark Down Bar 

Period of Inside bar indecision cause a false break up of Mother Bar High which trap breakout traders on the upside •

(Max ax clust er of 5 Bars) Mother Bar Baby Bar Baby Bar (M

Satisfy Inside bar formation criteria Price movement to break up of Mother Bar High and returns within Mother Bar range.

Distribution occurs here when Market Maker collects buy stop orders and market buy orders to turn his net book position short for high probability downside price movement

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