Loss Strategy
Any currency pair and timeframe should work, but longer-term timeframes (such as H4, D1 and W1) should work better. By now you may have noticed that these Forex pin bar formations look like the hammer candlestick pattern and shooting star candlestick pattern. However, whatever you decide on when you build your pin bar strategy, make sure to use the same target approach for every trade - one, two, or three times the size of the pin bar.
I could go on for awhile on what I could do. But I just wanted to give you some ideas on how to test a very simple trading strategy and I hope that you will be inspired to test this method or another system that you have been thinking about. A pin bar is essentially a candlestick that closes with a very small body and a very long wick in 1 direction.
It's not recommended to use this strategy on the real account without testing it on demo first. https://www.youtube.com/watch?v=JIKEsKcjUhg If a bearish pin bar formed at a level of resistance after this lower swing low had been made, you would enter a sell trade because the bearish pin bar would be a signal the market is likely to going to continue moving lower.
Looking at the chart above, notice how after forming the pin bar, price then formed an inside bar right after the pin bar, telling us there was definitely a pause from the pin bar rejection which is interesting since a) price was already struggling around 1.3270/80 and b) the bulls had been in control for so long.
Furthermore, as the 50% strategy utilises a price action level, there is simply a lesser chance that the market will hit your stop-loss. So let me just compare these two pin bars with the last one to drive this point home. Therefore, if price hits the stop-loss there, the pin bar trade setup will turn out to be invalid.
In this case, the pin bar is even more valid as the bullish pin bar also has a bullish close (twice). Trade entry will be sell/buy limit” at 50% Retrace Level of the pin bar for safest stop loss. The chart above shows a pin bar rejection near a previously known support level.
Here's how we're going to use it: if the bullish pinbar we have identified is situated at one of the support levels (S1, S2or S3) drawn up by the automatic pivot point calculator, and the lines of the stochastic oscillator cross at <25 where it is, indicating an oversold situation, we have essentially everything screaming at us to make that trade.
Here is another example for why to avoid trading PIN signal against a trend After a huge sell-off rally, we found a bullish PIN formation which is a BUY the PIN signal's failed due to being formed against the downtrend. This is a mistake that people make typically from not being properly trained on how to trade pin bars or exactly what makes a good pin bar, and it's something that's easy to fix.
I trust from this lesson you've learned about some of the most common mistakes traders make when trading pin bars and some steps to make sure you avoid them. In the example below I'm assuming a strong resistance line above my Bullish Pin Bar. Today we will look at what is PIN BAR - how to trade this bar & how this bar reacts on real time charts.
I could go on for awhile on what I could do. But I just wanted to give you some ideas on how to test a very simple trading strategy and I hope that you will be inspired to test this method or another system that you have been thinking about. A pin bar is essentially a candlestick that closes with a very small body and a very long wick in 1 direction.
It's not recommended to use this strategy on the real account without testing it on demo first. https://www.youtube.com/watch?v=JIKEsKcjUhg If a bearish pin bar formed at a level of resistance after this lower swing low had been made, you would enter a sell trade because the bearish pin bar would be a signal the market is likely to going to continue moving lower.
Looking at the chart above, notice how after forming the pin bar, price then formed an inside bar right after the pin bar, telling us there was definitely a pause from the pin bar rejection which is interesting since a) price was already struggling around 1.3270/80 and b) the bulls had been in control for so long.
Furthermore, as the 50% strategy utilises a price action level, there is simply a lesser chance that the market will hit your stop-loss. So let me just compare these two pin bars with the last one to drive this point home. Therefore, if price hits the stop-loss there, the pin bar trade setup will turn out to be invalid.
In this case, the pin bar is even more valid as the bullish pin bar also has a bullish close (twice). Trade entry will be sell/buy limit” at 50% Retrace Level of the pin bar for safest stop loss. The chart above shows a pin bar rejection near a previously known support level.
Here's how we're going to use it: if the bullish pinbar we have identified is situated at one of the support levels (S1, S2or S3) drawn up by the automatic pivot point calculator, and the lines of the stochastic oscillator cross at <25 where it is, indicating an oversold situation, we have essentially everything screaming at us to make that trade.
Here is another example for why to avoid trading PIN signal against a trend After a huge sell-off rally, we found a bullish PIN formation which is a BUY the PIN signal's failed due to being formed against the downtrend. This is a mistake that people make typically from not being properly trained on how to trade pin bars or exactly what makes a good pin bar, and it's something that's easy to fix.
I trust from this lesson you've learned about some of the most common mistakes traders make when trading pin bars and some steps to make sure you avoid them. In the example below I'm assuming a strong resistance line above my Bullish Pin Bar. Today we will look at what is PIN BAR - how to trade this bar & how this bar reacts on real time charts.
