Simple Pin Bar Reversal Swing Trading Strategy

Lakside February 15, at 4: Guys if you don't believe Nial about high frequenc Leave a Comment Cancel reply Your email address will not be published. They stand out on the chart which makes them obvious and can bring order flow into the market if other traders take a position. Notice how close the open and close are to the nose of the pin bar in the image. Good article — and setting the stop loss as far as is reasonable is very good advice.

Learn to trade pin bar reversals easily and profitably in this trading turorial. The pin bar trading strategy is a firm favourite with us Lazy Traders.

Risk to Reward Ratio

That simply means you enter the trade at the current market price. Trading with the trend is arguably the best way to trade any market. A pin bar entry signal, in a trending market, can offer a very high-probability entry and a good risk to reward scenario. In the example below, we can see a bullish pin bar signal that formed in the context of an up-trending market. Any time you see a point in the market where price initiated a significant move either up or down, that is a key level to watch for pin bar reversals.

Pin bars can also be traded in combination with other price action patterns. In the chart below, we can see an inside pin bar combo pattern. This is a pattern in which the inside bar is also a pin bar pattern. These inside pin bar signals work best in trending markets like we see below…. For more information on trading pin bars and other price action patterns, click here. The Pin Bar Pattern Reversal or Continuation A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price.

How to Trade with Pin Bars When trading pin bars, there are a few different entry options for traders. Pin bar Combo Patterns Pin bars can also be traded in combination with other price action patterns.

Counter-trend pin bars are a bit trickier and take more time and experience to become proficient at. Pin bars basically show a reversal in the market, so they are a very good tool for predicting the near-term, and sometimes long-term, direction of price. By always making sure we have a stop loss order in place. The best place to set your stop loss on a pin bar trade is above or below the pin bar tail.

This is true regardless of the entry strategy you utilize. For a bullish pin bar setup we would place the stop loss just below the pin bar tail. The distance at which you place the stop loss depends on your comfort level as well as the currency pair being traded, but a good rule of thumb is pips from the end of the pin bar tail. Now for the really fun part, setting the take profit order for our pin bar trade.

The first thing you want to do is to identify the support and resistance levels on the chart. In reality this would be the very first step, even before identifying a potential pin bar setup. This is because in order to know if a pin bar setup is valid you would need to know if it has confluence , and would have already drawn your levels on the chart.

Using the same pin bar setup as before, the first level of support looks like it would come in around the. Now that we understand how to enter a pin bar setup and how to exit one, I have a test for you. What if we used the break of pin bar nose entry for the pin bar setup above…anything wrong with that? Because our first level of support profit target is so close to the pin bar setup, an entry on the break of the pin bar nose would violate our 2R minimum we set previously.

But in case it does, let me break it down. Using the break of pin bar nose entry strategy, we get a stop loss of 80 pips and a potential profit of 90 pips. As an R-multiple, the break of pin bar nose entry becomes a 1. So there you have it, our two pin bar entry strategies and our two pin bar exit strategies. Here are some important points to take away from this lesson:. What are your thoughts on the pin bar entry and exit strategies discussed here? Feel free to ask a specific question or just leave a general comment…all are welcome!

I look forward to seeing yours below! There are two pin bars break of the Resistance, the first pin bar break small is the bar before your mentioned pin bar.

I typically only look for the obvious pin bars to trade — where the tail protrudes from previous price action. Actually, they will be much clearer if you can send me a link of youtube in this wonderfall topics my friend. Like I said before , It will be much better to see the examples live of things like pin bars, hanging man, entry point and exit point etc. I must that your materials are clear. They can be much more clearer if I can use them in collaboration with youtube videos where these topics are explained.

Tseliso, have you seen the videos section? Good one except that I prefer to wait for a confirmation candle to close below the nose of the pin bar. My profit objective is the difference between the stop loss and entry price using 1: With the retracement entry, it often happens that price does retrace but never turns around to break the nose. This could have been avoided by waiting for the break of the nose.

There is no single answer to that question. Hey Justin, Great lesson and thanks. I do have one question. It depends on the setup as well as market conditions.

Hi Justin, great site you have here. I have learnt a lot from here on price action concept.

What is a Pin Bar?

Pin Bar Trading Strategy -Here Are The Trading Rules of The Forex Pin Bar Trading Strategy. Its A great forex reversal trading strategy for swing trading. FREE TRADING STRATEGIES BEST LOCATIONS TO TRADE THE PIN BAR. 5 Common Mistakes When Trading The Pin Bar Strategy By Nial Fuller in Forex Trading Strategies By Nial Fuller Last updated on February 12th, October 4th, | 22 Comments The pin bar is perhaps the most powerful price . Trading with the trend is arguably the best way to trade any market. A pin bar entry signal, in a trending market, can offer a very high-probability entry and a good risk to reward scenario. Pin bar and Inside bar Combo Patterns A pin bar is a price action strategy that shows rejection of price and indicates a potential reversal is imminent.