Pin Bar Trend Analysis Indicators and Signals

pin bar candle
candlestick patterns

Trade ideas and setups on the daily, 4hr and 1hr chart are highly probable when supported by the weekly HTF bias. A trade can be taken if a pin bar is very obvious, clear and backed by other confluences at the consolidation equilibrium (mid-point) and at the extreme high and low. Pin bar signals at these market extremes are often seen with impulsive price movement towards the equilibrium and the opposite end of the consolidation. The arrow-like structure of the pin bar candlestick conveys the idea that price is expected to expand further in the direction of the nose. Thanks Nial,for going into detail on how the pin bar is to be traded.Now to apply it to my new way of trading for me that is.

Weekly Forex Forecast (March 27-31, 2023) – Daily Price Action

Weekly Forex Forecast (March 27-31, .

Posted: Sat, 25 Mar 2023 07:00:00 GMT [source]

If the market pushed much higher than the Pin Bars, we would need to abandon our method. But in this case, the test was minor and short-lived. This implied that the market was wound up with tension. Hence, it was not surprising that it resolved in violent swings in both directions. Fortunately, the market gave us many more opportunities to accumulate our positions.

How to Use the Pin Bar Trading Strategy to Maximize Profits

We have already mentioned that large volumes on the shadows can carry important information for reading market sentiment and price forecasting. This example will show you how to use the Cluster Search to find large clusters on pin bar shadows. The professional indicators of the ATAS platform, but there is no specific indicator that marks pin bars on the chart . In the picture below you can see a schematic diagram of one of the reasons why simple pin bar trading strategies can cause losses.

This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. DTTW™ is proud to be the lead sponsor of TraderTV.LIVE™, the fastest-growing day trading channel on YouTube. It is worth noting that some candles don’t have an upper and lower shadow . This usually implies that the open price was the highest point while the closing price was the lowest point.

technical analysis

Once familiarized with the pin bar formation, it is apparent from looking at any price chart just how powerful this pattern can be. I think a lot of trader’s learn about pin bars and other candlestick patterns when they’re new to trading and think they’re useless. A pin bar does not always signal a reversal, so you’ll need to know how to tell when a pin bar has failed, and how to react accordingly. Then it will most likely become a continuation pattern or the wick will be tested again for reversal. It can also be said that not all pin bars are created equal.

A pin bar usually sends a message that a reversal may be about to form in the market. It is also worth noting that a situation known as a double pin bar can happen. This is a situation where the initial pin bar pattern is followed by another pin bar. How CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.

Traditional traders and veterans would call them a Hammer candlestick pattern. Likewise, the pin bar is also called the same for a shooting star when they are found at the top of a bullish trend. The Pin bar and Hammer Candlestick Pattern are both exactly the same. However, the Hammer pattern is a bullish candlestick pattern that indicates a reversal in trend. The Pin bar version of this is just called a Bullish Pin Bar. TCS very bullish at CMP 3217, SL 3160, Targets- 3400, 3500, 3700 TCS just broke out of a year long downtrend, and with less than a 3% risk, one can aim for amazing returns.

What is pin bar trading strategy in forex

For example, in the case of the pin bar shown above, you could add a moving average on the chart. In this case, a more bearish chart pattern will be confirmed if the price manages to move below the moving average. In this case, the sell-stop will be triggered if the pin bar pattern is confirmed.

You will often hear me say you need to build context around a pattern/signal to have a real trading strategy. A Shooting Star is bearish reversal pattern that forms at the end of an advance in price . Pin Bars that are in heavy traffic or choppy, range-bound markets should not be traded. The reason for this is that there is no clear trend and there are too many areas of interest for the price to stall at.

So we activate the strategy and take a look at the entries and exits in correspondence with our pattern. We go short if the market is flat, so if the market position is equal to zero, and a Hanging Man or Shooting Star pattern occurs. And, conversely, we go long if our market position is equal to zero and a Hammer or Reverse Hammer pattern occurs.

The first one is from the bitcoin market, hourly time frame. For example, the chart above shows a series of candlesticks with long lower shadows, which suggests there is demand for gold around $1920 an ounce. Experiments with the rules of placing stop-losses and take-profits are unlikely to help. The first two weeks of use of the platform give access to its full functionality with 7-day history limit.

Then there are also the MyHangingMan and MyShootingStar pin bar tradings. And it doesn’t matter if the open and the close of the bar are positioned above or below the high and the low of the bar. We’re going to explore something related to more traditional technical analysis, let’s say, but in a more systematic way. Our aim is to make our content provide you with a positive ROI from the get-go, without handing over any money for another overpriced course ever again. We are sharing premium-grade trading knowledge to help you unlock your trading potential for free.

Simple pin bar trading strategy

Thank you for your selfless giving back to the community. Free and you can continue using the program even after the 14-day trial period. Towards the end of the article we will show a few practical examples. Rare types of charts, such as Renko, various types of Range, Reversal, Delta and others. Having seen these indications of the Big Trades, one could more confidently enter long positions as the price began to rise.

The last few candles have signs of a price reversal and it seems that the second shoulder has formed. Of course, we should wait until the pattern is completed and then make better decisions, although now is not a bad position to sell to the bottom of the pattern. Use a multiple of the size of the pin bar as a target, or apply simple price action rules in order to exit the trade. The Cup and Handle chart pattern helps you quite accurately anticipate pullbacks and trade according to the main rule of technical analysis, “Trend is your friend, trade with the trend”. If you an experienced price action trader, you might be thinking of applying this method with other patterns.

BTC/USD Forex Signal: Consolidating Triangle Chart Pattern –

BTC/USD Forex Signal: Consolidating Triangle Chart Pattern.

Posted: Mon, 27 Mar 2023 07:00:00 GMT [source]

A pin bar is a type of candlestick pattern that suggests strong buying or selling pressure because of the long upper or lower wick, also called a shadow or tail. For Forex traders, confluence means the coming together of, or combination of, two or more price action patterns, levels, or indicators. The best ones occur in strong trends after a retrace to support or resistance within the trend, or from a key chart level of support or resistance. However, we could try and consider these price patterns, these pin bars, not as separate entities but as the construction of two bars. If you think about it, this daily bar is nothing more than the result of a market movement that started in this direction, went down to this point, and then went back up. Now we’re looking at the 1440-minute chart of the Eurodollar future.

Trade Candlestick Patterns with Top Forex Brokers

In the daily chart of USD/CAD below we can see multiple pin bars formed at the top of a range bound market that was most recently in a large down trend. The last pin bar on the right side of the chart set off a very powerful move that resulted in a breakout of the range and subsequent downward trend resumption. The next candle which comes after the pin bar closes above the upper wick of the pattern. This is the right moment to open a long trade based on our pin bar trading plan. Notice that on the way up, the EUR/USD creates a clear support level .

support or resistance

The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Please ensure that you fully understand the risks involved. Trading forex on margin carries a high level of risk and may not be suitable for all investors.

Now, as you know the main element of the strategy, let’s move on to the setups. Instead, look at the structure of the market as a whole, and then spot areas of price rejection. Well, what I would encourage you to do is to trade with the trend on the higher time frame. Be sure to check out the link above to continue your pin bar education.


You have a bearish pin bar, rejection of higher prices. The key to this pattern is that the pin bar must form in the direction of a trending market. 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. A trader can also enter a pin bar signal by using an “on-stop” entry, placed just below the low or above the high of the pin bar. Then, after opening the position, I wrote down some stop-loss and take-profit levels that take into account the size of the range of the bar in which I assume the inversion takes place.

Beginner Forex book

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. To test the strategy first, you can try it out with a Demo account.

  • It is typically colored white or another light color when the close was higher than the open and black or another dark color when the close was lower than the open.
  • These two strategies have a common thread – they are both the byproduct of news.
  • In 2016, Nial won the Million Dollar Trader Competition.
  • Besides providing a reversal signal, this candlestick is widely used in different trading strategies and is combined with indicators and chart patterns.
  • Risk capital is money that can be lost without jeopardizing ones financial security or life style.

In technical analysis, especially in Forex trading, Pin Bars are graphic patterns that indicate price inversions. The most important thing about pin bars is where they form on the chart. If a candle has a long upper shadow in a downtrend or a long lower shadow in an uptrend, it’s not a pin bar.

However, what does « bear trap in » really mean? You will get answers to these and other questions in this article. Learn all about the Bull Flag pattern, its features, how to identify it in the chart and how to use it correctly when trading on Forex. I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe. Finally, despite how the examples above look, this approach does not always work.