5 Common Mistakes When Trading The Pin Bar Strategy

Pin Bar, which is short for ‘Pinocchio Bar,' is a single candlestick setup that clues price action traders into potential reversals in the market. The pin bar trading strategy, is a price action reversal trade setup that can be used to make money from the markets when used correctly. You can see the body of this pin bar closes into the wick of the previous candle, not the body like we saw in the previous image.

Sure enough, a bearish pinbar formed at point B, and pulled back from the 21EMA, providing a double confirmation. Forex Pin Bar Strategy An important rule for identifying a pin bar is that the long wick should comprise at least 2/3 the size of the entire candle. There are actually many pin bar entries, and they should depend upon the context of the price action around and leading up to the pin bar itself.

Trading price and price only in the Forex market is the best way to consistently predict movement. Trade with pinbar should adding with this filtering key level from daily timeframe. Trading the Forex markets with price action is a skill that takes continual practise.

On a bullish pin bar formation we will buy on a break of the high of the pin bar and set our stop loss 1 pip below the low of the tail of the pin bar. In this article, I will talk about one of the most effective price action reversal patterns, it is pin bar pattern.

Plus, the higher time frames will allow you the time to completely analyze the pin bar signal without the pressure of getting into the trade before it gets away from you.” When you're comfortable with the steps in analyzing a pin bar signal, you will be able to handle the lower time frames much more easily.

Also, you will notice how there were several with trend pin bar setups along the way, giving you one option for joining the trend. For the Pin Bar to be valid you definitely want to have the right market structure, because it's going to give you the highest chance of success.

Each of these patterns increase the probability of a reversal occurring at these locations - as long as the pin bar has occurred at a significant level. If it does, then you have a strategy with positive expectancy, and this is the first step to becoming a successful trader.