Obchodování Pin Bars - IV
It works great in a trending market. This is very insightful. The first thing I tell my students to do in regards to pin bar trading, is to learn how to trade pin bars in trending markets. Each time I read your articles I learn more and more about you and how great a trader you are. I must admit that you are completely great at what you do.
2. Not learning to trade pin bars on the daily charts first
Having said that, pin bars can have more validity when the body of the candle also corresponds to the over bias of the pin bar. For example, bullish pin bar with a bullish close is more valid and likewise, a bearish pin bar with a bearish candlestick is more valid.
While pin bars can form anywhere on the chart, they are considered a strong pattern when pin bars are formed near support and resistance levels.
Pin bars can also be commonly formed near a moving average as well as trend lines. Pin bars are valid across all time frames, but of course, a pin bar on a weekly or daily charts take more precedence than pin bars formed on lower time frames. The chart above shows a pin bar rejection near a previously known support level.
Notice how price constantly bounces off the support level subsequently. The identification of the pin bar at the support level shows that it is a strong level of buyers reflected by the long wicks. In this case, the pin bar is even more valid as the bullish pin bar also has a bullish close twice.
If you were to trade based off support and resistance, the appearance of the pin bar is reason enough to take long positions when price revisits the previously rejected price near the support zone. In the next chart above, we get to see an example of a bearish pin bar. Again, it is more valid because the body of the pin bar is also in the same bearish bias as well.
A second test of the resistance level after the first pin bar was formed held and a third attempt was made which formed in a weaker form of the pin bar and prices subsequently dropped lower.
In Figure 5, we have an example of trading trend lines with pin bar confirmation. Here, we first plotted a down sloping falling resistance line connecting the first two lows. As price continues to fall further with the trend line acting as resistance, towards the end, we notice a strong bullish pin bar. This tells us that while prices were pushed lower, the buyers out numbered the sellers, leaving a long lower wick.
I trade only pin bars on daily and 4hr and the results is awesome.. Thanks for the head up message. Your previous message on it has improved my performance drastically.
It will be more clearly said when you can combine the lesson wih charts examples. Excellent article Nial — very timely and informative as usual! Your reinforcement of your materials go a very long way for me. It is true what you say. Since I stopped trading charts lower than the daily, I have become profitable consistently.
And it took me so long to ditch those intraday charts. I was so stubborn! I should have done it a year or two ago! Thanks again for the great training. Thank you so much Nial for your quality time to write such precious words for us. Thank Nial, I see that trading with confluence on any given signal would increase the chances of good trade.
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Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Not learning to trade pin bars in trending markets first The first thing I tell my students to do in regards to pin bar trading, is to learn how to trade pin bars in trending markets.
Not trading pin bars with confluence — market context. Putting your stop loss too close to entry Another big mistake I see traders making with the pin bar reversal strategy, is putting their stop losses too close to their entry. Checkout Nial's Professional Trading Course here. David C April 1, at 3: You the Guru Reply. Marisa October 20, at 6: As simple and clear as possible. Well done Nial and thank you Reply. Thank you so much for these treasures from you soul.
Bruno Samuel Chimdi Ilobinso October 20, at 2: Many thanks to Nial!!! Your articles are very useful and carry a lot of sense! PaulG October 20, at 1: Rashid October 20, at Shekhar October 20, at Anil October 20, at Michael October 19, at Nice article, I use pin bars a lot in trading binary options and it works like charm for me.
Hi Nial Thanks for your good blogs. Nial Fuller October 20, at 1: Just excellent,Really you are a good teacher. Thanks a lot sir. Farkhad October 19, at 2: Leave a Comment Cancel reply Your email address will not be published. Recent Popular Comments Nial Fuller. Price Action Trading Patterns: Can Forex Trading Be Taught? God bless you Nail Thanks Nial for providing these charts now I under Dear Nial, I am a novice forex trader from India I will say a big WOW to this.
Thanks so much Nial Im also intrested to You don't need to make 10R in a month. Great read as usual. One big big ques Hi Nial, Thank you for this lesson. Thank Sir for sharing this information. Thank you for the great insight A very great article but all in all lets protect t I am learning this one at a time as a newbie Mukul on Price Action Trading Patterns: It's really nice Sir!!