Pin Bar is equal to the Shooting Star candlestick pattern signaling a change of bullish trend to bearish trend and the Hammer candlestick pattern signaling a change of bearish trend to bullish market trend. In the picture above - you can see a valid bullish Pin Bar pattern.

You can also see that the Pin Bar pattern nicely spotted the reversal of the market. And one more very nice bullish Pin Bar can be seen in the chart below. Bearish Pin Bars look exactly opposite. Note that in the chart below, the bearish Pin Bar has the long upper wick, while there is a very small lower wick.

The candle creates a nice high of the market, and the Pin Bar closes inside of the range of previous candle. Forex traders usually like to use Pin Bars with other tools of technical analysis. The more tools will confirm the pattern, the stronger the Pin Bar is, and the higher probability of success there is. Traders usually use Pin Bars in a conjunction with:. This example of Pin Bar trading system is pretty easy to use and just needs a few minutes per day to scan the charts if you will trade it at a higher time-frames like H4 and above.

But you can use it at any time-frame as well as market, just choose which one suits you the best. Once you identify a Pin Bar, simply analyze current market structure — the latest supports and resistances. Such a situation you can see below. As soon as the valid signal appears, you can enter a trade by placing the stop pending order.

This is when the market has been bullish for a while and it gets to a reversal zone you can find a reversal zone using the Fibonacci tool. On the reversal zone, the market ranges forming resistance, and then a bearish pin bar is formed to indicate market reversal. A pin bar candle means price rejection on that level; when a pin bar is formed in the forex market, it indicates that the market will go in the direction of the pin bar formed provided that it meets all the market requirements that confirm the marker structure.

Having a good knowledge of the market structure will help make good decisions on pin bars and to filter out false pin bars in forex trading. Pin bar trading strategy is a good way to trade the forex market however just like every other forex trading strategy , it is not to be traded in Isolation. When using a pin bar trading strategy, does this mean that anywhere a pin bar appears in the chart, it should be traded, certainly not? Let us look at the best place pin par strategy can be applied.

Bullish pin bar pattern can be on a reversal trend or on a trend continuation, on a reversal trend a pin bar is formed at a major support level indicating that buyers have taken over the market while for bullish pin bar trend continuation.

The market will be on an uptrend on a higher time frame then retraces to create a consolidation zone, support and resistance in lower timeframe the uptrend then continues with a bullish pin bar in a lower timeframe after it fails to break the support.

This is also true for a bearish pin bar pattern. Pin bar is a general modern name used. Note that all hammer or hanging man are pin bars but not all pin bars are hammers. A hammer pin bar is a candlestick bullish pattern that is formed indicating the end of a bearish trend and the beginning of a bullish trend.

A hammer pin bar is one of the easiest candle stick patterns to identify on the chart. When you think of a T, you think hammer pin bar. The best way to tell a fake pin bar is to stay away from pin bars that do not appear in areas of support and resistance, daily high and low. Your pin bar is valid if it appears on consolidation zones, and areas of support and resistance.

Some traders wait for a bullish or bearish candle confirmation after the pin bar is formed. There are different types of Doji, some have longer pin bars than others, the longer the pin bar the more significant the price rejection is.

A dragonfly Doji is a candle stick pattern that is formed when the high, open, and close price is the same, it is a potential reversal in price when all the market conditions are met. A bullish harami consists of a large body bearish candle followed by a small body bullish candle which is enclosed within the body of the previous candle. PIN BAR TRADING STRATEGY.

Pin Bar is one of the most popular candlestick pattern traded successfully by forex traders from around the world. The main advantage of the Pin Bar pattern is its success rate as well as its versatility.

You can spot profitable Pin Bar patterns at the shortest time-frames as well as in the long-term charts. He derived the name from the tale of Pinocchio. You most probably remember that every time Pinocchio lied, his nose extended.

The longer the wick of Pin Bar is, the more market lied about its direction, and the stronger the Pin Bar pattern is. The Pin Bar pattern is always signaling a change in the market direction. Pin Bar is equal to the Shooting Star candlestick pattern signaling a change of bullish trend to bearish trend and the Hammer candlestick pattern signaling a change of bearish trend to bullish market trend.

In the picture above - you can see a valid bullish Pin Bar pattern. You can also see that the Pin Bar pattern nicely spotted the reversal of the market. And one more very nice bullish Pin Bar can be seen in the chart below.

Bearish Pin Bars look exactly opposite. Note that in the chart below, the bearish Pin Bar has the long upper wick, while there is a very small lower wick. The candle creates a nice high of the market, and the Pin Bar closes inside of the range of previous candle. Forex traders usually like to use Pin Bars with other tools of technical analysis. The more tools will confirm the pattern, the stronger the Pin Bar is, and the higher probability of success there is. Traders usually use Pin Bars in a conjunction with:.

This example of Pin Bar trading system is pretty easy to use and just needs a few minutes per day to scan the charts if you will trade it at a higher time-frames like H4 and above. But you can use it at any time-frame as well as market, just choose which one suits you the best.

Once you identify a Pin Bar, simply analyze current market structure — the latest supports and resistances. Such a situation you can see below. As soon as the valid signal appears, you can enter a trade by placing the stop pending order.

In case of the bearish Pin Bar, the sell stop order should be placed below the low of the Pin Bar. In case of bullish Pin Bar, the buy stop order should be placed above the high of the Pin Bar. Stop-Losses should be always placed on the opposite side of your entry point.

So if we have the bullish Pin Bar, our Stop-Loss should be placed below the low of the Pin Bar. And if we are going to trade based on the bearish Pin Bar, then our Stop-Loss should be placed above the high of the Pin Bar.

Note that we nicely adapt to current market volatility by this simple rule. Sponsored by. BACK TO ARTICLES Forex Trading with Pin Bar Pattern. Close X.

The candle creates a nice high of the market, and the Pin Bar closes inside of the range of previous candle. A bullish harami is a candlestick reversal pattern that appears at the bottom of a downtrend. When using a pin bar trading strategy, does this mean that anywhere a pin bar appears in the chart, it should be traded, certainly not? Note that all hammer or hanging man are pin bars but not all pin bars are hammers. A pin bar candle means price rejection on that level; when a pin bar is formed in the forex market, it indicates that the market will go in the direction of the pin bar formed provided that it meets all the market requirements that confirm the marker structure.

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