Pin Bar Forex Strategy Part 2

pinbar_forex_signalPin Bar is a popular forex strategy which is based on the particular candlestick pattern. You can use this strategy on any major pairs and timeframe. Using longer-term timeframes would be more logical though. I advise H1, 4H or daily charts. The “Pinbar” pattern was first introduced by Martin Pring.
Bearish Pin-Bar Pattern:The pattern consists of three bars: the left eye, the nose and the right eye. The left eye should be a bar up. The nose bar should open and close inside the left eye, but its high should bulge much farther than the left eye’s high. Both the nose bar’s open and close should be located in the bottom. The right eye is where the trading happens. If you see this formation near a strong resistance level, you may think that the chance of being successful would be higher. Please have a look at the charts below:pinbar_strategyBullish Pin-Bar Pattern:
The left eye should be a bar down. The nose bar should open and close inside the left eye, but its low should bulge much farther than the left eye’s low. Both the nose bar’s open and close should be located in the top 1/4 of the bar. Again, the right eye is where the trading happens. If you see this formation near a strong support level, you may think that the chance of being successful would be higher.
Aggressive Entry and Exit Conditions:
1. Aggressive entry option is to enter a position when in the right eye price retreats behind the left eye’s close level.
2. Aggressive take-profit level may be placed farther (to the next strong support level, resistance for bullish positions)
3. Set stop-loss to behind the nose bar point (in this case, your reward/risk ratio may suffer).
Conservative Entry and Exit Conditions:
1. Conservative entry point is below (above for bullish set-up) the nose bar.
2. Conservative stop-loss can be set behind the nearest support/resistance level behind the eyes.
3. Conservative take-profit can be set immediately after the left eye low (high for the bullish set-up).

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Please check the charts below to see real examples on GBP/USD:

pinbar_entry_signal

How_to_Trade_Fake_Pin_Bars_body_Picture_2

pinbar-reversal-strategy

pin-bar-setup

This pinbar still have to filtered with position pinbar it self. The pinbar forex must have posisiton on key support/resistance level from daily or at least on four hour time frame. Learn more about how trade with pinbar combined on strong support resistance levels too.

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