How to trade pin bars from key chart levels.
The Pin Bar Pattern (Reversal or Continuation) A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. Introduction: The underlying concept of Inside Bar Breakout Trading Strategy is based on the process of accumulation and distribution which is also known as consolidation at key support and resistance areas respectively by big players and then the breakout thereof. This article comprehensively deals with the various aspects of trading breakouts of .
The tail of the pin bar shows the area of price that was rejected, and the implication is that price will continue to move opposite to the direction the tail points. Thus, a bearish pin bar signal is one that has a long upper tail, showing rejection of higher prices with the implication that price will fall in the near-term.
A bullish pin bar signal has a long lower tail, showing rejection of lower prices with the implication that price will rise in the near-term. When trading pin bars, there are a few different entry options for traders.
That simply means you enter the trade at the current market price. 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. In the example below, we can see a bullish pin bar signal that formed in the context of an up-trending market.
Any time you see a point in the market where price initiated a significant move either up or down, that is a key level to watch for pin bar reversals. Pin bars can also be traded in combination with other price action patterns. So, think of it like this: How to trade with Fakey Patterns Fakey patterns can be traded in trending markets, range-bound markets or even against the trend form key chart levels. The most common entries for a Fakey signal include the following: Enter as price breaks back past the inside bar or mother bar low or high, following the initial false-break.
This can be an on-stop entry or an at market entry. This is another common form of the Fakey signal to watch for as you analyze and trade the markets: Since this Fakey signal was so nice and obvious well-defined and it had the confluence of the key support level under it, it was a counter-trend Fakey worth taking: We can see the dramatic sell-off that followed this bearish Fakey: Tips on Trading the Fakey Pattern: Just remember that if you have an inside bar pattern, followed by a false-breakout of that inside bar pattern, you probably have a Fakey pattern.
Dinesh April 28, at I changed my opinion on that… thanq … nial fuller sir Reply. Khaleeq ur Rehman March 22, at 1: Thank you dear Sir you are really unique person in teaching forex trading in simple way, Thankx a lot Reply.
Rahmat February 19, at I will use this pinbar tactic with my EMA indicator. Nomcebo Treasure Shongwe January 23, at 3: Adamu musa November 11, at 5: We all owe u a sincere appreciation u are an angel on wall street Reply. Mark April 24, at 7: Zucy March 11, at 8: Helo Nial,i appreciate your kind generousity.
Jaye Pahl August 24, at 3: Thanks for shaving a lot of time off of the learning curve. Hi Nail, I am a newbee to forex investing, i am at the point of gathering information to make sence of the whole forex trading. Sanaa June 17, at God bless u in abundance…… Ur the best Web Teacher Reply.
ANIL April 30, at 5: Thanks Nial, I like your way of explaining the strategy, quite easy to understand. Very good article Reply.
Russell April 6, at 7: Noshee February 4, at 2: Hi Nial You have done a great job in explaining the Pin Bar. Akande November 27, at 5: Nice info man, it helps a lot! Dr Isaac Ade September 20, at 3: It gave me insight to how those candle sticks works. God bless you Nial Reply.
I have seen manifestations of these ideas Reply. Tipu January 29, at 9: Wow thanks i m gonna learn pinbar price action Reply.
Paresh September 18, at 5: Particularly interested in trading on pin bar formations Reply. Thank you so much sir for a lot of the tutorials and advices like this. You have helped a lot of traders out there who are interested in price action. Gary August 8, at 6: Masood June 9, at Gautam May 11, at 4: Giridhar May 2, at Marlon April 1, at Daniel March 8, at 2: Thank you very simple explanation. Forensa October 29, at 6: Okoyeocha October 15, at 8: Ivan Sonavia October 14, at 4: So simple and clear explanation about the pin bar formation.
A very good article for newbies like me. Haroun Kola August 15, at 3: Olorungbemi June 13, at 1: Am happy to come across this post am now becoming expert thanks Reply. Thanks Nial for this strategy Reply. YY May 30, at 8: Thanks a lot Nial, you are definitively become my Mentor: Kend F March 11, at 3: Nial Thanks for all your tips.
I look forward to your e-mails… Reply. December 13, at 2: David October 7, at 1: Sebastian Norman July 27, at Ismail Abdul-Aziz July 24, at 4: Kindly feed me back if possible…! July 24, at 4: Nial, This new member recently emailed you for guidance structure on how to best use the provided course materials.
Thanks again — Larry Reply. Guanmounho June 27, at 1: Marinus June 16, at Justin June 15, at 1: I tried this method and I made a nice little profit. John Lavi June 14, at 8: Ian Millar May 14, at Many thanks for this. Paul March 16, at David March 16, at Melodie February 12, at 1: Thank you Nial;- Reply. Very easy to undersatand. Umesh Banga November 13, at 6: Ade August 29, at Mayowa June 18, at 7: Very nice and clear concept Nial….
Chris Spaulding June 15, at 1: Dean June 12, at 7: Hi Nial, Im just heard this trading with price action.. Vijay June 1, at 6: Carlos Pinon March 3, at 3: Have a nice day… Carlos Reply.
Hastings February 28, at 2: Nial, Very clear explanation of the strategy. Thanks you for sharing this with us. God bless you Reply. T Allen February 26, at 2: Nial Very good layout and very well explained.
Thanks for these continued lessons that remind us that all we need is Price Action. Have a great day!! Chau Nguyen February 26, at 1: Hi Naial, Thank you for sharing this simple and effective pin bar technical analysis.
Larry February 26, at 1: Thanks again Larry Reply. Henry February 26, at 1: Hi A well-written very clear article on this strategy.
The black horizontal lines on the image define the inside bar range — the high and the low of the pattern. When the price exits the inside bar range, we expect that the price action will continue to move in the direction of the inside bar breakout.
Can Forex Trading Be Taught? So simple and clear explanation about the pin bar formation.