Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

daedalus

How Would You Define a "Pin Bar"?

Recommended Posts

I'm really trying to focus on trading pure price action and candlestick analysis to advance my trading and one of the setups I really am trying to expand on is the "pin bar" setups.

 

Many of you know what these are... heres an example of a few...

 

pin-bars-from-trendlines-audjpy1.gif

 

My question is do any of you have set rules on what qualifies a pin bar as an actual pin bar?

 

I would like to code up a rule set in easylanguage so for backtesting I could at least see at a glance potential entries. Obviously this would just be a rough approximation but it would make things much easier.

 

But to do that I need to understand what really makes a pinbar and pinbar. They are obviously not the same as a hammer candle so for long setups High <> Close and vise versa...

 

Is there any kind of "the wick should be greater than 50% of the candle" kind of rules or anything like that?

 

Any concrete rules that I could code would be appreciated. I'd be happy to supply the completed .eld and .pla when finished.

Share this post


Link to post
Share on other sites

Here in the CC, your 'pin' bars can be referred to as a few titles:

 

1) Hammer (one of my personal faves)

2) Doji

 

From there, you can get offshoots such as inverted hammer, gravestone, doji, etc. I could care less that we call them but wanted to get them out of the way.

 

In your example, you are basically looking to buy hammers. Easy enough in theory.

 

From there it's a matter of defining what type of trend we are in. If my analysis says we are in an uptrend, I would look to buy as many hammers as I could, as you've done here. That's contrary to the standard candlestick work out there that says hammers are reversal points. Here we are using pin bars / hammers to buy in an uptrend, which is a good idea IMO.

 

So the real question at hand is - when do we buy the pin/hammer? How is the trend going to be identified? Once you have decided that it's time to get long, then it's a matter of looking for our pin/hammer friends. We can call them PAMMERS or HINS.

 

;)

Share this post


Link to post
Share on other sites
I'm really trying to focus on trading pure price action and candlestick analysis to advance my trading and one of the setups I really am trying to expand on is the "pin bar" setups.

 

My question is do any of you have set rules on what qualifies a pin bar as an actual pin bar?

 

Have you read trader dante's stuff?

Share this post


Link to post
Share on other sites

If you had entered all those bars you identified above using a BUY STOP 1 Tick above the high you would have avoided the stop out. Your entry method can also be helpful when trading these bars.

 

The other thing I would add is stick to trading these bars on higher timeframes as they are more evident to all traders. 5, 9 or 15 Minute charts as an example.

Share this post


Link to post
Share on other sites
Have you read trader dante's stuff?

 

Well worth a read, recommended. He was partly inspired by James16 over at FF. Some people have quite strict criteria on the 'eyes' others more lax. I think Pring coined the phrase.

 

From Martin Pring on Price Patterns by Martin J. Pring,

 

“Pinocchio bars are bars in which the bulk of the trading takes place outside the previous and subsequent trading range.”

 

“The character Pinocchio tells us when he is lying because his nose gets longer. In the case of the Pinocchio bar, it is the trading beyond the resistance or support level in question that indicates that the signal is false.”

Share this post


Link to post
Share on other sites

Yea I am looking at using these in conjunction with prior s/r and db/dt's, and possibly clean swings with fib retraces.

 

Entry on the break of the high/low of the bar in the opposite direction of the wick (obviously).

 

Thanks for all the comments and help gents. I've got some massive reading to do with the dante thread.

 

I had read most of the James16 thread about a year ago before it ballooned to 2200 pages. Good stuff in there.

Share this post


Link to post
Share on other sites
Yea I am looking at using these in conjunction with prior s/r and db/dt's, and possibly clean swings with fib retraces.

 

Entry on the break of the high/low of the bar in the opposite direction of the wick (obviously).

 

Thanks for all the comments and help gents. I've got some massive reading to do with the dante thread.

 

I had read most of the James16 thread about a year ago before it ballooned to 2200 pages. Good stuff in there.

 

I don't know that you need to do massive reading. Most of it is examples.

 

The dynamic here is rejection. The trick is to figure out how important is whatever it is that's being rejected. Therefore, you have to carefully define -- as you know -- whatever it is you're testing for rejection. DTs, DBs, and Fibs should be fairly easy, or at least fairly straightforward. Swing points and trendlines might be another matter entirely.

Share this post


Link to post
Share on other sites

^^ Exactly. Which is why i'm gonna avoid the swing points and trendlines. That stuff is much more subjective IMO and i'd rather just wait for solid areas on a chart to look for reactions with as little interpretation as possible.

 

Thanks again for your help gents.

Share this post


Link to post
Share on other sites

when you look at a pin bar-wick-doji or other name -the first thing you should realize is who made it--a pin bar located at the start of a trend is usally a bigger timeframe player coming into the mkt-by bigger timeframe player i am refering to big money traders who will probably hold overnite and will also protect their position by adding on if challenged---if a oin bar happens near the end of a trend it is usually caused by late small traders who think the trend is going to continue and the opposite side of their trade is the big guys covering--just a observation from 30 years of trading-gl on coding-i honestly will tell you that this is a thinking mans game -not a mathematicians game

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.