How to Trade the Pin Bar

[Johnathon 10]

The Pin Bar is a Price Action formation that can be found on any timeframe in any market. The Pin Bar or full name Pinocchio Bar, is given its name because the signal is lying to the market or tricking traders that price is going one way when in fact it is reversing back the other way.

 

The Pin Bar and in particular the better Pin Bars are the bars that stick out and are very obvious. The less well defined Pin bars and smaller Pin Bars are generally the trades we don’t want to be trading.

 

A Pin Bar must have:

 

- Open and close within previous bar

 

- Candle wick minimum 3 times the length of the candle body

 

- Long nose protruding from all other bars (must stick out from all other candles)

 

 

Bearish Pin Bar example

 

Pin Bars can be traded in all sorts of markets. Pin Bar formations are reversal signals. Often you will find Pin Bars are the signals that are produced when an existing trend is changed.

 

 

Bullish Pin Bar Changes the Trend

 

 

Pin Bars can also be traded with the Trend

 

 

Traders will be able to spot this very easily identifiable Price Action formation all over their charts. Just because a Pin Bar has been produced in the markets does not mean that it is a tradeable setup.

 

Traders also need to learn:

 

- Where to trade Pin Bars from in the market

 

- How to manage the stops on Pin Bars

 

- What are the best Pin Bar to trade

 

- How to enter Pin Bars

 

- How to manage the trade that allows as minimum risk as possible

 

- When to take profit

 

- When not to take a Pin Bar setup

 

- The best type of market to trade Pin Bars

 

I hope you enjoy this article,

 

Johnathon Fox

[fxtrader12 10]

Unreliable on its own. Always remember as rule, that previous (historical) results are independent of subsequent (see official version of probability theory). Any idea built on previous price action is BS.