Pin Bar Trading

9 October 2014, 15:29
Abbas Makki
2
529

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Pin Bar :a pin bar is candle with long upper or lower ( tail ) ( wick ) or ( Shadow ) and a small real body .

The pin bar shows that a certain price or level in the market was rejected .

Below in pic a bullish and bearish pin bars :

 

 Trading the pin bar :

if a bullish pin bar formed you can trade it in three ways :

A: place a buy stop above the high of the pin bar ( wait till the market break the pin bar high and buy it ) with placing a stop loss lower 1 to 10 pips from the low of the pin bar .

B: place a buy limit order on 50% of the pin bar and stop loss  lower 1 to 10 pips from the low of the pin bar .

c: buy market order when the pin bar closes with a stop  lower 1 to 10 pips from the low of the pin bar

 

 

and trading  on bearish pin bar will be vise versa