Pin Bar Trading

[Deleted]  

Folks,

I am introducing Pin Bar Trading, I am developing this method from FF, I respect them a lot, but I want to avoid any conflicting interest, that's why I post in this forum.

I develop a Pin Bar Indicator and it is still evolving, I think this forum can give me more support, because many of the members already like indicators, well my primary indicator is not averaging indicator, but more like simple pattern recognition.

But one thing I want to make sure, I am not ready to share the source code of my primary indicators yet, but I will share the indicators that I modify from another ones.

Will people here be alright with that condition ?

If you want to know more about Pin Bar and other setups, you can always look into FF thread or join the PF, and remember this thread is not official to them, this is just my creativity.

I am going to show some candies first, and gradually posts more.

My short-term goal would be to get few decent settings for the indicators, this is likely come from backtest.

My medium-term goal would be to get alerts with helpful information along with the charts through e-mails, of course, I need to get along with certain pairs and feel the ins and outs before interpreting the alerts itself.

My long-term goal would be to create automated program to do this, well it will be semi-auto first, but I think I need to let the idea out, because more initiatives into it.

So, if you can accept it, we go for short-term first.

If you want to give a negative post, please be nice to me, and if I make mistake, please correct it nicely.

I hope this thread will move forward in anyway.

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droesparky
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droesparky  

I havent read to much on pinbars, but seem to remember someone saying the open and close of the pinbar had to be inside the open and close of the previous bar. Is that right?

dosnt seem to be what your pics show.

[Deleted]  
droesparky:
I havent read to much on pinbars, but seem to remember someone saying the open and close of the pinbar had to be inside the open and close of the previous bar. Is that right? dosnt seem to be what your pics show.

You mean inside previous bar high/low? That is true, but we have different feeds from brokers, we need to have tolerance for those PBs, let's say for D1, brokers have different server time, so it produce different bars, but they should looked alike but not necessarily below the eye (previous bar high/low).

But a perfect PB should do that, and we need more than that fact to categorize a bar as PB.

Here is another example, again these are the successful ones.

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eurusd_w1.gif  13 kb
eurusd_d1.gif  14 kb
fred
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fred  

Keep up this thread

I know someone who subscribed to the James website that actually trade 4hour and Daily Pinbars, he does very well as they offer a decent risk/reward ratio. If someone could successfully create an alert when a 1/4 hour and daily/weekly pinbar appears on the chart, it would be a very useful tool, espeacially when you are scanning through lots of currency charts!

If anyone can do it, the guys on this site can, as they are the best on the web...

[Deleted]  
fred:
I know someone who subscribed to the James website that actually trade 4hour and Daily Pinbars, he does very well as they offer a decent risk/reward ratio. If someone could successfully create an alert when a 1/4 hour and daily/weekly pinbar appears on the chart, it would be a very useful tool, espeacially when you are scanning through lots of currency charts! If anyone can do it, the guys on this site can, as they are the best on the web...

Creating alerts is a work in progress job, but what's more important is how we come up with the statistic of backtest, for example I usually do a little backtest in higher Time Frame such as this one.

PBs (should we call this Pin Candle ? later you will know why I use candle type for this) are quite easy to spot, long nose, small open and close, small inside area etc, but to make the computer help us, we need to define those into numbers, that's why we have to look for the numbers, that's when the indicator is used.

And then, I put more weighting factor to determine different types of PB, well, it's not firmed yet, but there is a strong and weak PB, there is a reversal and trend continuation PB, if PB is in ranging or trending. So to determine that, I use short-term MA, it's 3 period of Simple Moving Average with Median price (H+L)/2. So when you see MA4, it means the difference between 4th bar (to the left) to current bar, and then I put an average of that MA4 with 50 period of Simple Moving Average, so I can calculate % of the move.

Those numbers won't be useful yet, but it gives us certain objectivity over hunch, let's say if % of MA1 is less than 50%, it is not scored high, because the move is not significant.

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goldensight
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goldensight  

About two years ago I was playing around with metatrader and found that when you do the following you can see some of the pin bars on your chart.......click on properties and then click on colors and then change the bar up to the color blue and the bar down to the color blue and then click ok you will have gold colored pin bars that "pop". You will not get the same effect if you change the bull candles and bear candles to blue, but if you first change the up bar and down bar using bar charts and after clicking ok you can then click on candlesticks and they will show up there. However these gold pin bars pop out best on bar charts. If you review your charts after changing the color scheme you will find that it does not show all of the pin bars but rather only a percentage of them but I thought I would share this in case anyone wants to use it for a quick at a glance visual for quickly viewing some of the pin bars that occur on price charts. On the weekly charts these gold highlighted pin bars show up rarely, on the daily bars occasionally, on the 4 hour bars often, and on the one hour bars frequently. cheers

trevman
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trevman  

why is your pin bar a pin bar but my two not.. as far as i can see they have matching patterns

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[Deleted]  
goldensight:
......click on properties and then click on colors and then change the bar up to the color blue and the bar down to the color blue and then click ok you will have gold colored pin bars that "pop". ...

goldensight,

This PB has been around for a while, hammer is the name for candlestick pattern, and there is another nick name like this but I forget, but it seems the most popular one is PB, so I think we better stick with this name, unless there is a copyright issues.

About bar and candle usage, they focus on different area, you can easily see how high and low compared to other bars (zoom in and zoom out will do that), while candle focus on open and close, of course they both show the same information.

I know you already know this, so this is not directed to you, it serves as supporting information.

Regarding your tip, I did a little work and it shows all blue bars, anyway I will introduce PB detection indicator soon, based on PB statistic we already analyze.

[Deleted]  
trevman:
why is your pin bar a pin bar but my two not.. as far as i can see they have matching patterns

Both of the bars show short nose (around 30%) and quite high inside area (>30%), eventhough they may succeed, we wouldn't claim it as PB.

As you can see, we wouldn't know it unless we put some numbers around it, so anyway we can, we better come up with quantifying things, so when in doubt we can always refer to it, of course we can overrule it when in manual trading, they only serve as information.

Just hang on for a while, I am restructuring user interface for PB statistic.

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goldensight
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goldensight  

Hey there mason,

Just to clarify, what I meant by the word "pop" was not the name of the bar it is when one particular color stands out against another color in contrast it kind of "pops out", this is an English language slang term. When you try my tip it shows pin bars, the example you gave is on the Monthly charts and it does NOT show up on monthly charts, it shows up on daily, 4hr, 1hr, 30 minute and below. Try a lower time frame and you will see. If not interested not a problem, my post was mostly meant for newbie traders so they can easily see a few pin bars before your indicator is completed. I personally trade using price action as my main indicator too just like yourself, so I am always happy to see someone on a forum talking about about price bars. Below find a snapshot of eur/usd 4 hour chart from September using my tip. I will only post this one picture because I don't want to take up any more space in your thread. Have a great weekend. goldensight

mas0n:
goldensight,

This PB has been around for a while, hammer is the name for candlestick pattern, and there is another nick name like this but I forget, but it seems the most popular one is PB, so I think we better stick with this name, unless there is a copyright issues.

About bar and candle usage, they focus on different area, you can easily see how high and low compared to other bars (zoom in and zoom out will do that), while candle focus on open and close, of course they both show the same information.

I know you already know this, so this is not directed to you, it serves as supporting information.

Regarding your tip, I did a little work and it shows all blue bars, anyway I will introduce PB detection indicator soon, based on PB statistic we already analyze.
Files:
droesparky
756
droesparky  

goldensight what you see is the bars that open a close at the same level,

thats because in properties you have the line graph with color lime.

they are not pinbars at all.