Pin Bar Trading System
Timeframe: H4 and above
This trading system is very easy to use and just need a few minutes minutes per day to scan the charts and try to identify if we have a trade signal or not. The system need a BAR CHART to work with and it looks for a specific bar which is called the PIN BAR. Here is how a pin bar looks like.
This strategy works on H4,D1 and higher timeframes.
The strategy consists of indentifying these pin bars and then place pending orders accordingly.
A Pin Bar is a bar which has a long tail and the close/open are around the same level or a little apart.
Once you identify a PIN BAR, you choose the FIBO tool from your trading platform and you place a the fibonacci levels on the PIN BAR. After doing so, you place a PENDING ORDER at 50% retracement level of the PIN BAR as follows:
As you can see above, we have an UP PIN BAR, so we place a PENDING SELL ORDER at 50% retracement of the PIN BAR after it has closed! We place the Stop Loss just a few pips above the high of the PIN BAR.
As for the Take Profit, you can use a fixed takeprofit level or you can use a trailing stop to trail your profits.
This system is has a high Risk/Reward ratio. You risk very little per trade and the reward can be 10x the risk.
The examples above are for a sell situation, for a buy situation, you just reverse the rules. It is very easy for anyone to do that I guess.
Some points worth noting and should be observed as close as possible!
1. Wait for the Bar to close before you decide to do anything with it.
2. Make sure the pin bar has appeared at a support or resistance level, a fibonacci retracement level or bounced off a trendline.
3. Bring your trade at beakeven as soon as you can.
4. Risk less than 5% per trade.
As with any system, you should practice it for quite some time on a demo account so that you can get the mastery of it. You will be doing errors etc at the first time so it is better you do them on a demo account. After a few weeks of practice, if you find this system to be suitable for your own trading, then you can move on to your live trading it. This system really works and it is really for free. Be patient and practice to become perfect.
I hope that this system will be of the benefit of everyone. Hope to hear back... All the best.
I have been using this system for about 3 months, having tried a lot of other systems I keep coming back to this one.
Mondays is a nightmare, the 1 hour catch up on sunday night, then the opening at 0000hrs really causes a problem ( I am GMT +1).
When you hit the right set up there are masses of pips to be made.
If you are brave and let the trades run their course there are hundreds of pips to be made. Of course there are loses but thats life.
I only trade the daily chart.
Very cool to have you around Felix... i propose you post some of your trades here... or you can keep a trade journal in the journal section... it will be helpful to more than one here...
All the best
Ah thanks boss for sharing!
I wonder how reliable this system is. I noticed lots of PIN bars in my chart. I think there could be a lot of false positives and negatives.
Yeah there could be... this is why we need to watch pin bars at special places such as support/resistance levels, pivots, fibonacci retracements or bounce on an established trendline.
I looked the charts a moment ago, and it appears to be quite a solid system. Here's a screen shot of a string profitable trades.
Here's the chart in white background, if you prefer white black against white.
All have been said... some rules were burnt... some nice trades as well!
is this system not thesame as trading the hammar at support and resistance and at pivot levels using candlesticks because the pinbar looks exactly like a hammar?
It might be the same... i guess a pin bar is called a hammer in candlesticks language... Its an old trading system.
HELLO SIR I THING THAT THE PIN BAR IS LIKE A SHOOTING STAR OR HAMER ON THE CANDLE STICK SHART.
BOTHE WAYS THANK YOU.