Pin Bar - my favorite candlestick pattern for trading price actions
Pin Bar was my favorite candlestick pattern back in those days when I was doing manual trading many years ago.
And even now, it still remains my favorite for trading price actions. If you are not aware of what a Pin Bar is, you should take a second look.
When a Pin Bar appears it usually resembles a strong price rejection indicating a reversal that is about to happen.
The Pin Bar is a single candle price pattern and it usually comes with a short body and a long wick that sticks out from the neighboring candle bars, making it obvious to notice.
It is usually formed by an initial surge of momentum that elongates the length of the candle bar, and then followed by another surge of momentum in the opposite direction that creates the long wick.
When interpreted correctly, the Pin Bar carries a high degree of accuracy, and is a very much respected price action pattern even by the big players.
But of course, nothing is perfect in Forex, even the best price action setup will fail at times, so does the Pin Bar.
You can have the best Pin Bar setup appearing on your chart but the price can always just go against the Pin Bar setup for some reasons.
So this is when the Grid Hero's averaging algorithm comes into play. In circumstances when a Pin Bar fails, Grid Hero will activate Grid mode in creating a basket of orders and then uses its averaging algorithm to close out the basket with profits.
Basically with Grid Hero, even a failed Pin Bar can be turned into profits instead of taking losses. A very common phenomenon that often happen is that sometimes the price will retrace against the Pin Bar going beyond the wick and stopping out the typical traders who usually like to put their SL a few pips away from the wick end. And then after that the price will go back in the original direction of the Pin Bar which will frustrate the heck out of the typical traders who were earlier being stopped out. Grid Hero's core averaging algorithm is to counter such phenomenon.
Just over the last 2 weeks, we see 3 good Pin Bar setups in the EURUSD chart that were traded by Grid Hero and brought us some easy profits.
Defining a Pin Bar can be quite tricky sometimes as you need to draw out the best rules where a Pin Bar gives the best accuracy.
Rules like the overall length of the candle bar, the length of the candle wick, the size of the candle body, the placement of the body on the candle, the proportionality of the body vs the wick, the body color, and the neighboring candles, etc.
And the best way in determining the best Pin Bar rules that can whether thru long term market is none other than using historic real tick data in helping you to find the best Pin Bar setup.
So as you can see, a Pin Bar looks fairly simple, but there are a lot of things to consider behind the scene when coding it. And then you need to test out different variations over long term to get the most reliable Pin Bar setup.
And here you have it in Grid Hero, in my opinion the most reliable Pin Bar rules that work best with Grid Hero's core averaging algorithm.
Likewise for all the other price action patterns that are built into Grid Hero, they are all designed with strict rules and vigorously tested to get the best setups.
The recent Spinning Top setup on 1 Dec is another great example of a good price action setup that Grid Hero traded.
Manually trading price action was a very popular technique back in the past, but now you can have Grid Hero doing that for you on auto pilot, non-stop around the clock.
So you can eliminate the screen time, and spend some valuable time with your love ones.
Remember... Forex is not everything. There are more important and meaningful things in life that we should be focusing on. And one of them of course......is to enjoy your life :)