the Forex market is one of the most complicated tasks in the world. More than
96% of retail traders are losing money since they don’t have the skills to
analyze the price movement with a high level of accuracy. Most of the time,
naïve traders are using complicated indicator based trading system and losing
money. So, is there is any way we can easily learn to make a profit at trading?
Well, the answer depends on your learning and adaptability skills. No matter
which trading method you choose, you need to understand the strategy from the
there are different types of trading method, the price action trading strategy
has gained huge popularity over recent years. The strategy is based on the
different formations of the Japanese candlestick patterns and the pro traders
use the reliable candlestick pattern to execute trades with an extreme level of
So, do we need to
learn hundreds of candlestick patterns?
true, that you can trade the market by using more than hundreds
of candlestick patterns. But memorizing
all this pattern is a very complex task. So, how does the pro traders deal with
the different candlestick patterns? The answer lies within their simple
approach. Experienced price action traders love to trade the most powerful
candlestick pattern so that they have a higher percentage of winning trades.
Today, we are going to discuss about the simple pin bar used by the pro UK
Use of simple pin
pin bar is a single candlestick pattern that is usually found at the bottom of
a downtrend or the top of an uptrend. Usually, the pin bar acts as the price
reversal pattern. Identifying the pin bar is easy since it has a smaller body
and a long wick or shadow. (Usually, the wick is at least three times longer than
the body). Based on the direction of the wick, we can identify the nature of
the pin bar.
Execution of the
need to look for the bearish pin bar when the price hits a critical resistance
level. To execute the long orders, you need to find the bullish pin bar when
the price hits a critical support level. But make sure you always use a
professional broker so that you don’t have to deal with technical problems
while analyzing the complex price movement. Get
more info about the broker before you start
investing a big sum of money. Once you find the right broker, start placing the
stops. Make sure you also learn about the stop loss placement so that you don’t
have to risk a big sum while trading the critical levels using the pin bar.
traders usually place the stop right above the tail of the pin bar for the
short trade setups. For the long entry, the stops are usually placed below the
tail of the bullish pin bar. However, you should not be using too tight stops
as the market often hunt down the tight stops.
the pin bar trading strategy is based on a single candlestick pattern, the
traders are advised to use the pattern in the higher time frame (preferred time
frame: H4, D1, W1). Naïve traders often think this pattern is only used to
trade the reversal. But the pin bar can also be used to find the endpoint of
the retracement. For example, let’s assume the EURUSD pair is in a strong
uptrend. All of sudden the price started to drop in the EURUSD pair. The sudden
drop in the price is known as
bearish correction and it’s most likely to
end near the minor or major support level. To find the endpoint of the bearish
correction, look for the bullish pin bar.
must be clear that the pin bar works as an excellent pattern to execute the
trade. But learn to use this pin bar in the demo account so that you can trade
the market with confidence. Trade with low risk to keep your capital safe.