IN THIS SECTION WE WILL LEARN HOW TO IDENTIFY PIN BAR CANDLES AND HOW TO FORM PIN BAR CANDLES
I. Identify pin bar candles
Pin bar consists of 3 parts as shown in the picture:
– Shadow >= 2/3 Total:
+ For example: Total = 100 pip, Shadow = 100*2/3 = 66 pip
– Body :The smaller the Body the better and lie near the Nose.
– Nose : Nose as small as possible, may not have.
II. How to form a pin bar candle
– Pin bar price increases is formed when: when prices break out of a key support level, and a large amount of buying leads the price back above that support level. with pinbar reduction is the opposite.
– The Pin bar is formed because the Exchange Funds or Banks place a large amount of transactions there.
– Usually appear at support or resistance levels.
– This model works best in large time frames D1, W1 ..
– And we will trade in the trend of Pin Bar.
End of part 1, part 2 will introduce tactics to the order with the Pin bar.
WE WILL HAVE TWO WAYS OF DEALING WITH PIN BAR CANDLES
Depends on market perception and condition
I.Way 1 : Break of the Pin bar Nose entry.
– Enter the order when price breaks Pin bar .
II.Way 2 : 50% Pin bar .
– We can wait for price to return to 50% of Pin bar for sale or sell at resistance
III. Set SL and TP
Part 3 will guide identify real Pin bar and fake Pin bar
Pin bar candles part 3 – Real Pin bar and fake Pin bar
n fact, it is very difficult to make a beautiful Pin bar like Part 1. We have the following criteria to choose a Pin bar to trade:1. Size of Pin bar: The Pin bar should not be too small compared to the previous candles because of its very low efficiency.
2. Price and Time :Pin Bar formation time is very important, it determines whether the market really goes in the direction of the Pin bar or a fake breakout + The following is a fake Pin bar.
+ A Pin bar for good signals must be like this
3. Test areas of Support and Resistance :when the Pin bar has tested the area and overcomes it, it shows that I have tested its price and the selling power is not enough to get a lower price.
Checked the area, the selling was not enough, and the price started to go up.
If the area has not been tested yet, it is likely that prices will fall below and then increase.If the price drops will touch SL
4. Trend combination:
This is very important, because in the transaction never goes against the trend of the price
After considering the factors, we see this is a nice Pin bar to sell, but why touch sl.Let’s see the price trend.