Thank you for visiting this blog again; it's because of you I am here to write not just because i love to write, but because of you i am here also or else, they will be no reason to write. To avoid the long story, let us go straight
into the business of the day: What is a pin bar Price Action setup?
what is Pinocchio Bar?
Yea of course the pin bar is a short form of what we call the Pinocchio Bar. It is a single candle stick setup that clues Price Action traders to spot a potential reversal that may occur in the market. Less i forget please note that the Pin bar Price action setup is used by Traders to only trade reversals that locks around.
When you look at the diagram below it shows both the bullish and bearish pin bars and all the pins are pointing upwards and downwards.
The first middle candlestick in the structure is the bearish Pin bar which shows a rejection of a high price at a resistance level; while the second middle candlestick in the structure is the bullish Pin bar which shows another rejection of lowere price at a particular support level
And in most of the cases we normally spot it when a particular strong uptrend or downtrend is about to end therefore signaling a possible price reversal. A Pin Bar is an elongated wick that 'stick out' from Price Action. Traders normally look for one sided wick that are 2 times the size of the normal
candlestick body.
A Pin Bar must have the following Criteria:
into the business of the day: What is a pin bar Price Action setup?
what is Pinocchio Bar?
Yea of course the pin bar is a short form of what we call the Pinocchio Bar. It is a single candle stick setup that clues Price Action traders to spot a potential reversal that may occur in the market. Less i forget please note that the Pin bar Price action setup is used by Traders to only trade reversals that locks around.
When you look at the diagram below it shows both the bullish and bearish pin bars and all the pins are pointing upwards and downwards.
The first middle candlestick in the structure is the bearish Pin bar which shows a rejection of a high price at a resistance level; while the second middle candlestick in the structure is the bullish Pin bar which shows another rejection of lowere price at a particular support level
And in most of the cases we normally spot it when a particular strong uptrend or downtrend is about to end therefore signaling a possible price reversal. A Pin Bar is an elongated wick that 'stick out' from Price Action. Traders normally look for one sided wick that are 2 times the size of the normal
candlestick body.
A Pin Bar must have the following Criteria:
- Open and Close within Previous Bars
- Candle wick must be minimum 2 or 3 times size of candle body
- Long nose protruding from all other bars
Please look at the diagram above and summerise what a Pin bar is: Remember it is used to show the rejection of a higer or a lower Price at a particular level of resistance or support.
In conclusion
The bullish Reversal Pin Bar
In conclusion
The bullish Reversal Pin Bar
In a bullish Pin bar setup, the pin bar tail faces down because it shows rejection of lower price or level of support. This setup often leads to rise in price.
The bearish Reversal Pin Bar
In a bearish Pin bar setup, the Pin bar tail points up because it shows rejection of higher price or level of resistance. This setup often leads to drop in price.
In the part 2 of this topic i will complete the other stuffs you need to know about Pin Bar and how you should trade them if spotted. So if you must become a price action trader, then you must understand that the Pin bar setup is a must have in your trading arsenal. In fact, this setup picks out winner 70% of the time. Maybe in my next post i will show you use this setup to pick winners.
But untill then.
I am Wealth Peters
CEO and Head Coach, Pips Akademy
Saying: Be a great Trader
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