October 27, 2017

Forex Trading strategies with the Pin Bar

Forex trading strategies with the formation of a pin bar reversal pattern is usually the price action indicating the refusal (rejection) at a certain price level. A trader who has been familiar with this formation will easily earn profit with open positions at bar after the formation of the pin bar. The following description of the pin bar formation as forex trading strategies and how to exploit it.

The definition of the pin bar
PIN bar is an abbreviation of the term names a candlestick bar-shaped elongated 'pinocchio ' bar. The candlestick had the tail (tail) or the wick (wick) which is longer than the body (body). PIN bar is often found in everyday and trading chart can appear on all time frames.
Forex Trading strategies with the Pin Bar
Characteristics of the pin bar
A pin bar has a tail longer than its body. The tail is also referred to as axis or shadow(shadow). The length of the tail indicates the power of refusal (rejection) or occurrence of error break (false break) at a certain price level. The long tail is getting a pin bar then it will be more valid pin bar, in which case it means the higher the sentiment of rejection of a certain price level.
More and more small body narrow or a pin bar then it will be more valid pin bar.
In general it can be concluded that a pin bar is considered valid if the length of the tail is roughly two-thirds of the total length of the bar pin.
The other side of the tail called the ' nose ' (nose). The shorter the nose will be more valid pin bar.

Formations are bullish and bearish pin bar reversal
Bullish pin bar reversal usually form on the State of the downtrend and indicates the possibility of inversion occurs after an uptrend towards the rejection of certain appropriate level indicated tail pin bar, while bearish pin bar reversal formed on the State of the uptrend and showed the possibility of a reversal in the direction of downtrend after a rejection of a certain price level.
Forex Trading strategies with the Pin Bar

The tail on a bullish pin bar reversal formations are on the bottom of the body because it shows refusal to penetrate the lower price level, while the tail on a bearish pin bar reversal formations are on the upper body because it shows refusal to penetrate the higher price levels. Due to the characteristics of the formation of a pin bar is a bar that is jutting out between the bars before and after, then confirm the validity of the pins bar is at the bar after the bar pin was formed.

Confirm pin bar reversal
In order for a bullish pin bar reversal long then unconfirmed candlestick bar after the bar pin (body and tail) entirely should be higher than the lowest level pin bar and closure rates must be higher than the closing price of bar pin. While for bearish pin bar reversal confirmed then the length of the candlestick bar after the bar entirely pin must be lower than the highest level of bearish pin bar, and closure rates should be lower than the closing price of bar pin.

Examples of formation reversal pin bar on the chart trading
Here's an example of some of the bullish pin bar reversal that formed on the CAD/JPY daily chart. Keep in mind that the higher the trading time frame then it will be more valid a pin bar as long as it has been confirmed. This is because the likely error rate price movement (noise) on the higher time frame (typically 4 hour upwards) will be smaller than the time frame is low (below 1 hour). Therefore, the examples in this article are made on the daily time frame or 4 hour.
Forex Trading strategies with the Pin Bar

As shown in the picture above, all the pins bar has been unconfirmed and shows the State of a bullish reversal. The important thing to note is that in this example the color of the body a bullish pin bar doesn't have to be white, or the closing price is higher than the opening price, but it could also be the opposite (black). Note only the main characteristic pin bar, a bar that is jutting out between the bars before and afterwards.

Example on USD/JPY daily here is the formation of a bullish pin bar reversal that is considered perfect:
Forex Trading strategies with the Pin Bar

In addition to the bar pin-tail is quite long (more than two-thirds the length of the pin bar) and jutting out, body pins bar is also a minimum or opening price equals closing. These formations are exactly the same with a doji indicating a balance between bullish and bearish sentiment, or markets that are group. After the doji unconfirmed pin bar, then quickly moving towards a price uptrend in line with the market's decision to bring prices to a higher level. The pattern of reversals of direction as in the example above, also referred to as ' V ' bottom reversal, because the pattern that resembles the letter ' V '.

PIN bar formed at market conditions are currently trending will tend to have a high probability as in the example the GBP/JPY daily here, where bullish pin bar reversal formed at each end of the retracement (correction). Note that the bullish pin bar the first (left-most) are not confirmed until the bar pin is not valid.
Forex Trading strategies with the Pin Bar

Forex Trading strategies with the pin bar formation

Often times the pin bar formation indicates trend direction reversal patterns (reversal pin bar), although there is also a bar pin hinted at the forwarding direction of trend. There are 3 possible ways for entry at a bar after bar pins, namely:
Forex Trading strategies with the Pin Bar

- Market entry: entry at the market price which is considered the best at the time. Entry buy when formed bullish pin bar reversal, and sell if the entry is a bearish pin bar reversal.

- Stop entry: namely, the pending order buy stop ' form ' for bullish pin bar reversal and ' stop ' to sell bearish pin bar reversal. The value of the pending order buy stop must be higher than the market price, and the value for the stop sell order should be lower than the market price now. Stop loss level be determined a few pips below the lowest level pin bar (to buy stop), or a few pips above the highest level pin bar (to sell stop).

- Entry limit: the pending order buy limit ' form ' for the bullish pin bar reversal and ' sell ' limit for a bearish pin bar reversal. The value of the pending order buy limit must be lower than the market price, and values for sell order limit must be higher than the market price now. Stop loss level be determined a few pips below the lowest level pin bar (to buy limit), or a few pips above the highest level pin bar (to sell limit). Limit entry is based on the assumption that the typical price movements will retrace or undergo a correction when it has reached 50% of the length of the tail, or the 50%Fibonacci retracement level.

It should be noted so that the probability of entry we do is high, then it is recommended for entry at a bar after the pin bar only if accompanied by the supporting factors are strong enough, among others, the level of support or resistance, Fibonacci levels retracement or expansion especially 38.2%, 50% or 61.8%, and curve moving average indicators as the level of support or resistance.

An example of trading with the pin bar reversal on a sideways market conditions
On the chart of the EUR/USD daily here looks bearish pin bar formed in the resistance of the key (the key resistance). This situation is often referred to as rejection or refusal on the resistance level because prices have failed to break through the level, or also called with false break.
Forex Trading strategies with the Pin Bar

After the formation of the bar pin then the likely price will move back towards the downtrend. In this case the trader could use the sell limit order to entry, i.e. with a pending order sell limit at 50% of the length of the tail pin bar. For a sideways market conditions like in the example, the risk/reward ratio can be quite high because the take profit can be determined at a level close to support.

An example of trading with the pin bar reversal on trending market conditions
The following example bearish pin bar happens to moderate downtrend market conditions:
Forex Trading strategies with the Pin Bar

In this case the pin bar formed supported by rejection of static resistance (horizontal line resistance) and dynamic resistance curve i.e. exponential moving average (ema) 8 and 21 ema. PIN bar like this usually have a high probability, and entry could be done by means of market entry or stop entry. From the price movement was going on, the pin bar indicates the forwarding direction trend (downtrend).


www.ayeey.com www.resepkuekeringku.com www.desainrumahnya.com www.yayasanbabysitterku.com www.luvne.com www.cicicookies.com www.tipscantiknya.com www.mbepp.com www.kumpulanrumusnya.com www.trikcantik.net

Post a Comment