Pinbar Forex Trading System — a popular strategy for entering and exiting positions that is based on the particular candlestick pattern and the following price action. The Pinbar (also known as "Pin-bar" or "Pin bar") pattern was first introduced by Martin Pring in his Pring on Price Patterns.
Features
-Conservative strategy offers low-risk high-yield opportunities.
-No-loss rate is pretty high if break-even is applied.
-Rare occurrence.
-Timing is critical.
-Support/resistance is difficult to formalize.
Strategy Set-Up
Any currency pair and timeframe should work, but longer-term timeframes (such as H4, D1 and W1) should work better.
Pattern consists of three bars: the left eye, nose and right eye. The left eye should be a bar up for the bearish Pinbar pattern or a bar down for bullish pattern. Nose bar should open and close inside left eye, but its high (or low, for the bullish set-up) should protrude much farther than left eye's high (or low). Both nose bar's open and close should be located in the bottom (top, for the bullish set-up) 1/4 of the bar. The right eye is where the trading happens.
An additional condition for the good pattern set-up is the strong support/resistance level formed either behind the eyes or near the point of the nose. The stronger are the support/resistance levels you incorporate into this pattern, the more accurate it will be.
Entry Conditions
Aggressive entry option is to enter a position when in the right eye price retreats behind the left eye's close level.
Conservative entry point is below (above for bullish set-up) the nose bar.
Exit Conditions
Conservative stop-loss can be set behind the nearest support/resistance level behind the eyes. A less conservative approach would be to set stop-loss to immediately behind the nose bar point (in this case, your reward/risk ratio may suffer).
Conservative take-profit can be set immediately after the left eye low (high for the bullish set-up). Aggressive take-profit level may be placed farther — to the next strong support (resistance for bullish positions) level.
Features
-Conservative strategy offers low-risk high-yield opportunities.
-No-loss rate is pretty high if break-even is applied.
-Rare occurrence.
-Timing is critical.
-Support/resistance is difficult to formalize.
Strategy Set-Up
Any currency pair and timeframe should work, but longer-term timeframes (such as H4, D1 and W1) should work better.
Pattern consists of three bars: the left eye, nose and right eye. The left eye should be a bar up for the bearish Pinbar pattern or a bar down for bullish pattern. Nose bar should open and close inside left eye, but its high (or low, for the bullish set-up) should protrude much farther than left eye's high (or low). Both nose bar's open and close should be located in the bottom (top, for the bullish set-up) 1/4 of the bar. The right eye is where the trading happens.
An additional condition for the good pattern set-up is the strong support/resistance level formed either behind the eyes or near the point of the nose. The stronger are the support/resistance levels you incorporate into this pattern, the more accurate it will be.
Entry Conditions
Aggressive entry option is to enter a position when in the right eye price retreats behind the left eye's close level.
Conservative entry point is below (above for bullish set-up) the nose bar.
Exit Conditions
Conservative stop-loss can be set behind the nearest support/resistance level behind the eyes. A less conservative approach would be to set stop-loss to immediately behind the nose bar point (in this case, your reward/risk ratio may suffer).
Conservative take-profit can be set immediately after the left eye low (high for the bullish set-up). Aggressive take-profit level may be placed farther — to the next strong support (resistance for bullish positions) level.