FREE DOWNLOAD Forex Pin Bar Price Action Trading System – Price action is among the most popular trading concepts and a trader who knows how to use price action the right way can often improve his performance and his way of looking at charts significantly.
However, there are still a lot of misunderstandings and half-truths circulating that confuse traders and set them up for failure.
In this article we explore the best and the most important price actiontrading system (Pin Bar Price Action Trading).
Pin Bar Price Action Candle
The actual pin bar itself is a bar with a long upper or lower “tail”, “wick” or “shadow” and a much smaller “body” or “real body”, you can find pin bars on any stripped-down, “naked” bar chart or candlestick chart.
We use candlestick charts because they show the price action the clearest and are the most popular charts amongst professional traders.
Many traders prefer the candlestick version over standard bar charts because it is generally regarded as a better visual representation of price action.
How to Trade a Pin Bar Formation
The pin bar formation is a reversal setup, and we have a few different entry possibilities for it:
“At market entry” – This means you place a “market” order which gets filled immediately after you place it, at the best “market price”.
A bullish pin would get a “buy market” order and a bearish pin a “sell market” order.
ForexWOT Pin Bar Price Action Trading Rules
ForexWOT Pin Bar Price Action Trading System Filtered with Trend Momentum indicators is a trend following multi time frame strategy based on the Bollinger Band Stop indicator and RSI Filter.
- Best Time Frame : H1 or higher (D1 Time Frame for maximum profits)
- Markets: Currency pairs (majors), Indicies (S&P 500, Nasdaq, Dow Jones, DAX, FTSE) Commodities (Silver, Gold and Oil).
- Pin Bar mod,
- Signal Trend
- Ichimoku Tenkan-Sen
- IFX_Center_of_Gravity (Optional)
- Bollinger Band Stop (20:2),
- RSI Filter (14 period),
- HBH bar (1-15),
- 5 simple moving average (optional)
Trade only in direction of the major trend.
If you want trade 4h time frame, open daily chart and check the trend after open the 4H chart and trades in direction of the trend of daily chart.
How you check the trend? Simple:-Bollinger Band Stop and RSI Filter must be agree.
- Pin Bar Mod (Green ARROW) below the Pin Bar Candle,
- Bollinger Band Stop blue dot,
- HBH bar doger blue,
- RSI filter blue bar,
- IFX_Center_of_Gravity (Optional) upward
- Signal Trend green bars
- Pin Bar Mod (Red ARROW) above the Pin Bar Candle,
- Bollinger Band Stop red dot,
- HBH bar doger red,
- RSI filter red bar,
- IFX_Center_of_Gravity (Optional) downward
- Signal Trend red bars
Correct Market Selection
Building a watchlist prior to your trading is important and market selection is a very misunderstood concept in trading.
Let me give you an example from my trading: Every Sunday I sit down and go through all of the 15+ forex pairs that I consider trading.
However, usually only 6-8 make it on my actual trading watchlist for the week ahead.
And the main reason why the others get cut is because of low probability price action which usually means tight congestions, squeeze consolidations and narrow ranges with a lot of volatility.
An effective market selection is important and you should only look for markets that offer clear price action and stay away from markets that are too erratic and noisy.
Don’t make this mistake of being too fixated on the pairs you trade – rotate them and ONLY FOCUS ON MARKETS WITH GOOD PRICE ACTION.