Forex & Stocks Pin Bar Trading (Recognizing Profitable Pin Bar Patterns)

Candlestick patterns are among the most favored tools for traders. They’re considered easy to use and often have good accuracy in trading analysis.

There are many types of candlestick patterns, each providing information about what might happen next in the forex market. One commonly used by traders to find entry signals is the pin bar. Typically, the pin bar pattern is a key component in analyzing trend reversals.

This time, I’ll delve into a strategy or trading technique using the Pin Bar on the daily time frame.

A Pin Bar is a type of candlestick that’s elongated, sometimes referred to as a pinocchio bar. This candlestick has a longer tail or wick compared to its body. Pin Bars are often spotted on daily trading charts and can appear on any time frame. To easily recognize a pin bar candle, take a look at the picture below.

The longer the tail and the shorter the body, the more valid a pin bar is considered. Usually, pin bars are widely used in reversal trading strategies to predict price reversals, allowing traders to open positions as early as possible.

In its use, the chosen time frame significantly affects the accuracy of this candle. The higher the time frame used, the better the accuracy of the pin bar. It’s recommended for traders to use this pattern on time frames of H4 (4-hour) or higher to reduce price noise.

• Download “ForexWOT-PinBarSystem” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWOT-PinBarSystem.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWOT-PinBarSystem” trading system and strategy.
• You will see the “ForexWOT-PinBarSystem” is available on your Chart.

This strategy mainly relies on the pin bar candlestick as a signal for entry. To determine the entry point, use the Fibonacci Retracement tool drawn from the High to the Low of the pin bar candle.

For the best results, it’s highly recommended to follow these setups:

• Use the daily time frame.
• Look for pin bars in trending conditions (Downtrend/Uptrend).
• This strategy works on all forex pairs but is suggested for major pairs.
• Combine it with Fibonacci Retracement for placing Pending Orders.

It’s important to note that using the daily pin bar trading strategy doesn’t always guarantee profits. Sometimes, traders might face losses when the market is influenced by uncertain sentiments.

To minimize unwanted risks, it’s advised that traders try this daily pin bar technique on a demo account first. Additionally, to enhance the accuracy of trading entry signals, traders can also seek further confirmation using supporting technical indicators