Nial Fuller's Price Action Forex Trading Community

Nial Fuller

Nial Fuller is a Professional Trader, Mentor & Author who is considered 'The Authority' on Price Action Trading. After starting this blog in 2008, he has become one of the most widely followed trading mentors in the world with a monthly readership of more than 250,000 traders across 100 + countries including Australia, Singapore, UK, Malaysia, Canada & USA. Read More

Sign Up For Free

Get free trading videos & articles

Pin Bar Candlestick Reversal Trading Strategy

Facts About Trading Forex with Pin Bar Reversal Strategy

Pin bars are one of the most popular of my price action trading strategies. They show a clear rejection of a price level and are often followed by a large directional move opposite the direction of the rejection. However, it takes a skilled and discerning eye to find high-probability pin bar setups that are worth risking your hard-earned money on. Thus, you will need to learn what a valid pin bar setup looks like, as well as when and how to trade them. Like anything else in life, pin bar trading takes education and then practice, so let’s get started by learning some facts about pin bar trading:

Pin Bar Fact: A Pin Bar is “NOT” a hanging man or doji candle. It’s a unique candle which shows rejection of a level via an obvious spike, or tail, much larger than the entire body. It’s only a valid pin bar “setup” if it forms in the correct place, otherwise, its nothing to take notice of. In other words, just because a candlestick has the form of a pin bar does mean it’s a trade-worthy pin bar signal.

Pin Bar Fact: We want to trade a pin bar in the opposite direction the spiky tail (also known as the shadow) is pointing. So, a bullish rejection pin bar is one that rejects lower prices and thus tips off to take a long position or buy the market, while a bearish rejection pin bar is one that rejects higher prices and thus tips us off to take a short position or sell the market.

Pin Bar Fact: Trading the pin bar strategy on higher time frame charts like the 4 hour and daily time frame, is a much higher probability way to trade them than trading them on the 5 minute or other low time frame charts.

Pin Bar Fact: We don’t just trade any old pin bar, because not all pin bars are created equal. We want to trade pin bars that form at swing lows in an uptrend or at swing highs in a downtrend. Ideally, we want to see a pin bar make a rejection or a “false-break” of a key level. Essentially, we want to trade pin bars with confluence, or at high-probability levels in the market.

Pin Bar Fact: We can also watch major EMAs (exponential moving averages) for pin bar setups. The main EMAs that I use are the 8 and 21 period EMAs on the daily chart time frame.

Pin Bar Fact: Pin bars can be traded successfully in both trending and range-bound market conditions. This fact makes it one of the most versatile Forex trading strategies out there.

Now that you know some solid facts about Forex pin bar trading you can try trading them on a demo account. You will want to focus on trading pin bars in trending markets first, as that is the highest-probability way to trade them. You can learn a lot more about trading pin bars in the context of both trending and non-trending markets in my price action trading course and members’ community, click here to learn more.

July Forex Course Membership Special: This Month Get Life-Time Membership To My Forex Courses, Daily Trade Setups Newsletter, Live Trading Forum & Email Support Line – For More Info Click Here.
nfpic1

About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 15,000+ students since 2008. Checkout Nial’s Forex Course here.

5 comments - Click Here to Leave a Comment

  1. Watson says:

    Thanks sir…………..

  2. Brodwyn says:

    Great tips here. Thank you.

    75+ % SR on the daily is incredible. IMHO, just mastering this edge exclusively should be enough for a trader (at least for a long time).

    Can the nose break OR 50% retracement entry both be attempted in a trade with the OCO (Order Cancels Other) feature in a platform?

  3. Prashant Chakravarty says:

    Dear Sir,

    I was thinking of concentrating on 3 or 4 often occuring signals like inside days , It was an eye opener that pinbars are not hanging man. Please accept my heart felt thanks for putting up this wonderful site, I will sure go through all the pages and videos.

    Thanks and Regards
    Prashant Chakravarty

    New Delhi India

  4. Amit says:

    Great job Nial

  5. danc says:

    Well said.. Nial.. thankyou

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

Copyright 2008-2014 Learn To Trade The Market
legal

Proudly Sponsored By