Reminder: Save 30% Off Nial Fuller's Pro Forex Trading Course & Daily Trade Setups Newsletter (Ends August 31st) -
Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

author thumb
By in Forex Trading Strategies on | 25 Comments

Trading Pin Bar Signals with Support and Resistance Confirmation, is perhaps one of the most effective ways to trade forex, if not thee most effective way to trade. This article will show some examples of trading pin bars from key levels. Follow along closely because this is likely to be one of the most powerful Forex trading strategies you will ever learn.

Pin bars are one of the most valuable tools that price action traders have in their Forex trading arsenal. They often form at major market turning points, correction levels, or within a trend as continuation signals. When combined with a strong support or resistance level, pin bars can be one of the most accurate trading signals available. The best pin bar setups occur near confluent levels of previous price action as the market moves in one direction and then regresses back to re-test a previous support or resistance level. We can see in this daily chart of EUR/USD two successive pin bars testing a previous support and resistance level and then resuming downward movement

eurusd11

Pin bars occur in all market conditions; up trends, down trends, and range bound. The beauty of price action analysis is that it teaches you how to analyze market movement based on inherently generated data; namely price data. Reversal bars taken at confluent levels can act as a map to long-term profits in the forex market. Trader’s can design a highly profitable trading method entirely around pin bars if they so desire. The more confluence added to a pin bar formation the more accurate it becomes. We can see in this daily chart of GBP/USD below a beautiful pin far formed at a previous support/resistance level with the up trend and also at a Fibonacci 61.8 retrace level. The more confluence you can combine with a pin bar signal the higher its accuracy becomes.

gbpusd1

Pin bars are adaptable to ever-changing forex market conditions and can be very profitable even in ranging markets. They can be very accurate if the formation is clear and obvious and combined with solid support or resistance confirmation. We can see in the daily chart of EUR/JPY below two very well formed counter-trend pin bars that formed off support in a range bound market that netted some serious gains for traders with a keen eye for price action analysis. Pin bars of this clarity and magnitude can be entered after the close on a market order.

eurjpy1

Pin bars can be taken at major market turning points counter-trend if they are very well formed. Often times long-term trend changes are set off by large pin bars that can result in some serious gains for traders aware of the potential. The daily USD/JPY chart below demonstrates how a large, well formed pin bar can tip off traders to longer-term changes in trend direction. Often times trend changes will occur rapidly and form what is called a “V” bottom with the bottom bar being a pin bar.

usdjpy1

When pin bars form at the top or bottom of a consolidating market that is taking a breather after a large directional movement they can often signal trend resumption is near. In the daily chart of USD/CAD below we can see multiple pin bars formed at the top of a range bound market that was most recently in a large down trend. The last pin bar on the right side of the chart set off a very powerful move that resulted in a breakout of the range and subsequent downward trend resumption.

usdcad1

In conclusion, pin bar reversals are a great price action tool that forex traders can use in all market conditions. They are best played at confluent levels with strong support and resistance confirmation. Pin bars taken with the dominant daily trend are generally more accurate than counter trend pins. However, counter trend pins can set off long-term directional bias changes that can mean serious cash for traders with a trained eye. Pin bars work great at the tops and bottoms of range-bound markets and provide very accurate setups in these conditions. For further explanation and on-going market analysis on pin bar setups please check out my forex price action trading course and live member’s forum.

You may ALSO be interested in the following lessons …

author image

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 Professional Forex Course here.
  1. Dale Kevin December 11, 2016 at 6:00 pm

    Hey Nial. I really admire you helping out lots of traders and im one of them. Now I stick into Price Action trading and follow your footsteps. God bless you!

    Reply
  2. Daljit Singh Kalkat July 17, 2016 at 7:53 am

    Nice to be part of a professional trader and hoping to succeed on pure action base trading

    Reply
  3. aamir July 20, 2014 at 10:12 pm

    thank yo
    u

    Reply
  4. rajesh vishwakarma June 26, 2014 at 9:53 pm

    Great article on how to focus on behaviour of pin bar on any chart and make good trade..Thanks Nial a very good article

    Reply
  5. Jamey February 22, 2014 at 12:32 am

    Very gud article, helpful.

    Reply
  6. Buba January 11, 2013 at 11:20 pm

    how can i identified a pin bar.

    Reply
  7. Benjamin August 22, 2012 at 11:12 pm

    Hi Nial. I jst read your article nd i have alredy begin 2 have confidence in my self. I wil adopt the price action formular and see what its brings. I realy hope 2 b sucesful so that i would pay for your course fultime. Tanks. Am benny

    Reply
  8. Poda October 3, 2011 at 8:23 pm

    HI Nial:
    Very comprehensive… thank you. By the way…my experience in trading is very poor and is very easy to understand. Good on you. Keep the good work.

    Reply
  9. AMIN MALIK October 2, 2011 at 1:00 am

    NAIL!Thank you so much. You are training many of us to join
    Forex Trading Community successfully.Your each lesson is
    INFORMATIVE & HELPFUL.Keep it up,May GOD REWARD YOU.

    REGARDS, AMIN MALIK

    Reply
  10. Tim September 22, 2011 at 6:13 am

    Thanks Nial for keeping us informed

    Reply
  11. yakub qudus September 16, 2011 at 8:51 am

    Nial,you are truely the MAN.

    Reply
  12. Robert September 13, 2011 at 5:21 am

    PinBars + Confluence = Outstanding Trade Signal

    Thanks for this easy formula, Nial!

    Robert

    Reply
  13. wilfried August 5, 2011 at 8:46 pm

    Thank you Nial for sharing your knowledge with us!

    Reply
  14. mark May 17, 2011 at 5:18 am

    i want to use this avenue to say thank you to you for the great work your doing on behalf of some many people who cant afford the cost of attending the elite training. i mut say that a few of the thing that i have read from your article has really put me on the right part as regards this business. thanks and remain blessed.

    Reply
  15. moses May 13, 2011 at 12:26 am

    i want to specially thank you for your selfless giving to many that dont know like you do.
    i am implementing what you said about pinbars and their set ups and it is working.
    i am going to save money and pay for the course, thank you nial.
    you are one in a million.

    Reply
  16. moses May 12, 2011 at 10:01 pm

    i have read your articles just this 2 days and i already have confidence.

    Reply
  17. ohuizu May 11, 2011 at 8:49 am

    Nial you are simple great

    Reply
  18. joaquin February 21, 2011 at 6:20 am

    the only thing i can say is that you are more than great, and your articles and video as well.
    thanks, thanks a lot

    Reply
  19. xback February 20, 2011 at 4:18 am

    thanks nial…

    Reply
  20. ahmed February 19, 2011 at 11:06 pm

    thx boss. you are the greatest among the traders.

    Reply
  21. Chuka November 6, 2010 at 1:22 pm

    Nial is simply awesome! Pin Bars are so obvious and effective I wonder how I have missed them all this while…
    Thank you man!

    Reply
  22. galen July 31, 2010 at 6:01 pm

    This article scarce me somewhat. Keen eyes and experience in reading charts will come in due time. This material can be over whelming. I understand when you say learn one setup (master it) then move on to another price action setup. It is good to be scared; as a tool for learning.

    Reply
  23. ope July 17, 2010 at 2:57 am

    these are marvelous!!!

    Reply
  24. ali July 1, 2010 at 11:40 pm

    Well, i can say that these pin bars are ready to trade any time a trader wants them to trade……

    thanks Nail

    Reply
  25. jean April 25, 2010 at 5:29 am

    The more I read your articles and watch your videos, the more I become confident!

    Your work is GREAT !

    THANK YOU!!!

    Reply

Leave a Comment

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