Below Is a Video of a Daily Chart Pin Bar Signal On AUDUSD Currency Pair. This Is a Trade I Posted Live on 16/1/2012. I Wanted To Share With You All How I Do My Analysis and What I look for on the charts before entering a trade. Please do not use this as trading advice and make your own decisions before entering any trades.
Here is The Risk Reward Trading Tutorial I Talked About In the Video
Video Synopsis – AUDUSD Daily Chart Pin Bar Reversal Setup
In the above video, I talked about a bullish reversal setup, trading with the trend, plotting levels and trading in a "swinging market".
I am looking at the daily chart time frame in the above video and we are looking at the last few months of price data in the AUDUSD. I draw in the key support and resistance levels on the chart first. Then it's determined we have a sideways market overall with a short-term bullish trend.
In the above video, I entered a long trade (buy entry) based purely on the market's price action. As I say in the video; there's never going to be the exact same setup twice, but what we are looking for a is a trading "edge", this is a repetitive price action setup that we can use to enter the market from. In this video, I am talking a bullish pin bar setup that formed in the AUDUSD that signaled that lower prices were being rejected and that price wants to move higher. A tail on a bullish pin bar signals bullish momentum whereas a tail on a bearish pin bar signals bearish momentum.
In the pin bar in this video I talk about the 50% retrace entry, this is a pin bar entry strategy I discuss in my courses and members area. I talk about placing my stop loss just below the pin bar low which is the typical stop loss placement on a pin bar setup. After defining your stop loss level you need to find a logical target area to place your exit target. I typically look for a risk reward of 1:2 or greater, depending on the surrounding market structure.
I close the video by talking about the fact you will have losing trades sometimes, and I have them sometimes and I do talk about them as you'll see in my commentary...I'm not afraid to talk about losing trades. But, hopefully if you have a solid edge like price action, you can put the odds in your favor over the long-run and make money.
Related Trading Lessons
MARCH FOREX COURSE SPECIAL: This Month I’m Offering A Special Discount On My Forex Trading Courses, Daily Trade Setups Newsletter, Live Trading Forum & Email Support Line – For More Information Click Here.