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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Video: Live Trade Setup – Pin Bar Signal On 4 Hour GBPUSD Chart

2014-04-15T23:13:48+00:00
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By in Forex Trading Videos Last updated on | 64 Comments
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In this video lesson I discuss the 4 hour Pin Bar reversal signal that just formed on the GBPUSD chart. The signal formed at the key support level of 1.6680 in the direction of the prevailing up trend. This buy signal suggests price could potentially push higher into the recent high at 1.6820.
Please remember to leave a comment and share it with other traders. Enjoy…  Nial

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Hi Guys, Nial here from learntotradethemarket.com and welcome to another trade setups video. I just spotted a live pin bar trade on the British Pound 4-hour chart and I thought I’d walk you through the trade and explain the logic in my entry…

I want to draw your attention this level here at 1.6680. You can see the market did move up to this level, rotated down and then finally broke up through the same level and now we have just cushioned back to this level at 1.6680.

This is obviously an important inflection point or swing point in the market. The fact that we are just holding here and we’ve just seen a nice 4-hour pin bar reversal signal does suggestion to me that prices want to try and push higher, back up towards that 1.6820 level which is the recent high point on the chart.

So, the logic is, if this level here is holding (1.6680) we will see prices move back up to this recent high. But, there’s a little bit more in this that I just want to explain to you…

One thing we can do is just quickly go to the daily chart and we can see that the price is generally trending higher. Yes, it is choppy but we are trading with the path of least resistance, which his upward. If we do zoom into the 4 chart we can see that nice upward momentum.

I’m going to zoom in further and just explain this signal in detail. So, what I’m looking for with my trading is not only trading with the trend and at key levels, but I look for a trigger or confirmation. In this case it’s this pin bar reversal here, it’s actually a long-tailed 4-hour pin bar reversal, it’s something that I teach my students and it’s one of my most common strategies or most common entries, usually trading it on a daily or 4 hours or 1-hour chart.

Now, we do have a quality signal here and I want to explain to you how I’m going to get in, where I’m going to place my stop and where I’m going try and get out of the trade. So, we have this level here at 1.6680, obviously, I’m going to try and get a long entry or buy the market as close to that support level as possible. So, I’m going to try and buy it around here, so I’m going to place a limit order in so if the market does rotate down near to 1.6680 I will be in a long position. I’m going to look for the market to head up towards to 1.6820 which is around about 140 points away. So, let’s say about a 120 to 140-point target and I’m going to place my stop well below the low of today’s pin bar which is below 1.6640, I will try to get it well below 1.6640 somewhere down around here. Obviously, I will monitor the market ton an intraday basis every four to eight hours and just monitor the price action. Hopefully, this works out, so it will be a nice 2 to 1 risk reward, the way that I’ve worked that out is 140-point target and with a stop loss around 6o to 70 points, obviously 70 goes into 140 twice, so it will be a 2 to 1 risk reward.

Now, there’s a good chance that I might not actually get filled on this trade. As I said I am waiting for the market to rotate down towards the 1.6680 – 1.6700 support area, if we do end up getting down to that entry area I will be in a long position. Hopefully, things work out and price does move up toward s the target area around 1.6820. Obviously, things could go wrong that’s why we have the stop loss in place, which as I said before it will be below the low or the tail of the pin bar here.

Really hope you’ve enjoyed today’s video. See you in the next video and good trading.

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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 20,000+ students since 2008. Checkout Nial's Professional Forex Course here.
  1. Gilbert May 16, 2014 at 3:34 am

    Once again I want to thank you for your insight. The charts you post have been a tremendous help to me. I am beginning to understand your method and has made my trading career so much more pleasurable. Thanks again.

  2. shaki ahmed May 11, 2014 at 5:15 pm

    Hi Nial,
    this is my first introduce of your video lesson.This is helpful for me .
    thanks & best regards

  3. Ibrahim May 5, 2014 at 3:02 am

    Thank u, I need to spread the news to other newbies like me. bye for now

  4. Ann April 26, 2014 at 2:16 am

    Thanks Niall.Pin bar price action signal is my favorite ,no doubt I enjoyed this video.You remain my mentor!

  5. Paul Jiya April 23, 2014 at 1:38 pm

    MY mentor thanks for sharing your four hour chart trade. It is a great eye opener. Thanks once more.

  6. john April 22, 2014 at 9:33 pm

    nice explanation Nial. thanks very much you

  7. Mohammad Aminul Islam April 22, 2014 at 7:29 am

    I am involved with Forex more than 20 months. But I found no FX analyst/ Forecaster/ Trade setter like Nial Fuller. Many thanks Nial Fuller.

  8. Matthias April 18, 2014 at 7:10 pm

    Thank you Nial, I was watching this closely and from the knowledge of your previous videos and course material I was able to apply two potential entries, one of which was triggered. Whenever such ‘edge’ surface I always thank you in advance.

  9. rhc970 April 17, 2014 at 10:10 am

    Thank you Nial. I found this setup when the daily turned into a pin and found the 4HR support agreement. This trade worked out nicely. I really appreciate your work and making PA understandable.

  10. swede April 17, 2014 at 8:43 am

    great call….now I had gbp/jpy 4 hour up at the same time and the subsequent bars did indeed retrace over 50%of the pinbar for the entry long (gbp/usd did not)….and yikes…..it was good…..very good…Thanks Nial

  11. RR April 17, 2014 at 6:21 am

    very useful has always thank u nail

  12. James Dominguez April 17, 2014 at 3:45 am

    Great Video Nial, I hope you will continue to create video to better explain market scenario and trades before taken or after. This will increase trust amongst all your followers and newcomers. Thanks for your time and wisdom Nial. You have done a great job teaching others to become successful like you. Thanks once again!!

  13. ENATHAN April 17, 2014 at 12:40 am

    Hello Nial.Thank you for sharing the video analysis and it is good lesson.

  14. chandra shekar s April 16, 2014 at 7:08 pm

    Good explanation. Thanks

  15. Ahmed April 16, 2014 at 5:52 pm

    Thanks a lot Nial.

  16. Stewart April 16, 2014 at 5:26 pm

    Well, have to say on the 1 hour chart there have been 5 touches and minor pullback off the local resistance, so prices need to push through or likely to fall off!

    I have to say I love Pin Bar trading, at key reversal points and with high volume they are mostly reliable. Have traded these since I first traded in 1999!

    I am new here, but enjoying your tutorials Nial, very interesting, I am always learning!

    Thank you.

  17. Sebopeho April 16, 2014 at 5:14 pm

    Cheers! Simple and understandable, thank u so much!

  18. Ben April 16, 2014 at 3:41 pm

    Hi Niall,
    I have seen in the past you teach to have a long entry order just above the high of the pin bar candle with a stop below the pin bar tail. Then calculate minimum 2:1 based on the size of the pin bar candle. Eg: 66 point pin bar x 2 is a TP 132 points above the pin bar high. Risk/reward 2:1.

    Why are you waiting for the retracement? Is it just to get a better risk reward?

    Thanks, love your work.

    Ben

    • Nial Fuller April 22, 2014 at 5:26 pm

      Correct, just a better risk reward and a more conservative entry. You can of course just enter the pin bar at market price or on break out of the high, it’s your decision.

  19. mark April 16, 2014 at 3:06 pm

    hi Nial,
    Mark here thanks for the great current video on GBP/USD,as a member of your trading community i find this very helpful and hope you can do more of these in the future.
    thank you

  20. Isabel April 16, 2014 at 2:29 pm

    Thanks for sharing this information !

  21. Adam April 16, 2014 at 1:46 pm

    Hi Nial, thanks for the video analysis. It would be really helpful to your students, if you could provide more of this type of video tutorials. Thanks

    adam

  22. Chuks April 16, 2014 at 1:35 pm

    I have also been trailing this pair and will definitely long on retracement. It helps that current Day Price action provides a more robust context for a long order. Looking at my longer term TF, I believe the pair is ripe to run at 1.7050 resistance. That would be my ultimate target once I can be filled in at 1.6695.

  23. Khalid April 16, 2014 at 8:59 am

    This is an easy trade Nial as there’s congruity between D1 and H4 time frames. Quite often it’s not this simple as D1 and H4 trends seem to be heading in opposite directions. Many times a new H4 setup actually sabotages a valid D1 trade – maybe other readers can relate to such situations – how does one go about dealing with such uncertainty?

    • Nial Fuller April 16, 2014 at 2:21 pm

      The daily chart always take priority, especially in an established trend. IF the 4 hour and daily chart signals ‘align’, it’s typically a higher probability play. If you have a 4 hour and daily signal that are opposing, that makes things more difficult. If in doubt, I always look to the daily chart and key levels for clarity.

      • shaki ahmed May 11, 2014 at 5:16 pm

        thanks

  24. paul April 16, 2014 at 8:23 am

    just noticed the large 4 hour tail bar that has formed had done so having hit the 61.8 fib level.

  25. trend2 April 16, 2014 at 6:19 am

    Great Video and watch , i am long and waiting the big movement.
    Regards

  26. Jared April 16, 2014 at 6:06 am

    Hi Nial, what if it doesn’t retrace, but instead just goes straight up? Will you also place a Buy Stop on the break of the pin bar?

    • Nial Fuller April 16, 2014 at 2:12 pm

      On this occasion, I will only enter on a retrace. I won’t chase prices or change the type of entry unless I see another signal.

    • Nial Fuller April 16, 2014 at 2:22 pm

      No, I won’t chase the trade.

  27. Gytis April 16, 2014 at 5:57 am

    Hi Niall,

    I have also noticed this pin bar and set a pending order. I’m just wondering why you put the SL so far away from the pin? Wouldn’t it be enough to set SL only a few pips lower of the pin tip thus increasing the risk/reward ratio?

    Thank You for sharing that.

    • Nial Fuller April 16, 2014 at 2:13 pm

      Hi, the level of 1.6680 is most important here. I want my stop well below that level and well below the low of the signal bar.

    • Nial Fuller April 16, 2014 at 2:23 pm

      If the stop is too tight, you might get shaken out.

  28. Pawel April 16, 2014 at 5:28 am

    I was not gonna trade this one, cause R/R was not high enough for me, but with the strategy of waiting for the price to retrace lower… maybe I’ll try this one. Thanks for the video :)

  29. john April 16, 2014 at 5:11 am

    excellent video nial, i actually prefer your video explanations and analysis to the daily chart commentaries.

  30. Kiss_More April 16, 2014 at 3:26 am

    Thanks for sharing this video Nial…The only different perspective is about S.L…In my opion a S.L around 1,6650 it will be ok and will give a great risk/reward 1:3…If the market retrace deeper i see very low possibilities to return bullish again…Thanks again for your time sharing your thoughts with us.

    • Nial Fuller April 16, 2014 at 2:14 pm

      Each trader will trade the signal differently. I have my plan, you have your plan. Good luck.

  31. Joe Palsson April 16, 2014 at 3:06 am

    Great video with great explanation. A limitorder in place!

  32. Brett Reynolds April 16, 2014 at 2:51 am

    Nice to hear/see your doing some live stuff again Nial. I havn’t watched a video of yours for months now.
    Ps. I was on this earlier today when it formed. Good news on the Pommie pound.. Back in London now after 5 mths sunning my Buns around Hope Island..;-)

    • Nial Fuller April 16, 2014 at 2:24 pm

      Cheers Brett

  33. Ivan April 16, 2014 at 2:29 am

    Great Video Nial . The best way for place an entry order with the odds in favour.

  34. donato April 16, 2014 at 2:02 am

    i wish i could see more of these videos on real time like today. i really like your way of trading.
    happy easter and keep up with your wonderful trading

  35. Igor April 16, 2014 at 1:50 am

    Great Nial. I miss more videos like that, when trading signal appear. I’m searching for those signals, but it is always good, when we have you on our side of equation :) .

  36. martin April 16, 2014 at 1:44 am

    Nial, thanks for that, great example of what we need to look for. I know you are a busy guy but it would be good if we had more video’s during the week.

    Cheers Martin

  37. Marcel April 16, 2014 at 1:29 am

    Many of Your inputs are great..You are great trader and mentor. I did not have any so far, but PIN BAR is important and maybe the most important….
    My opinion, now is time to watch price as well, due to the uncertainty of market.
    Marcel

  38. Timothy April 16, 2014 at 1:15 am

    I really enjoy this lesson on pin bar.Its my favourite set up I always look up at confluence area
    Please keep up your good work,grateful.
    I am Timothy,Nigeria

  39. saeed April 16, 2014 at 12:59 am

    thanks dear Nial …

  40. Stewart April 16, 2014 at 12:55 am

    Sorry, 41.1 pip gain, missed that . dot

  41. LAKIS April 16, 2014 at 12:54 am

    ok, but what if your buy limit will not filled at the next few bars, and jump to the up side? do you think that you sould also set a stop buy 10pips above the last top????

    • Nial Fuller April 16, 2014 at 2:16 pm

      Won’t be chasing the market. The plan for this trade was a ‘conservative’ entry near support at 1.6680 area. If the market moves up before that happens, I will miss out. I will obviously keep my eye on the 1 hour and 4 hour charts for another price action signal.

  42. Oral April 16, 2014 at 12:53 am

    this looks good Nial thank you

  43. Emmanuel April 16, 2014 at 12:50 am

    thanks for your labour of love

  44. Stewart April 16, 2014 at 12:47 am

    Yup, took that one on a 15 minute, long at 1.66822 when prices had come back 50%of the large down bar to catch the bounce up. Stopped out at 1.67233 for a 411 pip gain. Got in again long and still there at 1.67387. PSL 1.67091 PT 1.67809. Happy trading.

    • Stewart April 16, 2014 at 12:50 am

      I should have said, in the 4 hour it looks like a pin bar, in the 15 minute a 2 period reversal! I agree, very positive Nial, thanks for your commentary! OBV is moving upwards to support this idea!

  45. David April 16, 2014 at 12:46 am

    Hey Nial, this pin looked very good, I have actually traded it from the head of the pin and the stop below.
    We will see.
    As usual, great video!

  46. JP April 16, 2014 at 12:24 am

    Thanks Nial for posting your video so fast. Cheers.

  47. noha April 16, 2014 at 12:24 am

    I already went long at 1.6725 tp at 1.6840
    I agree with u it’s going up
    thanks

  48. andy moore April 16, 2014 at 12:23 am

    Good spot, Nial. I was already in on this trade on my demo account with a long long a few days ago. It’s been a bit wobbly as it went down a fair ways but had a long stop so now into the black…a bit. I will keep an eye on this though.
    Thanks, mate.
    Andy Moore

  49. John April 16, 2014 at 12:20 am

    Great nice pin bar. Everyone will like it. Cheers.

  50. Milutin April 16, 2014 at 12:20 am

    Great video! Plain & simple… and teh best of all: LIVE… cos GBP/USD is riding as we type…

  51. Buho April 16, 2014 at 12:14 am

    Hi Nial,
    many thanks for posting this live setup.
    Good Trading.

  52. Abdulwahab April 16, 2014 at 12:13 am

    Amazing i just took that trade 4hours ago…

    i just checked my email now and i saw the new lesson vid haha what a nice coincidence.:D

    …but i placed my s/l 1 pip away from the low of the pin…
    Good luck 4 both of us Nial!

    Nice work.

  53. Dmitriy April 16, 2014 at 12:10 am

    Hi Nial. Thank you very much that you spread those moments when it pays a buy signal.

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