In the above forex trading education price action video I discuss a setup that occurred in the NZDJPY. The NZDJPY was in a downtrend, we then got a pin bar that occurred at a horizontal resistance area and at the 21 day ema, showing rejection of this resistance and agreeing with the overall downtrend.
I entered the setup the next day after the pin bar on a 50% retracement of the setup. My stop loss was about 70 pips wide and my target was set at around 1:4 risk, this means 4 times risk. I made about $9,000 on this setup, profit.
When there is a trend I am going to follow that trend and try to trade in the direction of the trend, watching the moving averages and support or resistance areas for price action setups. Pin bars work well from large levels in the market, if you are trading counter trend you want to see price action setups at very significant and obvious levels. When trading with the trend a setup can be a bit more subdued, as long as it is obvious and forms near some dynamic support or resistance level which is the same as moving average support or resistance. This video shows how to trade the pin bar reversal.
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