Below, I discuss the Pin bar reversal trading method with my 50% retracement advanced tweak entry on the daily NZDUSD chart.
Video Synopsis – Pin Bar Reversal Method on NZDUSD
In the above video I discuss the mechanics behind the pin bar reversal with a 50% retracement entry, it’s a slight “twist” to the typical pin bar entry, and this is only one of many ways of trading pin bars. Also, we are going to discuss how to incorporate horizontal lines to mark levels of confluence and work as filters. We need a bias in the market, if a market is trading between support and resistance in a trading range, the bias would be “neutral”.
What we are looking for in the above video is “key” points in the market; support and resistance levels or horizontal levels. Next, we are looking for a pin bar, which is an obvious price action signals that has a long upper or lower tail, I discuss just the basics of the pin bar in this video.
A pin bar reversal formed at a resistance level in this video, so it has confluence as a sell signal off the resistance level marked in this video. The “50%” entry is carried out after the pin bar forms, after the pin bar forms I mark the half-way point of the pin bar, than as / if the market moves up to this half way point I place a limit order to sell at this level with a stop loss just above the high of the pin bar. I then aim for a risk / reward target of at least 1 to 2, in this video I had a 90 pip stop with a 180 pip target. This video has been a discussion of how to trade the pin bar 50% retrace method.