Forex Reversal Bar Method with 50% Retrace Entry
Below, I discuss the Pin bar reversal trading method with my 50% retracement advanced tweak entry on the daily NZDUSD chart.
NOTE – The Trading Platform With New York Close Charts Mentioned In This Video Can Be Downloaded Here.
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.
About Nial Fuller
Nial Fuller is a Professional Trader, Investor & Author who is considered ‘The Authority’ on Price Action Trading. His blog is read by over 200,000+ followers and he has taught 25,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
Nial hi, I’m using Meta Trader4 with Forex.com and the pin bar on the above daily chart is completely different looking, in fact it doesn’t look like a pin bar at all, I’ve just downloaded the FXLite MT4 demo and it (the pin bar) looks like yours now.
Great job keep it up. but could please make the resistance and support level legible so that the line will not be vague to us.thanks
Which timeframes and pairs work best when using this method?
Can you make the charts a little larger ? You have the full screen and you use less than 10% of it !
I am using the interbank fx platform. Where can we get the feature support and resistance that you showed on this video. This is an excellant tool
The support resistance levels are “visual lines that must be manually drawn” on the forex chart.
Excellent! This answers a lot. The other day I asked you why you didn’t stay in a pinbar trade you posted on the forum. You responded it doesn’t pay to be greedy while I stayed in it (targeting a fibo level), and ended up losing a sizeable percentage on the reversal. I can see now this is a better entry scenario, and makes for a more realistic exit as well.
The more I look, good pinbars are plentiful. While I’m still having trouble identifying good (profitable) fakey setups in the process of their forming, I can see that once one learns to be observant, experience improves one’s results.
Thanks Nial