Video Synopsis – Trading Pin Bar Reversals – Price Action Trading System
In the above forex trading education video I discuss the AUDJPY and how to trade pin bars. Pin bars don’t have to occur at the exhaustion point of a move, they can also occur in the context of a trending market as continuation moves. There was a very large pin bar in this video that occurred at the exhaustion point, and I simply wanted to point out that pin bars do not HAVE to occur at the end of a move, but that they can occur in the midst of a move as well.
There are a few different pin bars in the above video that worked out quite nicely. I trade the pin bar setup and the inside bar setup exclusively on the 4 hour and daily charts. I discuss how to enter the pin bar near the 50% retrace in this video; this is an alternate entry technique that you need instruction on before trying.
When I spot a setup I want to trade in the market, I first calculate the potential risk / reward of the setup and then I decide whether or not the setup is worth taking. I aim to get 2 or 3 to 1 minimum on pin bar setups, that is 2 or 3 times my risk amount per trade. Your profit is defined by your risk; how far can the market move as a multiple of my risk before the market encounters support or resistance. Don’t try to trade every single pin bar setup, only trade the best ones and trade with confidence.