Sentences with phrase «of pin bar»

The confirmed entry for me would have been the close of the pin bar itself, a more conservative entry would have been a break of the low of the mother bar that surrounds the inside bars.

The number one characteristic of a Pin Bar is that it has a small body followed by a large shadow or wick.

You teach from your videos to enter on 50 % of the pin bar.

The trade entry «trick» is essentially entering a price action signal on an approximate 50 % retrace, i.e. entering on a limit order as price retraces to the 50 % level of a pin bar for example.

You can either take the trade with a tighter stop loss as we discussed above, or you can use a normal distance stop loss (in the example of a pin bar, a normal stop loss distance would be the full length of the pin bar from high to low).

If the tail of the pin bar candlestick points down you can expect the price of the asset to go up.

The specific type of pin bar candlestick that you should look for is one with a long tail and a small body.

A 50 % entry of that pin bar has traders in profit by 200 pips at the time of this writing.

What market conditions need to be present to justify entering on a break of the nose of the pin bar?

The entry came on a 50 % retracement of the pin bar's trading range, we place a sell limit (to go short) near the 50 % level of the pin bar tail and place our stop just above the high of the pin.

Note that just before the trading range finally broke out lower, a long - tailed pin bar formed that showed rejection of the interior of the range, once the low of this pin bar broke we saw a significant move lower.

The range of the pin bar should be comparable or greater than the size of the last few candles.

Sometimes a pin bar set up fail because it did not meet its full characteristics such as a long tail and a nose as well as the small body.entry at the 50 % of the pin bar or pending order below the nose

If you read last week's USDJPY commentary, you may recall my comment about the relatively small size of the pin bar.

In this video I got filled almost perfectly at the next bars high because I enter certain pin bar setups at the 50 % level of the range of the pin bar with a stop above the high of the pin bar.

Great article on how to focus on behaviour of pin bar on any chart and make good trade..

the high and low of the pin bar would then become my key level.

• The shadow or tail of the pin bar sticks out (protrudes) from the surrounding price bars, the longer the tail of the pin bar the better.

• The area between the open and close of the pin bar is called the «body» or «real body».

• The open and close of the pin bar should be very close together or equal (same price), the closer the better.

• A general «rule of thumb» is that you want to see the pin bar tail be two / thirds the total pin bar length or more and the rest of the pin bar should be one / third the total pin bar length or less.

The chart below shows us another good example of a pin bar buy signal that formed at a support level and was then followed by slow / grinding price action before the big move higher took place.

Note the 50 % retrace entry of the pin bar, this is an entry technique we teach on our courses and it works good on long - tailed pins, giving you a much better risk reward potential due to the tighter stop loss distance.

But, when it did start falling finally, it fell like a rock and eventually tested the key support down near 169.35... a move of about 800 pips from the low of the pin bar!

Rregarding the setup or the entry point, you told us to entr the trade as soon as we break or exceede the HIGH price or the LOW price of the Pin Bar....

Thus, a break of the pin bar low meant a break of the event area and we can see a significant move followed.

we will sell on a break of the low of the pin bar or buy on a break of the high of the pin bar.

It's the «pointy» part of the pin bar that literally looks like a «tail» and that shows rejection or false break of a level.

It's worth noting that prior to the formation of this pin bar, the weekly chart had also formed a very large and obvious bullish pin bar reversal, so we had both time frames in agreement, this is not always necessary but it does add confluence to a setup.

Note the 50 % limit sell entry that presented itself as the next bar retraced to about 50 % of the pin bar's length before the market fell significantly lower...

• The close of the pin bar was lower than the open and near the bottom of the pin bar, another indication of a «forceful» and meaningful rejection of higher prices.

Hi Nial, your article on risk / reward is very educative towards the mastery of the entire forex business.The entry point put at 50 % retracement of the pin bar is still a problem for me - a newbee.Position sizing is another mountain to cross.I wish to thank you all the same for what i have gained so far from your mentorship.

I can see all your videos are always along the trend, but there are some good trade that comes with counter trend, so, my question is how do we recognize this kind of pin bar that we work well on counter trend?

Notice in this example our desired risk amount is $ 100, but our necessary stop loss distance is 109 pips, because the safest spot for our stop loss in this example is just below the low of the pin bar.

I'm just wondering what makes you take that setup as a 50 % retracement of the pin bar as opposed to entering on the close of OR break of the high of the pin bar?

What do you think of the pin bar on the daily chart USDCAD formed last Friday sept 08.

The bar that formed just after the pin bar setup moved down to the 50 % «balance point» of the pin bar, allowing for a tight entry near the 50 % balance point of the pin bar's range.

So, in a downtrend like we see below, the stop loss would be just above the tail of the pin bar, when I say «just above» that can mean about 1 to 10 pips above the high of the pin bar tail.

Naturally, we would want to place our stop loss just below the tail of that pin bar to make the market show us that we were wrong about a bottom being in place.

The most logical and safest place to put your stop loss on a pin bar setup is just beyond the high or low of the pin bar tail.

Our stop - loss to protect our capital is placed just above the high of the pin bar; the setup is invalid if price moves above this high.

The defining characteristic of a Pin Bar is the long tail (shadow) which implies rejection.

Due to the smaller size of this pin bar you had the potential for a quick profit of 2 to 3 times risk since the stop loss required was relatively small.

In the chart below, we can see by waiting for an entry near the 50 % retrace level of the pin bar and keeping our stop distance the same, we actually avoided the losing trade and turned it into a nice 2R winner:

In the case of a pin bar, the false - break would only be one bar, as opposed to the two - bar false - break structure I've shown in the diagram above.

Will you also place a Buy Stop on the break of the pin bar?

This trade entry decision included the uptrend and then the bullish price action signal confirmation, the stop is placed just below the low of the pin bar

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.

In your pin bar article you mention placing entry at the break of a pin bar then the stop one pip below the tail - this technique has saved me several times as my order has not been hit.

The «trick» entry would have been at the key support level through 1272.75 which is also very close to the 50 % level of the pin bar.