PIN BAR Trading Strategy in Detail - Price Action Analysis [PDF]

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10/10/21, 5:46 PM

Price Action

 How to Study Candlestick  Candlestick Analysis   Price Action Analysis  Advanced Price Action Analysis

 Thrust Pullback and Measuring Move Analysis

 How to Trade with Smart Money

PIN BAR Trading Strategy in Detail - Price Action Analysis

PIN BAR Trading Strategy Back to: Trading with Smart Money

PIN BAR Trading Strategy In this article, I am going to discuss the PIN BAR Trading Strategy in Detail. Please read our previous article where we discuss WRB Trading Strategy in Detail. At the end of this article, you will understand the following pointers in detail which are related to bullish pin bar and bearish pin bar trading strategy.

 Supply and Demand Zone Trading

 How to Day Trade with Trend

 Multiple Time Frame Analysis

 Head and Shoulder

1. What is a pin bar? 2. Structure of pin bar 3. The psychology behind pin bar 4. How to use the pin bar in our trading? 5. One day trading strategy based on the pin bar

Pin Bar Structure

Pattern

 How to Trade with Support and Resistance

 Advanced Candlestick Analysis

 Trendline Trading Strategy

 WRB Trading Strategy Day Trading Strategies

Let’s understand a bearish pin bar. How it formed? Phase1: After a strong extended up-trend has been in effect, the atmosphere is bullish. Phase2: The price opens and trades higher. The bulls are in control. Phase3: But before the end of the day, the bears step in and take the price back down to the lower end of the trading range, creating a small body for the day. The long upper wick represents that sellers had started coming in at these levels. A lower open or a red candle the next day reinforces the fact that selling is going on and sellers have now taken control

 VWAP Trading Strategy  Gap Trading Strategy   Intraday Open High Open Low Trading Strategy

 PIN BAR Trading Strategy

 Trading with Sideways Price Action Area

 Pullback Trading Strategy  Intraday Breakout Trading Strategy Risk Management

 3 Techniques for Risk Management in Trading Stock Selection & Live Scanner

So basically pin bar is a reversal pattern. There are two types of pin (1) bearish pin bar, explained above, and (2) bullish pin bar

 How to make own Day Trading Scanner

 Stock Selection for Intraday Trading Intraday Trading Course 2020

 Intraday Trading Course https://dotnettutorials.net/lesson/pin-bar-trading-strategy/

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PIN BAR Trading Strategy in Detail - Price Action Analysis

 Multiple Timeframe Analysis for Intraday Trading 

 VWAP Trading  Opening Range Trading Strategy

 Opening Range Breakout Volume Price Action Analysis

 Volume Analysis in Trading

 Volume Price Action Analysis

 Volume Spread Analysis in Trading

 Candlestick Pattern Analysis

 Finding Entry Opportunity using Volume Spread Analysis

 Spring and Upthrust Trading Strategy

 VSA Trading Strategy

Criteria to Identify Pin Bars 1. First Requires old support or resistance in the background 2. Price rallies above resistance only to fall back below. Price closes below resistance and on or near its lows. reverse  for support 3. The “wick” (or tail) should be at least 2 – 3 times the length of the body. 4. The body should be completely contained within the previous day’s range. The body either red or black 5. The body should be present towards either the upper or lower extreme of the Pin Bar. 6. The wick should stand out when compared to surrounding bars. The wick of the Pin Bar should be larger than the previous day’s trading range 7. The following day needs to confirm 8. The  volume can be either low ( no demand above the resistance ) or high (supply overcoming the demand above resistance ), reverse for support

Option Chain Analysis

 Option Chain Analysis Indicator 

 RSI Trading Strategy BTST 

 BTST Trading Strategy TECHNICAL ANALYSIS MASTERCLASS

 Technical Analysis  Market Structure   Understanding Market Structure through Swing 

 Supply and Demand Trading (Part – 1)

THE CONTINUOUS PIN BAR Trading Strategy

 Supply and Demand

Pin bar does not always signal a reversal, so you’ll need to know how to tell when a pin bar has failed, and

Trading (Part – 2) 

how to react accordingly. The significance of the pin bar trading strategy depends on (1)location, where it appears in the trend, (2)length of the wick If the Pin Bar wick is more than 4 times larger than the average

Chart Patterns 

 Top 7 Chart Patterns in

trading range of the preceding bars. Then it will most likely become a (1)continuation pattern or (2)the wick will be tested again for reversal. 

Trading Every Trader Needs to Know

 How to Trade Bull Flag and Bear Flag Pattern

When presented with a massive Pin Bar my advice is to stay on the sidelines and wait for a better opportunity to present itself as you have to risk too much capital in hopes of being profitable. Let me explain this through an example

How to Become a Successful Trader

 How to Become a Successful Trader Most Popular Trading Books

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PIN BAR Trading Strategy in Detail - Price Action Analysis

 Most Recommended Trading Books

PSYCHOLOGY OF PIN BAR Trading Strategy Let me tell you very important information. Smart Money only targets places with higher Volumes are and he collects them. Generally, the places (reference points) are  1. support and resistance 2. area on consolidation/accumulations on yesterday high/low .weekly high/low  etc. and  3. At the beginning of the day 4. At the end of the day 5. Daily High and low.

Why do they do? The main objectives are: 1. To get volume 2. Avoid Slippage due to  big order 3. Smart money testing demand above old resistance before moving down or testing supply below support before moving up

How did they do? They move the price above or below any reference point hitting the stop losses of either buyers or sellers, while same time Encourage traders to commit to positions in the wrong direction. Smart money induce traders to take the wrong direction by using sharp and aggressive moves near the high or low of the day https://dotnettutorials.net/lesson/pin-bar-trading-strategy/

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PIN BAR Trading Strategy in Detail - Price Action Analysis

Let me explain when the price reverse from resistance. As the early price is marked up,  1. Premature short traders are liable to panic and cover with buy orders.(stop hunts)  2. However, those traders looking for breakouts will buy, but their stop-loss orders are usually triggered as the price move back down.  3. All those traders who are not in the market may feel they are missing out and will feel pressured to start buying.  Let understand through an example

What happens next, price move down words? After trapping breakout long trader 

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PIN BAR Trading Strategy in Detail - Price Action Analysis

Pin bar act as support and resistance  Low of bullish act as support and high of the bearish pin bar act as resistance

Pin Bar and market context To be able to trade Pin Bars effectively you need to be able to gauge the direction of the Trend and trade with it. Here are some key principles for trading pin bar

Pin bar work best in trending conditions Ideally, a Pin Bar should close in favor of the prevailing trend, for example, if the trend is up then the Pin Bar should have a close higher than the open and should be a bullish Pin Bar. The opposite applies to a downtrend.

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PIN BAR Trading Strategy in Detail - Price Action Analysis

A retracement to a prior resistance now- support area is a typically excellent trade A retracement to a prior resistance now- support area is a typically excellent trade

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PIN BAR Trading Strategy in Detail - Price Action Analysis

 

A choppy, range-bound market should not be traded Pin Bars that are in heavy traffic or choppy, range-bound markets should not be traded. The reason for this is that there is no clear trend and there are too many areas of interest for the price to stall at.

A pin bar should immediately follow-through If a  bullish pin bar fails to rally away from the danger point and the price hangs near the bullish pin bar low, then something is likely wrong.

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PIN BAR Trading Strategy in Detail - Price Action Analysis

Opening  Pin Bar Trading Strategy 1. Price gap up above previous day’s high(PDH) 2. Opening candle close above PDH. (bullish pin bar) 3. If low of the candle touches PDH and leaves a wick below then a very high probability trade 4. Entry above the high of the bullish pin bar candle 5. Ensure that there is no resistance overhead like big support/resistance 6. SL below PDH or below entry candle

NOTE:- REVERSE FOR BEARISH PIN BAR

Stop-loss placements https://dotnettutorials.net/lesson/pin-bar-trading-strategy/

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PIN BAR Trading Strategy in Detail - Price Action Analysis

The simplest and most likely method that you will profit from is to place your stop a certain distance beyond the high/low of the Pin Bar. 

What next For better understanding read the support and resistance article. As we explained above Pin bar best work from support and resistance level The best way to learn about Pin Bars is to open up some charts and try and find some for yourself. Once you have found a selection of Pin Bars, try and figure out whether or not they are good or bad Pin Bars with respect to their form and the candles that precede them. Here, In this article, I try to explain the PIN BAR Trading Strategy in Detail and I Hope you enjoy this PIN BAR Trading Strategy article. Please join my  Telegram Channel  to learn more and clear your doubts. https://t.me/tradingwithsmartmoney. 

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Trading with Sideways Price Action Area

6 thoughts on “PIN BAR Trading Strategy” BHANU MARCH 30, 2020 AT 11:48 AM

please write article about Fibonacci retracement and how to use, which time frame is best Reply SATISH JAGDHANE OCTOBER 20, 2020 AT 10:20 AM

Never seen such an excellent training whether in paid course or free. Kudos to Teacher for sharing Reply SHAIK NURUDDIN OCTOBER 21, 2020 AT 7:34 PM

Plz make a pin bar video for us. Many many thanks to u sir. God bless u Reply VAMSI SURI DECEMBER 6, 2020 AT 12:14 PM

Such an honest and clear explanation have never been shared…hats off to you sir..I have reading your articles and they have improved my trading psychology.it is only the greatest and pure minds really share knowledge…. someone like you sir.. thank you so much..god bless you and your family.. Reply ZAFER BAGLAN JANUARY 13, 2021 AT 11:36 PM

sevgier saygılar ALLAH Aemanet olun Reply

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PIN BAR Trading Strategy in Detail - Price Action Analysis

RAMESH ATMARAM POWAR APRIL 1, 2021 AT 8:36 PM

VERY NICE EXPLANATION ..I REALY THANKS U. I AM WAITING FOR YOUR FURTHER ARTICLE.. Reply

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