How Would You Define a Pin Bar

I'm really trying to focus on trading pure price action and candlestick analysis to advance my trading and one of the setups I really am trying to expand on is the pin bar setups.

Many of you know what these are... heres an example of a few...

My question is do any of you have set rules on what qualifies a pin bar as an actual pin bar?

I would like to code up a rule set in easylanguage so for backtesting I could at least see at a glance potential entries. Obviously this would just be a rough approximation but it would make things much easier.

But to do that I need to understand what really makes a pinbar and pinbar. They are obviously not the same as a hammer candle so for long setups High <> Close and vise versa...

Is there any kind of "the wick should be greater than 50% of the candle" kind of rules or anything like that?

Any concrete rules that I could code would be appreciated. I'd be happy to supply the completed .eld and .pla when finished.

Reply : Well worth a read, recommended. He was partly inspired by James16 over at FF. Some people have quite strict criteria on the 'eyes' others more lax. I think Pring coined the phrase.

From Martin Pring on Price Patterns by Martin J. Pring,

“Pinocchio bars are bars in which the bulk of the trading takes place outside the previous and subsequent trading range.”

“The character Pinocchio tells us when he is lying because his nose gets longer. In the case of the Pinocchio bar, it is the trading beyond the resistance or support level in question that indicates that the signal is false.”

Try This Beneficial Pin Bar Technique

I'll get straight to the point so that you completely understand how I trade this method. First you must know what a pin bar is. If not you should really look at some pictures but I will explain quick. A pin bar has a long tail and a short body. There is 4 different pin bars but I won't touch on that.

The pin bars we are looking for are the kind that form at the top or bottom of a trend. After you spot one of these pin bars you want to see if it closed near any support or resistance lines.

If a pin forms after a trend up then we would look to go short if it closes near resistance. If the pin forms after a down trend and it is near support then look to go long. That's the system, that alone is how I put over 600 pips under my belt this year.

I like it because its so simple and the trades are really easy to spot. It takes me 10 minutes a day to flick through all my charts and adjust any open trades. Only ten minutes a day people, why does anybody sit in front of their computer scalping all day?

The key to doing well with pin bars is only using them near support and resistance. I consider trend lines, chart patterns, pivot points, and key chart levels all support and resistance areas. The best setups are when multiple things line up all at once. Those are the high probability trades, and the ones you can throw some extra dough into.

This pin bar strategy is only profitable if you trade it properly. Don't trade every pin bar you see, Use proper money management, and follow through with trades you take. Sometimes a trade will be in loss for a couple days before it goes in your favor.

I forgot to tell you about stop loss and take profit. Good risk to reward is the key to any profitable strategy. Ask any of the 5% of people that make money trading if they risk more than they make. They would probably laugh in your face.

So for this pin bar strategy your stop loss will be above the high or low of the pin and take profit at two times what you are risking, or a key price level. If your short then aim for a support line, and if your long then aim for a take profit at resistance levels.

If you constantly risk half of what you make on trades then technically you could lose 2 out of 3 trades and still break even. That's not including the spread or other factors. Sometimes you won't be able to aim for twice your risk but others you will be able to shoot for three or four times!

I just took a trade on gold today and I didn't even set a take profit, this trade could make serious money if the trend keeps going up. Barely any risk and a whole lot of reward. Play your trades smart guys. Take profits when you have to, and let profits build when the time is right.

What is the Pin Bar?

Source : http://pinbar.blog.com/2012/05/26/what-is-the-pin-bar/

A Pin Bar is consistently refereed to as a change design and generally seems to be at considerable cost activity stages, these stages can be but are not restricted to :

Significant assistance and resistance
Move peaks and swing lows
Fibonacci levels
Rotate Points
Pattern Lines
Going Averages
Circular Variety Levels

One place that is not so often discussed is dealing the Pin Bar as a extension Pattern. This Pattern seems to be just as consistently as the change Pin Bar Pattern and in my view is just as efficient and provides excellent revenue possibilities.

How to Trade Fake Pin Bars?

Source : http://pinbar.blog.com/2012/05/26/how-to-trade-fake-pin-bars/
 
Pin Bar, which is brief for ‘Pinocchio Bar,’ is 1 candlepower unit installation that signs cost activity investors into prospective reversals out there. A pin bar is an pointed pull that ‘sticks out’ from cost activity. Traders will usually look for one-sided draws that are two periods the dimension the candlesticks system.

When investors see pointed draws huge from cost activity, they can look for the strength that designed the lengthy pull to proceed by looking for a change.

So if a investor recognizes a lengthy pull huge below cost action; they can look to go lengthy. If a investor recognizes a lengthy pull huge above cost activity, they may want to look to go brief.

Much like Pinocchio’s nasal area – the pointed pull of a pin bar can tell us that a lie is being informed.

But not all lengthy draws are high quality. As a straightforward, many of these lengthy draws will not be Pin Cafes at all; but that does not mean that they cannot be used by Price Action investors. This content will move through how to business ‘fake’ Pin Cafes, or lengthy draws that do not keep out from cost activity.

What separates a Pin Bar from a Fake Pin Bar?

Source : http://pinbar.blog.com/2012/05/26/what-separates-a-pin-bar-from-a-fake-pin-bar/

The change between a Pin Bar and a Bogus Pin Bar is established by latest cost activity.

If the lengthy pull stays out from latest costs, that is a Pin Bar. This is the ‘lie’ that the industry may be informing us: That a activity to a formerly untried stage has gotten a new list of customers (or suppliers in the situation of a bearish Pin Bar).

If the lengthy pull does not keep out from past cost action; they are not a authentic Pin Bar, but rather ‘Fake Pin Cafes.’ The image below will show you with further detail:

As you can see above image, the fake pin bar does not quite keep out from past and latest cost activity.

With a authentic pin bar making a lengthy pull above the candlestick, investors could look to start a brief position to take aspect in the strength that designed the lengthy pull in the first position.

However, as you can see from the above installation – that would not have exercised too well.

Trading Bogus Pin Cafes needs extra research, as the indication of a short-term change in costs may not be as constant as that of a authentic pin bar.

Pin Bar Trading Setups for Forex

Source : http://pinbar.blog.com/2012/05/26/pin-bar-trading-setups-for-forex/
 
Pin Bar research is one of the best methods to business the Foreign exchange industry with. By simply assessing a exposed price data we can spot successful arrangements that re-occur out there. The best approach to take with regards to using price activity to business currency trading is just to master a few time-tested and easily recognizable setups; this will allow you to business in a relaxed and gathered manner and will thus help you achieve constant success in currency trading. This article will present a couple of my favorite price activity setups; the change or pin bar installation and the within bar or within day installation.

Reversal Cost Action Setups

Reversal cafes often happen at major move points or at significant support and level of resistance areas in currency trading. Pin Bar change cafes can tip the eager currency investor off to huge online motions and also give investors a tangible technique to quit a past huge online run. Particular illustrations of price activity change arrangements can be found on numerous websites across the internet; YouTube is coordinator to some very good price activity video clips. Letting go bar arrangements are a great way to enter a popular industry or a range-bound industry. Once perfected, specific price activity change bar arrangements can confirm to be your breads and butter currency trading trading technique. You will experience various brands for change bar arrangements in currency trading such as, the pin bar installation or the capturing celebrity installation in candlepower unit terms.